Developing Private Enterprises: The Need for Strong and Practical Policies

The core issue is not only the internal difficulties of businesses but also the policies and business environment. Dialogues between the government and the business community provide opportunities to identify solutions, but more importantly, these solutions must be effectively implemented, leading to clear and sustainable changes.

Barriers Hindering the Development of Private Enterprises

Over the years, reforms in the business environment have made certain progress, yet significant bottlenecks remain, preventing private enterprises from reaching their full potential. One of the most critical barriers is the complexity of administrative procedures. Although the government has repeatedly emphasized the reduction of unnecessary business conditions, businesses still report cumbersome processes that waste time and increase costs.

Additionally, in the context of global integration, Vietnamese businesses face intense competition from multinational corporations. Foreign companies have advantages in capital, technology, and modern management systems, whereas domestic enterprises are limited in scale, financial capacity, and brand recognition. Without adequate government support, private enterprises will struggle to survive and expand into international markets.

Practical Solutions to Overcome Challenges

Furthermore, preferential credit packages specifically for SMEs should be introduced to help them access capital for scaling up and investing in technology. The State Bank of Vietnam could collaborate with financial institutions to implement credit guarantee programs or establish startup support funds, thereby reducing financial burdens on businesses.



Beyond financial support, the government should also promote digital transformation and technological innovation among enterprises. Digital technology adoption not only helps optimize costs and improve productivity but also creates opportunities to access international markets. Vietnamese businesses can leverage e-commerce platforms, artificial intelligence, and big data to enhance competitiveness. However, to achieve this, specific support policies are needed, such as tax exemptions for companies investing in digital technology, digital workforce training assistance, or connections with major technology corporations to foster an innovative ecosystem.

The Role of Enterprises in Enhancing Their Own Capabilities

In addition to government support, private enterprises themselves must proactively improve their management capabilities, innovate business models, and prepare for deeper integration.

Rather than focusing solely on the domestic market, Vietnamese businesses need to develop strategies for international expansion by partnering with foreign companies, integrating into global value chains, and enhancing product quality to meet international standards. Branding, investment in research and development (R&D), and product differentiation will be crucial for long-term competitiveness.

Moreover, improving workforce quality is a key factor for sustainable business growth. Many enterprises still struggle to recruit skilled workers, particularly in technology, digital industries, and industrial manufacturing. To address this issue, businesses should actively collaborate with universities and research institutes to train and develop high-quality human resources instead of relying solely on government policies.

Towards a Sustainable and Equitable Business Environment

Promoting private enterprises is not solely the responsibility of the government but requires the collective efforts of the entire economic and social system. A transparent, fair, and stable business environment will empower enterprises to grow stronger and contribute more to economic development.

To achieve this, strict oversight mechanisms must be in place to ensure that private enterprises are treated equally alongside state-owned enterprises and foreign-invested businesses. Healthy and fair competition among economic sectors not only optimizes resource allocation but also encourages private enterprises to develop more creatively and efficiently.

Additionally, the government should continue institutional reforms to facilitate greater private sector participation in infrastructure and public service projects through public-private partnerships (PPP). This approach not only provides expansion opportunities for private enterprises but also reduces the burden on public investment and improves national resource management efficiency.

Conclusion

Developing private enterprises is not just an economic strategy but also a crucial political mission to build an independent, self-sufficient, and sustainable economy. Close cooperation between the state and enterprises is essential, with the government playing a role in creating a favorable business environment, while businesses must take the initiative in innovation and competitiveness.