30
THE DEVELOPMENT OF PRIVATE SECTOR INVIETNAM:
OBSTACLES AND SOLUTIONS
PROF. NGUYEN HONG SON, PhD.
– National University of Hanoi*
For over three decades, the private sector in Vietnam experienced encouraging development in both
number and performance. This sector has greatly contributed to the settlement of national principal
socio-economic issues. However, the development of private sector in Vietnam is also facing variety of
obstacles making it not promote the best potential to play a role as “important drive of the economy”.
Keywords:
Private sector, economy, enterprises, start-up, business investment environment
Received: November 15
th
, 2017
Revised: December 27
th
, 2017
Accepted for publication: January 15
th
, 2018
Obstacles for the private sector in Vietnam
For over three decades, the private sector in
Vietnam experienced positive development in
both number and performance. This sector has
greatly contributed to the settlement of the national
principal socio-economic issues. However, the
development of private sector in Vietnam is also
facing variety of obstacles. Specifically:
Firstly,
the obstacles related to the theory and
perception toward the development of private
sector.
After more than 30 years, by present, the
strategy and views of the National Party toward
the development of private sector have been
consistently consolidated and renovated, however,
there have also been problems that need to be
studied for better agreement in terms of guidance
and implementation. Specifically, the definition of
socialist connotation for the market economy and
the role of private sector as well as public sector…
Secondly,
the obstacles related to the legal
framework for the development of private sector.
Vietnam has amended the Constitution,
promulgated hundreds of laws (from civil to the
various types of commerce, banking, investment,
enterprise, etc). However by now, the system
of constitution and laws of Vietnam by the
requirements of market economy and international
integration has not been completed and sufficient
as well. For the past years, the number of legal
documents have been significantly increasing,
meanwhile the effectiveness has not been ensured;
the reference of public views has been improve
but not making significant change in quality, etc.
There have been unclear, inconsistent, overlapped
or complicated regulations causing the fact of law
compliance confuse between the authorities and
enterprises.
Thirdly,
the obstacles related to the business
investment environment.
- The participation into a free business
market rights has not been respected; business
environment has not been fair and healthy; the
participation, operation and retreat have been
facing many difficulties.
- The access to information and resources
(capital, lands). Private enterprises with small
business scale ususally face greater difficulties in
accessing information than larger ones. Private
companies are also facing difficulties in accessing
lands for doing business.
Fourthly,
the obstacles related to the
implementation of regulations for the operation
of private sector. Despite the fact that, for the
past years, ministries and industries have
applied innovations in their regulations on the
establishment of enterprise, access to electricity,
tax, customs and social insurance, etc. The fact
shows that there has been a great gap between
regulations and implementation of these laws.
For example: Inspite of renovations in the Law
on Enterprise and the Law on Investment 2014,
there have been bunches of obstacles related to the
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