Plan on sustainable development of private sector ratified

According to the plan, the investment environment continues to be improved to maintain trust and enhance suitable investment and operation of the private sector. 

Enterprises are encouraged to apply sustainable business models, cleaner production technology in line with effective use of natural resources and environmental protection. 

The plan promotes innovation and start-up as and effectively realizes policies supporting small and medium-sized enterprises as well as accelerates labor capacity at enterprises, develops high-quality human resources and improves corporate governance and management capacity. 

The private sector is facilitated to apply science and technology and take advantages of the Industry 4.0.

The role of business associations and organizations are strengthened to support the private sector in sustainable and effective development.   

Promoting innovation, connectivity of private sector 

These measures aim to enhance the qualified and effective growth of the private sector, creating a solid foundation and a crucial force for fast and sustainable socio-economic development. 

Accordingly, at least 1.5 million enterprises will be operating by 2025 and the figure will rise to two million by 2030. 

The innovation and connectivity of the private sector are promoted in line with boosting qualified and effective growth of the private sector. 

The plan heads to narrow the gap on technology level, the quality of human resources and competitiveness capacity of enterprises as well as increase the proportion of firms joining the production chain and the global and regional value chain, which is equal to the rate of the nations taking the lead in ASEAN (ASEAN-4). 

In the 2021-2030 period, the average growth of the number of laborers working at the private sector will attain 6-8% per year while the average growth of incomes for laborers will reach 25-30% per year. The average growth of State budget contributions will obtain 23-25% per year. 

Ministries, agencies and localities are tasked to integrate measures and contents of sustainable development of the private sector into the national target programs, the ministries and agencies’ target programs and projects.  

2018 was the 4th consecutive year witnessing the unprecedented number of newly established enterprises. Now the private sector accounts for 42% of the national GDP and many of which have affirmed their market standings.

For the recent nine-month period, the whole country had nearly 102,300 newly registered enterprises with a total registered capital of nearly VND1.3 quadrillion, up 5.9% in number and 34% in terms of the registered capital as compared to the same period in 2018. The average registered capital of a newly established enterprise was at VND12.6 billion, up 26.6%.

By Thuy Dung