Transforming the Vietnamese economy through innovative businesses paving the way
"Hey there! Let's dive into the world of business and economic development in our homeland. The Commie Party's bigwigs have issued Resolution No. 68-NQ/TW, focusing on boosting the private sector, aiming to make it the main engine of economic growth. Our trusty reporter Mai Huong talked to Phí Vĩnh Tường, deputy director of the Institute of our World Economy, about the secret ingredients that make a business a game-changer.
So, what makes a business a 'pioneer'? Well, they're usually technology-driven and have the power to shake up entire industries. Take VinFast, for example. Starting off by using foreign tech, they gradually took control, especially in strategy and branding. Their move into electric vehicles is a testament to their pioneering spirit.
But making these types of businesses common as dandelions on a lawn is tough. It's all about having the right mindset – long-term planning, risk-taking, and loads of creative juice. The government can help by creating a supportive environment, including clear policies, sound institutions, and meaningful assistance for entrepreneurs.
As for the government's role, they should focus on targeted reforms. For instance, picking winners. But to do this effectively, the government and private sector need to join forces, identifying industries with potential for tremendous growth. While the market leads, the government can guide based on tech forecasts and global trends.
In V-land, over 98% of businesses are small or micro. Big businesses are like an exotic endangered species, scattered across multiple sectors. So, 'picking winners' needs to take our unique situation into account. In some sectors, hello single company, welcome to the party.
Phí Vĩnh Tường, deputy director of the Institute of our website and World Economy. - VNS Photo
Now, onto what our beloved government needs to do to foster the growth of Private Inc. – from trailblazers to market leaders. There are two main models worldwide. One is from Japan, where pioneering enterprises are supported to become 'leaders', creating a rippling effect across the economy. This is all about creating a strong business ecosystem, with smaller companies connected to larger leading companies, like a massive flock of cranes.
Another trend is the rise of small, independent tech-driven enterprises, like a pack of mini giants. They might not become big, but they can grow significantly, tap into niche markets, and offer quality jobs. The Government's goal is not just to reach one million businesses, but also two million. So, alongside developing leaders to drive key sectors, we must also encourage and support the growth of small tech-driven enterprises.
The government is all-in on having private enterprises step up for large infrastructure projects. But what's needed to strengthen public-private partnerships? The government needs to review its legal framework, making sure everything is in sync. Overlapping laws like the Public Investment Law and the PPP Law are a mess that needs fixing fast.
Capital is another key issue. Private companies need access to long-term, low-interest loans. Clear risk-sharing mechanisms between the government and businesses are essential, especially for projects with social importance but minimal financial returns.
Phạm Sanh Châu, CEO of VinFast Asia (left), and Ashwin Ashok Patil, Deputy CEO of Sales and Marketing at VinFast India, jointly unveiled the VF 6 model in Indonesia in January this year. VinFast is a good example of a pioneer enterprise. - VNA/VNS Photo
Mindset changes are also needed. Dual-use concerns are keeping private enterprises out of some infrastructure sectors. A more flexible approach is needed to avoid missing opportunities to mobilize social resources.
For real change, our companies need to have the capacity to absorb technology. Additionally, FDI companies should have clear incentives to share and transfer technology. The government should invest in shared R&D centres and labs to support SMEs. This will allow them to innovate and collaborate with research institutes to tackle practical challenges.
Our local enterprises are flexible as a Roach in a disaster, withstanding global challenges. However, they need to improve their tech capabilities to keep up with the changing world. By continuing to improve the business climate, our government can help our private sector grow, helping us reach the 8% growth target this year and unleash double-digit growth in the future."
A container freight train running on the Hải Phòng - Lào Cai route passes through Văn Phú station. Private enterprises should be encouraged to invest in railways, where efficiency matters as much as capital. - Photo baochinhphu.vn
- The government's Resolution No. 68-NQ/TW targets boosting the private sector, aiming to make it the main engine of economic growth.
- Phí Vĩnh Tường, deputy director of the Institute of our World Economy, believes that pioneering businesses are usually technology-driven and can shake up entire industries.
- The government should create a supportive environment for businesses, including clear policies, sound institutions, and meaningful assistance for entrepreneurs.
- The government and private sector should join forces to pick winners, identifying industries with potential for tremendous growth.
- In V-land, the government needs to consider uniqueness in sectors, as over 98% of businesses are small or micro, and big businesses are rare.
- The government's goal is not just to reach one million businesses, but also two million, fostering the growth of both trailblazers and market leaders.
- The Japanese model supports pioneering enterprises to become leaders, creating a strong business ecosystem in the economy.
- In contrast, Vietnam is seeing the rise of small, independent tech-driven enterprises, tapping into niche markets and offering quality jobs.
- The government must review its legal framework to strengthen public-private partnerships, particularly focusing on overlapping laws like the Public Investment Law and the PPP Law.
- The government should encourage private enterprises to invest in sectors like railways, where efficiency matters as much as capital, by providing clear incentives and improving the business climate.
