REVIEW
of
FINANCE -
Apr. 2018
33
corruption and enhance transparency as well as
receiving timely feedbacks from communities.
Establishing continuous dialogue mechanism
to monitor public administration and remove
obstacles and limitations occurred during policy
implementation.
Third,
solutions toward specific group of
stakeholders of private sector:
- For large enterprises:
It is necessary to have an
industrial policy consistent with the constructive
role and orientation of the State to create an
environment for the formation of large private
enterprises operating in new industries, especially
the fields rely on technology. Large private firms
need to develop a roadmap for successful stock
issuance in the international stock market and need
an export-oriented strategy instead of focusing on
some key protected sectors. geography.
- For small andmediumenterprises:
It isnecessary to
establishlinkages for thecomponentmanufacturing
industry, requiring moderate capital investment
scale and medium technological sophistication.
Governments and local authorities should direct
and focus resources to support the building of
clusters in the electronics, information technology,
food and foodstuff processing sectors, promoting
the development of supporting industries in these
areas. To broaden the scope and complete the
regulations of the Development Assistance Funds
for SMEs; Expanding the scope and objectives of
the credit guarantee mechanism. Standardizing
accounting standards, auditing, evaluation criteria
and credit rating of enterprises to reduce the risk of
loans to small and medium enterprises...
- For start-up business group:
Encouraging
and motivating entrepreneurship; Promoting
entrepreneurship into a sweeping movement in
society, attaching importance to effectiveness,
avoiding the form of attaching importance to
quality over quantity; Promoting the development
and perfecting the ecosystem of start-ups, helping
entrepreneursovercomethebarriersofcapital,risks,
human resources... to realize ideas; It is necessary
to minimize administrative procedures, reduce
taxes, create conditions for commonworking areas,
business incubators and organizations providing
legal consultancy, accounting, auditing, appraisal
services, technology transfer and investment
promotion... for start-up business development.
- For the informal sector:
Voluntary informal
production facilities should be encouraged to
transform into private voluntary ones, stemming
from the needs and interests of the establishments
themselves. On the other hand, continue to improve
thebusinessenvironment,supportthedevelopment
of this sector by reducing administrative burdens,
inspections, inspections, informal payments
and taxes for production households. business;
Facilitate employment of hired labor, recruit, lay
off and terminate labor contracts, unemployment
insurance, and provide adequate support to the
informal sector in vocational training.
- For agricultural and rural enterprises:
To make
a breakthrough, it must shift from a closed, small
and uncoordinated agricultural production model,
mainly at the household scale to the production
model. Large-scale agriculture, based on
enterprises and farms, operating under the market
mechanism. In order to facilitate the accumulation
of land, it is necessary to remove the land limit,
and to create favorable conditions for farmers to
lease agricultural land on a long-term basis; local
authorities should assist enterprises in renting land
from small farmers. In particular, it is necessary
to promote the close cooperation between local
authorities and enterprises, scientists and farmers
in order to overcome difficulties and constraints
for farmers and enterprises.
References:
1. MPI (2014), A white book of SMEs in Vietnam, Hanoi, Statistics Publishing
House;
2. CIEM (2010), Developing private sector, Central Institute for Economic
Management;
3. National Communist Party of Vietnam (1991), Fundamentals of national
building for the interim period of socialism, Truth Publishing House, 1991;
4. National Communist Party of Vietnam (1993), Document of the Second
Meeting of the VII Central Committee, National Politics Publishing House,
Hanoi;
5. Dau Tuan Anh (2016), SMEs in Vietnamare struggling in business, Vietnam
Economic Forum 2016, Hanoi;
6. Nguyen Son Hong & Tran Tuyen Quang (2014), A report summary of
30-year industrialization and modernization in Vietnam. College of
Economics, National University of Hanoi;
7. Doan Tinh, Nguyen Son, Vu Huong, Tran Tuyen & Lim Steven (2015). Does
rising import competition harm local firm productivity in less advanced
economies? Evidence fromthe Vietnam’smanufacturing sector. The Journal
of International Trade & Economic Development(ahead-of-print), 1-24.
