On May 23rd, during a discussion session with the National Assembly regarding the country’s economic and social situation, Mr. Nguyen Chi Dung, Minister of Planning and Investment, acknowledged the significant achievements Vietnam has made, which have been highly recognized by the international community.
Minister of Planning and Investment, Nguyen Chi Dung.
However, he also admitted that the situation is challenging, as evidenced by the number of businesses that have closed in the first four months of the year, exceeding the number of new businesses entering the market (over 86,000 businesses closed compared to 81,000 newly established ones).
“We’ve never seen such numbers. Many shops and stores are closing down. When businesses struggle, it means that labor and the people are also affected, and bad debts start to rise,” said Mr. Dung.
He attributed the difficulties to several reasons, among which he identified three main ones: market trust, social psychology, and the willingness to take risks among civil servants. “These are the three main barriers and challenges facing our economy,” he stated.
To overcome these barriers and challenges, Mr. Dung emphasized the need to focus on institutional building to address bottlenecks, implement more robust and decisive administrative reforms, and find solutions to encourage civil servants to take risks and be proactive.
Referring to the example of China, the Minister of Planning and Investment mentioned that the Tesla car factory in Shanghai took only 11 months from its groundbreaking to its inauguration and operation. Similarly, a large shopping center took just six months to build and become operational.
“They work like a storm, while we are stuck in a culture of permission and favoritism, with a lack of decentralization and risk-taking. If we don’t reform quickly, investors will go elsewhere,” Mr. Dung warned.
Vu Hong Thanh, Chairman of the National Assembly’s Economic Committee, during the discussion session. Photo: Nhu Y.
Vu Hong Thanh, Chairman of the National Assembly’s Economic Committee, shared a similar sentiment, stating that the administrative procedures remain sluggish and that a fear of making mistakes and shirking responsibility is still prevalent.
“In the past, decisions were made promptly, but now, everything is checked and double-checked, even with the Party Committee and the Standing Committee of the National Assembly, just to be on the safe side,” Mr. Thanh remarked.
Joining the discussion, Mr. Nguyen Xuan Thang, Director of the Ho Chi Minh National Academy of Politics, raised a question: “When we talk about officials being afraid to make mistakes, avoiding responsibility, or even blaming corruption, why is it that in the same environment, some places are doing well and achieving high growth?”
He suggested that if other sectors displayed the same determination as the express highway sector, there would undoubtedly be significant development.
