Brian Jeffrey
Recently, To Lam, in his leadership role within the Party and the State, shifted focus to engage with small and medium-sized enterprises, breaking away from the norm of interactions with state-owned enterprises or FDI companies. This move marked a significant milestone as it was the first meeting of its kind between a General Secretary and representatives from the private business sector. The private sector has emerged as a crucial pillar of Vietnam’s economy, contributing significantly to the GDP, total budget revenue, and national employment.
During the meeting, Mr. To Lam reiterated the Party’s belief in businesses as the prime drivers of economic progress. He underlined the Party and State’s unwavering commitment to providing optimal conditions for the growth of the Vietnamese business community. Recognizing the competitive challenges faced by many businesses, he encouraged them to persevere in their pursuit of success.
This gathering and the supportive gestures from the country’s leadership are anticipated to inject vigor into the business sector, which is currently grappling with various internal and external uncertainties.
Responding to this revitalized outlook, various economic experts and policymakers were consulted to explore the critical steps needed to tap into the country’s resources effectively and address the current predicament.
The consensus among experts is that rekindling the entrepreneurial spirit within the private sector and enhancing the work ethic in the public sector are essential for driving swift development.
Economic expert Nguyen Dinh Cung highlighted a decline in the entrepreneurial drive within society and emphasized the urgency in addressing the sluggishness within the state apparatus. He suggested a reduction in inspections and the removal of unnecessary constraints to boost business confidence and create a more conducive environment for economic activities.
Cung noted a concerning decline in business confidence within the private sector, citing a VCCI report indicating a drop in expansion plans among businesses. He stressed the need for immediate actions to bolster the business climate and stimulate economic growth.
Concerns were raised regarding policies like the travel ban imposed on tax-indebted entrepreneurs, with experts like Tran Dinh Thien arguing that such measures could be counterproductive. Thien proposed alternative solutions such as imposing heavier economic penalties to deter illegal activities, emphasizing the need for a fair and efficient legal framework.
Thien highlighted the adverse impacts of criminalizing civil economic relations and advocated for reforms to enhance contract dispute resolution and bankruptcy processes. He called for the establishment of economic courts at regional levels and improvements in the enforcement and judicial systems to ensure fairness and effectiveness in addressing economic violations.
