Vietnamese General Secretary and President To Lam met with entrepreneurs from the Vietnam Association of Small and Medium Enterprises, Vietnam.vn writes on August 27.
The publication notes that To Lam preferred to meet with small and medium-sized enterprises rather than state-owned enterprises or foreign direct investment or large private corporations. In fact, there has never been such a meeting in history.
It is also worth noting that, according to statistics, this sector has become the largest pillar of the economy: it accounts for 50% of GDP, 35% of total budget revenues and creates jobs for 50% of the total number of workers in our country. This in turn exceeds both state-owned enterprises and FDI enterprises.
To Lam stressed that enterprises are the driving force of economic development and emphasized that the Communist Party of Vietnam, the Party and the State pay special attention to and create the best conditions for their development.
The publication asked several experts to comment on the issue, which could be a key moment for a breakthrough in Vietnamese business.
In general, experts noted that today it is necessary to awaken the spirit of desire for entrepreneurial freedom in the private sector and the desire to work in the public sector that once existed in society.
Economic expert Nguyen Dinh Cung said: “There was once a business spirit in the community, but now everything is different. The system of governance is stagnant because it must focus on review, review and verification; no one dares to do anything.”.
According to him, the role of the State remains very important in socio-economic development, which is why it is necessary to quickly overcome the stagnation of the public sector.
He also noted that the private sector is also stagnant and business confidence is very low.
Around 27% of companies plan to expand production and business in 2024 and 2025, significantly lower than the 35% in 2022.
Kung said: “A leader is an eloquent person who constantly gives speeches to encourage entrepreneurship, thus generating change. In addition, eliminating inspections and giving some instructions, for example, lifting the ban on entrepreneurs with tax debts leaving and eliminating a number of unnecessary cases.”.
Economic expert Tran Dinh Tien said: “The measure banning businesses from leaving the country due to tax debts is too harsh and causes more damage and disruption to the economy than benefits.”.
He said that entrepreneurs who are publicly exposed for violations are prohibited from leaving the country. And local partners do not want to do business with them. As a result, they have no way to restore production and business.
“I think this regulation does more harm than good, especially when the economy is going through an extremely difficult period.”said Tien.
He said that if a businessman goes to prison, it leads to the bankruptcy of his company and the employees lose their jobs. Therefore, severe punishments should be imposed to prevent them from daring or being able to do so.
Thus, when drafting the securities law, experts recommended a fine of 1,000 times the profit for stock manipulation. But this recommendation was not accepted and the law provides for a fine of only VND 500 million. Manipulation of stocks to generate profits of up to VND 100 billion is subject to a fine of VND 500 million.
In his opinion, economic violations should be combated with economic measures to return the embezzled funds. And the penalties should be much higher than the amount of money and property embezzled, so that this type of fraud is not repeated in the future.
In addition, Tran Dinh Tien pointed out that reforms are also needed to improve efficiency and confidence in the resolution of contractual disputes and corporate bankruptcy procedures. It is necessary to establish inter-district and regional economic courts that are independent from the administrative level. Sections for this should be created, including in the Penal Code, while at the same time improving the efficiency of the apparatus.
Source: Rossa Primavera
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