Private enterprises should continuously reform and increase their competitiveness in order to contribute 50%-60% of the national gross domestic product GDP), Prime Minister Nguyen Xuan Phuc said while addressing the second Vietnam Private Sector Forum, held in Hanoi on July 31.

PM Nguyen Xuan Phuc at the forum (Credit: VGP)

He reiterated the target of building a facilitating Government which accompanies businesses and protects all the legitimate rights and interests of investors, in accordance with the principles of the World Trade Organisation, bilateral agreements and the Government’s commitments.

The PM suggested focusing on the fields of global demand, such as agriculture, food, consumer products and tourism instead of concentrating solely on serving domestic companies as suppliers or subcontractors with low added value.

It is necessary to expand international cooperation in trade, technological transfer, production and sales of products to overseas markets, he recommended.

The Government pledges to create a transparent, safe and friendly business environment, as well as creating all favourable conditions for businesses to develop, especially private and small and medium-sized enterprises and startups, he affirmed.

He asked the ministries and relevant departments to hold periodical dialogues with businesses to promptly remove any bottlenecks.

The PM directed localities to prepare all the necessary conditions such as land and particular policies to enable investors to conduct long-term business.

He hoped that private enterprises will embrace the links and anticipate any risks or difficulties to promote innovation and actively engage in international integration.

The second Vietnam Private Sector Forum was organised by the Vietnam Young Entrepreneurs' Association and the Mekong Business Initiative.

A survey launched before the forum opened indicates that 65% of the businesses questioned expressed their hope for a proactive government.

The year 2016 marks a great stride for the private sector with the establishment of 110,000 businesses.

According to the Ministry of Planning and Investment, in the first seven months of 2017, the country had more 72,953 new firms, with a total registered capital of VND690.7 trillion (US$30.39 billion), a respective annual increase of 13.8% and 39%.

Since 2010, the private sector has contributed over 43% of the GDP. The proportion of the State economic and foreign direct investment (FDI) sectors is 28.9% and 18%, respectively./.

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