Transforming the Vietnamese economy through the innovative forces of leading businesses
Let's dive into the world of private enterprise growth in our country, shall we? The Communist Party of our land recently issued Resolution No. 68-NQ/TW, focusing on developing the private economy. This resolution outlines strategic directions, goals, and innovative solutions to make the private sector the driving force behind our economy. Those clever cats at Việt Nam News got ahold of Phí Vĩnh Tường, deputy director of the Institute of our website and World Economy, and asked him a few burning questions about this sector's development.
So, what makes a 'pioneer enterprise'?
Pioneer enterprises usually have two things going for them: technology and the power to reshape entire industries. In many countries, tech companies are the engines of innovation and progress, leading the way by breaking new ground and setting trends. Take VinFast, for example—though it started with foreign tech and strategy, it eventually took control of these areas. The company's bold move into electric vehicles aligns with global green trends, making it a prime example of a pioneer.
But can we scale up this 'pioneer model'?
It's tricky. Internal factors, such as leadership, and external factors, like government support, play crucial roles. Leadership is everything when it comes to fostering a pioneer mindset—it requires long-term vision, risk-taking, and a fierce desire to innovate. Although these types of leaders are rare, with the right environment, we can encourage their growth. The government can do its part by implementing targeted reforms, identifying industries with growth potential, and providing clear policies and meaningful support for entrepreneurs. It's all about choosing promising businesses and letting them soar!
Phí Vĩnh Tường, deputy director of the Institute of our website and World Economy. - VNS Photo
What key conditions does our country need to foster the growth of private enterprises?
There are two distinct development paths for businesses worldwide: Japan's 'flying cranes' model and the rise of small, independent technology-based enterprises.
The 'flying cranes' model thrives on a strong business ecosystem, where pioneering enterprises help lead and guide smaller companies. The private sector should collaborate closely, with larger companies sharing knowledge, technology, and experience with those behind them.
But nowadays, small, independent technology-based enterprises are taking center stage. These businesses, though small, can still grow significantly, tap into niche markets, and create quality jobs that pay decent wages.
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
Our government aims to double the number of businesses in the next few years, so it's essential to support both the growth of leaders driving key sectors and the growth of small tech-driven enterprises.
How can public-private partnerships (PPP) be strengthened?
Our government recognizes the role of the private sector in infrastructure projects and has introduced policies to boost their involvement. However, with projects requiring substantial investment and efficient operation, it's clear that the government can't handle it all on its own.
First, we need to review our legal framework to ensure there are no overlapping laws that create obstacles. Next, private companies need access to low-interest, long-term funding, and clear risk-sharing mechanisms with the government for socially important yet financially unfeasible projects.
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
We also need to craft a more flexible approach regarding private investment in traditionally off-limits sectors like ports and airports to avoid missing out on opportunities to mobilize social resources.
How competitive are private enterprises in Vietnam, and what can be done to keep them that way?
Private enterprises in Vietnam are pretty adaptable, having overcome numerous challenges over the past decades. However, competition among major nations and the ongoing Industrial Revolution present two significant challenges that require attention.
Our enterprises must develop core technological capabilities to participate in global supply chains and adapt to rapid technological change. To achieve this, we must invest in vocational training, develop skilled human resources, and improve access to capital and technology.
Lastly, let's adventure into the future. Our private sector structure is forecasted to change over the next five years, with the proportion of micro-enterprises shrinking and the number of medium-sized businesses increasing. This shift will create a more sustainable and efficient economy and make the 'flying cranes' model more effective. Adios!
- The government can foster the growth of private enterprises by choosing promising businesses and providing clear policies, meaningful support, and targeted reforms.
- In our country, the growth of private enterprises requires a focus on developing core technological capabilities, investing in vocational training, and improving access to capital and technology.
- To keep private enterprises competitive, they must adapt to rapid technological change and participate in global supply chains.
- Public-private partnerships can be strengthened by reviewing the legal framework, providing low-interest, long-term funding, and clear risk-sharing mechanisms for socially important projects.
- The government should encourage private enterprises to invest in traditionally off-limits sectors like ports and airports to mobilize social resources effectively.
- Phạm Sanh Châu, CEO of VinFast Asia, provides an example of a pioneer enterprise, aligning with global green trends in electric vehicles.
- The 'flying cranes' model, where pioneering enterprises guide smaller companies, is essential for promoting collaboration in the private sector.
- The structure of the private sector is forecasted to change over the next five years, with a shift towards an increase in medium-sized businesses and a more sustainable, efficient economy.
