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Co-chairs recommend solutions as VBF 2015 kicks off

Released at: 19:15, 08/06/2015

Co-chairs recommend solutions as VBF 2015 kicks off

Measures assisting the private sector the focus of the two Co-chairs of this year's Vietnam Business Forum.

by Minh Tuyet

“The competitive capacity of the private domestic sector is the most important factor in Vietnam’s economy,” Mr. Vu Tien Loc, Co-chair of the Vietnam Business Forum (VBF), told the media on June 8 before VBF 2015 kicked off.

He pointed out that the medium-sized and the large-sized private sector accounted for only 2 per cent each of the number of domestic private enterprises and that domestic enterprises have become fragmented over recent years. “Domestic enterprises can only compete with foreign enterprises if they are large and strong,” he said.

For this reason, Mr. Loc called for solutions to developing the private sector, such as start-up policies, reforming State-owned enterprises (SOEs), and association and organization policies.

Meanwhile, Ms. Virginia Foote, also Co-chair of the VBF, recommended solutions be adopted on integrating domestic enterprises and foreign enterprises. “It is necessary to have policies to make Vietnam become a start-up country,” she said. Key sectors should be identified, where Vietnam has advantages.

She also urged the reform of SOEs so the private sector may develop, because when the government reduces its control over the former the latter will have more room to move. Ms. Foote told Mr. Loc of her disappointment about the equitization the large SOEs, because equitization is only being viewed another means of attracting capital and the private sector, especially foreign enterprises, can only buy a very small percentage of the shares in the equitization process.

Mr. Loc also called for the participation of organizations and associations to support the private sector. Channels connecting organizations and associations with the government should be created so there is more communication between enterprises and the government.

For Ms. Foote, policies should not separate domestic and foreign enterprises because private domestic enterprises should be integrated more into foreign firms. She also called for procedural reform to save time, saying that when procedures are too complicated foreign firms will not want to support domestic firms.

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