Loc was quoted by the Vietnam News Agency as saying that without further reforms, it is difficult for the private sector to contribute more to economic growth.
Loc said private enterprises made up nearly 50% of gross domestic product (GDP) but their business performance had not improved much, with nearly 70% of them unable to make profit.
Besides efforts of enterprises themselves, there should be support from the Government for them to cash in on opportunities in the nation’s international integration process.
Loc suggested the Government to deploy a program to assist enterprises in the sectors where Vietnam has a competitive edge like agriculture, agricultural machineries, electronics, information technology, textile, woodwork, pharmaceuticals and tourism.
The Government should soon issue laws on equitization of State-owned enterprises and support for small and medium enterprises, and a law or decree on supporting industries and business associations to create a healthy business environment and promote the development of private firms.
More efforts must be put on streamlining administrative procedures to make life easy for enterprises in terms of tax, customs, social insurance and business establishment.
In addition to a favorable business environment, securing safety for enterprises is equally important. Reality shows a lack of legal documents protecting the legitimate rights and interests of enterprises are cause for concern.
Loc said meeting capital demand of small and medium enterprises needs to be taken into account. It is important to lower medium- and long-term loans, relax lending conditions and offer favorable lending models for them.
Loc proposed establishing new funds for development of small and medium enterprises, private investors, innovation and application of science and technology, among others.
Connecting information systems of management agencies and business associations will help boost trade-investment promotion activities and technological development of enterprises.
