Important growth driver
According to experts, the close companionship and coordination between the State and businesses will be a decisive factor for the private economy to maximize its potential. Reasonable policies and timely support solutions not only create motivation for businesses to develop but also contribute to promoting sustainable economic growth.
Mr. Trinh Tien Dung, General Director of Dai Dung Construction Mechanical Trading Joint Stock Company, commented that to promote growth and sustainable development, it is necessary to focus on three main pillars of the economy.
"First is public investment and the State budget, in which transport infrastructure needs to be prioritized, especially in major economic centers such as Ho Chi Minh City and Hanoi. Second is to attract FDI, but it must come with reasonable incentive policies and effective monitoring mechanisms to ensure balanced development, avoiding negative impacts on domestic enterprises. Third is the private economy - an important growth driver, which needs to be focused on improving policies and creating more favorable conditions".
According to Mr. Dung, close coordination between the State and the business community is a prerequisite for sustainable economic development. The leading role of large enterprises needs to be promoted, while the business environment must also be truly favorable, transparent and stable for all economic sectors to develop together.
In addition, small and medium-sized enterprises and individual business households also need to be encouraged and supported to promote internal resources. Mr. Dung emphasized that boldly reforming administrative procedures and shortening licensing time for investment projects will help create a more transparent and effective business environment.
Economic diplomacy also plays an important role in expanding the market and attracting investment. According to Mr. Dung, Vietnamese representative agencies abroad need to accompany businesses, actively support in seeking cooperation opportunities and expanding business activities in international markets.
Effective financial solutions and capital support policies
Dr. Nguyen Quoc Viet, an economist from the University of Economics (UEB), said that the core problem for businesses today is investment capital. According to him, the State needs to specifically classify each project and business model to have appropriate support mechanisms.
For public-private partnership projects, the State should promote the role and motivation of the private economic sector by placing orders with large enterprises to develop infrastructure systems, technology or key economic projects, Dr. Viet emphasized.
The State capital contribution and the way external resources are mobilized are very important. The State needs to have a mechanism to guarantee and minimize risks for large projects.
In addition, the use of central or local funds also needs to be carefully considered to create the most favorable investment environment.
For business households and cooperatives, Dr. Viet commented that current credit guarantee policies are still small, not meeting actual needs. Business households propose to have a larger credit guarantee mechanism to meet the needs of small loans and increase access to capital.
Similarly, cooperatives when implementing green transformation projects also have difficulty in mortgaging assets to borrow capital. Dr. Viet said that there should be a special guarantee mechanism for green projects of cooperatives, helping them access larger capital sources and reduce the burden of mortgaged assets.
Mr. Viet also emphasized that large enterprises when accessing international capital such as credit, financial leasing or bond issuance often face exchange rate risks. The State needs to have a exchange rate risk prevention mechanism, similar to current export credit support programs, to help businesses feel secure in expanding production and business activities.
It is necessary to promote the leading role of large enterprises, while practically supporting small and medium enterprises, business households and cooperatives. Reforming administrative procedures, ensuring a stable business environment and timely financial support will help the private economy effectively contribute to the country's development.
