REVIEW
of
FINANCE -
Feb. 2018
27
Seventhly,
perfect the electronic tax information
system to collect taxes properly, especially for large
business households.
Eighthly,
renovate the specialized inspection
methods for import and export goods in the direction
of inspectionon thebasis of assessing the level of riskof
goods and the level of legal compliance of enterprises.
Ninethly,
priority is given to solve short-term
problems affecting private economy (land, access
to credit and the bureaucracy) but at the same time,
addressing solutions for medium-term bottlenecks
(stability of macro-policy, especially inflation,
exchange rate and interest rate, effectiveness of
contract implementation) and long-term (human
resources, infrastructure, institution- environment
for competing equally and application of science
and technology).
Besises,
to make private economy become the
driving force of economy, in addition to improve the
institutions involvedinthe issue, the implementation
of the Party and State’s policíe in practice is very
important. Moreover, social perception in the role
of the driving force of economy also plays a very
important role. Only when these three facets agree
each other, the private sector truly becomes the
driving force of the economy.
References:
1.Central Economic Commitee, (2017) Diagnose Vietnam’s Economic Growth 2017 -
Thebottlenecksandsolutionsforthedevelopmentofprivateeconomy;
2.Enterprise Development Agency, (2017), Ministry of Planning and Investment
(2017),Policyorientationofsupportanddevelopmentforenterprises;
3.Nguyen Thanh Tuyen & Nguyen Le Anh (2015), The relationship between
institutions, mechanisms, policies, governance and behavior. Journal of
DevelopmentandIntegration,22(32),3-9;
4.TranQuangTuyen&VuVanHuong(2017),TheDevelopmentofPrivateEnterprises
inVietnam:BarrierstoDevelopment.VietnamEconomicManagementReview,82,
27-35;
5.Doan,T.,Nguyen,S.,Vu,H.,Tran,T.&Lim,S.(2016),Doesrisingimportcompetition
harm local firm productivity in less advanced economies? Evidence from the
Vietnam’s manufacturing sector. The Journal of International Trade and Economic
Development,25(1),23-46;
6.Hakkala, K. & Kokko, A. (2007), The state and the private sector in Vietnam.
Stockholm,Sweden:TheEuropeanInstituteofJapaneseStudies;
7.Riedel,J.&Tran,C.S.(1997),Theemergingprivatesectorandtheindustrialization
ofVietnam;
8.Vu, L. T. (2016), The private sector to be driver of Vietnam’s economy (accessed
on 18/12/2017),
-
vietnams-economy.html.
and technology, cooperation and transfer of green
technologies from developed economies.
Secondly,
simplify of procedures, improve access
to credit by the private sector. Need to develop
programs, credit packages with reasonable interest.
Along with that, the activities of SMEs Development
Fund, the Credit Guarantee Fund for SMEs, the start-
up investment funds, etc. should be stepped up to
expand capital support channels for enterprises.
Thirdly,
ensure smoothly and uniformly the
regulations, policies and laws, creating favorable
conditions for enterprises to develop in all sectors and
fields not banned by law.
Fourthly,
expand business opportunities for
all economic sectors. The overall strategy of
developing the domestic market in the period up
to 2025 with a vision to 2035 should be completed
soon, promoting production and encouraging the
consumption of Vietnamese goods. In addition, the
Prime Minister’s Directive on Public Procurement
should be strictly implemented, narrowing the
sectors that SOEs hold in order to create more
market space for the private sector to participate.
Fifthly,
amendments and supplements to
the regulations relating to land acquisition,
land clearance, land allocation, land lease, land
conversion in using purpose, methods of land
valuation and access to land for enterprises.
Sixthly,
there are drastic solutions to reduce the
cost of doing business for enterprises (reviewing
fees directly related to the cost of enterprises to
consider reducing the fees to facilitate enterprises
to reduce input costs...)
Growth - Transformation - Integration
Market
Industrialization
Area
Land
Private
sector
Infrastructure
Full intergration
Full market
Resources
Human resourcest
Institutions
FIGURE 3: PRIVATE SECTOR IN THE VIETNAMESE ECONOMY
Source: Tran Kim Chung (2016)
