Private sector dialogue shows government’s determination

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After the first dialogue on April 29, 2016, what did the government do to realise its promise to support companies?

The first dialogue resulted in the issuance of Resolution No.35/NQ-CP dated May 16, 2016 on supporting and developing companies from 2016 to 2020.

Before the second dialogue, the Steering Committee for Enterprise Innovation and Development worked with the Ministry of Planning and Investment, the Vietnam Chamber of Commerce and Industry, and the Vietnam Association of Small and Medium Enterprises to organise two working groups to visit half of the localities, including Hanoi and Ho Chi Minh City, where 56.7 per cent of companies are operating, including those topping the provincial competitiveness index. These provinces include Danang, Quang Ninh, Dong Thap, and Binh Duong. However, the government also made sure to include localities that are especially disadvantaged economically, such as Ha Giang, Bac Kan, Lai Chau, and Cao Bang.

Nguyen Hong Long, deputy head of the government’s Steering Committee for Enterprise Innovation and Development

Through these working groups, we evaluated the progress made by Resolution 35. Basically, the leaders of the localities all remember the spirit of the resolution and continue to work along with private sector companies to elevate them to be their drivers of competitiveness and means of economic independence.

At the provinces we visited, the leadership followed the directive of the PM to have at least two dialogues a year with private companies to listen to their complaints and act to remove the obstacles they are facing. Many provinces hold more than the minimum required.

I would like to add that besides meeting with the provincial authorities, we also met with the local business associations separately to evaluate their review of the leaders objectively.

How did the companies evaluate the cooperation with government agencies?

There are complaints about some government agencies in the provinces, but in general the associations lauded the efforts and attitude of the agencies. They said that procedures have been shortened and simplified in many areas, including business licensing, tax, import and export, and social insurance.

Many of them said that thanks to Resolution No.19/NQ-CP dated March 18, 2014 by the government on major tasks and solutions for improving the business environment and national competitiveness and Resolution 35 they have saved significant time, resources, and money—especially under-the-table money.

One of the most important targets of Resolution 35 is to have one million companies by 2020. As of the end of 2016, the number was only 477,800. This means, from now till 2020, there needs to be 174,000 more new companies each year on average. Is this a difficult target?

One million is only the numerical target. In terms of quality, the government targets that by 2020 the private sector will contribute 48-49 per cent of the annual GDP and 49 per cent of the total investment in the country.

The first meeting between the government and the private sector, chaired by the PM himself, kindled entrepreneurial spirit and strengthened companies’ confidence in the government. In addition, it pushed government agencies and provincial leaders to remove the obstacles from the path of companies and accelerate the administrative reform to support them. I think the fact that the leader of the government met face-to-face with companies is a very important push to realise the targets.

As the government is showing determination, local authorities regard companies’ growth as their own and the National Assembly is going to ratify the Law on Supporting Small and Medium-Sized Enterprises at the upcoming third session, which will create a legal framework to support companies. With all these positive developments at hand, I believe the target is surely within reach.

Firms want hotline to Gov’t leaders Businesses agree that Government Resolution 35 on supporting and developing enterprises augurs change, but are adopting a wait-and-see attitude toward its implementation.

State launches resolution to boost business climate The government has enacted Resolution 35 on a series of remedies to bolster enterprises until 2020.