The key to growth motivation for enterprises

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Accelerating disbursement of public investment capital to realize growth goalsAccelerating disbursement of public investment capital to realize growth goals
Many reforms and innovations are necessary to avoid “wasting” the quantity and quality of enterprises. Photo: H.Diu

Platform for the “game” of globalization

From the perspective of manufacturing and exporting enterprises, Mr. Ngo Sy Hoai, Vice Chairman of the Vietnam Association of Wood and Forest Products (VIFOREST) shared that the export of wood and wood products in the first 3 months of 2024 reached US$ 3.4 billion, an increase of 18.9% over the same period last year. Wood products alone was a group of deeply processed products with high added value, reaching US$ 2.3 billion, an increase of 22.9%. To achieve this result, Mr. Hoai highly appreciated the policies created by the Government and many ministries and branches, from mechanisms to simplify administrative procedures to incentives on credit and finance…

But according to Mr. Ngo Sy Hoai, some steps of institution and law enforcement costs were still “difficult”. The representative of VIFOREST stated that currently, export enterprises were only participating in the international market as independent enterprises and entrepreneurs, not yet as national industries, so their competitiveness was low, leading to export growth rely heavily on a number of comparative advantages such as input costs, low labour… Therefore, he proposed a mechanism for enterprises to unite in cooperation and connection to create internal strength, avoid risks from disputes or trade defense.

Also talking about policy support, Mr. Nguyen Manh Than, Chairman of the Board of Directors and General Director of Ao Vua Joint Stock Company said that the company need many factors to survive and develop, in which, it need policies to remove difficulties in business and investment, such as reducing the time to carry out project investment licensing procedures. Mr. Than said that some projects had not been licensed for 5-7 years because many regulations still made it difficult.

Representing the capital’s small and medium-sized enterprise community, Dr. Mac Quoc Anh, Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises, Director of the Institute of Economics and Enterprise Development, said that according to the Association’s statistics, currently, small and medium enterprises were facing five difficulties, including lack of orders, lack of capital access, cumbersome administrative procedures, concerns about criminalization in economic activities, and lack of high-quality human resources, especially in field of science and technology.

Therefore, Mr. Mac Quoc Anh said that it was necessary to expand export markets to unlock orders; unlock capital sources by solving problems of bonds, bank capital, and ineffective capital sources from funds. At the same time, review and remove cumbersome administrative procedures; take measures to further strengthen the confidence of the business community and private investors…

Mr. Mac Quoc Anh added that the Law on Support for Small and Medium Enterprises was promulgated in 2018, but provinces and cities had not implemented it effectively. Although Hanoi and a number of centrally run provinces had acted quickly to implement this Law, the entire country still needed to be involved. The government also needed to build a team of large enterprises into powerful “leading cranes” to enhance competitiveness, create a support platform, and lead domestic small and medium-sized enterprises to participate more strongly into the “game” of globalization.

Institutional reform is “the key”

Through the first months of 2024, the economy has shown many signs of positive growth, but there are still many difficulties related to business operations. In particular, the number of 74,000 enterprises withdrawing in the first quarter of 2024, is more than the number of nearly 60,000 enterprises returning and newly established, which is a noteworthy sign. According to experts, although most enterprises withdrawing from the market are small and micro-scale, making it difficult to cope with current difficulties, it also shows that there is a need for reform and innovation to avoid “missing” quantity and quality of enterprises.

According to Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM), the foundation for Vietnam to maintain macroeconomic stability in recent times was from effective solutions from fiscal and monetary policies. In recent years, the National Assembly and the Government had fiercely accompanied and removed many institutional and policy barriers to expand economic space and reduce unnecessary costs for enterprises… therefore, with this foundation, Vietnam needed to be more drastic in institutional reform to help promote the internal strength of the economy more effectively. “Institutions are a resource, even an important “key” for growth”, CIEM Director stated.

Dr. Tran Thi Hong Minh also emphasized the importance of accelerating business environment reform, simplifying business conditions and administrative procedures; Complete regional linkage institutions to create motivation for links between localities and enterprises according to value chain thinking to “cooperate together, win together”. Along with that is completing and effectively implementing the policy framework to improve labour productivity, associated with promoting innovation; Focus on removing difficulties in accessing export markets, accelerating trade facilitation…

Also on this issue, Mr. Hoang Quang Phong, Vice Chairman of the Vietnam Confederation of Commerce and Industry (VCCI), commented that institutional reform, accelerating business environment reform, and perfecting the policy framework for the new economic model… not only promoted new and traditional growth drivers but also regained and built trust for the business community, thereby boldly seeking opportunities of market expansion. trade, import-export, investment…

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