Unlocking Private Sector Innovation: A Boundless Approach to Economic Growth

This was the Prime Minister’s second meeting in two consecutive days on this important topic. The meeting was attended by Central Committee members: Deputy Prime Ministers Tran Hong Ha, Le Thanh Long, Ho Duc Phoc, and Nguyen Chi Dung; Minister and Chairman of the Government Office Tran Van Son; and leaders of ministries, sectors, and agencies.

According to the report by the Ministry of Finance

– the agency in charge of drafting the National Assembly’s resolution, the tasks and solutions outlined in Resolution 68 need to be institutionalized into three groups.

Group 1 includes tasks and solutions with relatively clear content, a sense of urgency, and the need for immediate institutionalization or amendment within the authority of the National Assembly and not within the scope of laws to be discussed at the 9th session of the 15th National Assembly. For this group, the Ministry of Finance proposed drafting a National Assembly resolution with specific policy groups.

Group 2 includes tasks and solutions with relatively clear content that need to be institutionalized or amended and fall within the scope of laws that are being amended and supplemented, expected to be passed by the National Assembly at the 9th session of the 15th term.

These draft laws include: Law on Cadres and Civil Servants; Law on Bidding, Law on Investment in the Form of Public-Private Partnership; Law on Investment, Law on Public Investment; Law on Enterprise Income Tax; Law on Science, Technology, and Innovation; Law on Digital Industry; Law on Handling of Administrative Violations; and Law on Credit Institutions.

Group 3 includes tasks and solutions that are directional and not urgent, requiring time for careful research and evaluation before proposing the development or amendment of related laws to be submitted to the National Assembly for consideration and approval.

At the meeting, delegates focused on discussing and providing feedback on the content, especially the specific policy groups in the draft National Assembly resolution on special mechanisms and policies for private sector development: Some principles for inspecting and examining businesses and business households; streamlining business bankruptcy procedures; principles for handling violations in production and business activities of enterprises and business households; support for accessing land and production premises in industrial parks, industrial clusters, and incubators;…

The delegates also provided opinions on policies: Support for renting houses and land that are unused public assets at the locality; expanding the scope and activities of the Small and Medium Enterprise Development Fund to increase capital for the private sector; financial support for green transition; improving the quality of human resources for businesses; assigning enterprises to implement key and important national projects; tax incentives for innovation and startups; tax policies for business households; support for building digital platforms, shared software, and consulting and training services for small, micro, and household businesses, and individual businesses; support for the development of pioneering enterprises with international reach.

Encouraging Everyone to Start Businesses and Make Legitimate Profits

Speaking at the meeting, Prime Minister Pham Minh Chinh acknowledged and highly appreciated the Advisory Council for Policy, which, despite being newly established, has effectively utilized the rich experience, profound knowledge, and dedicated spirit of its members, making significant contributions to the Government and Prime Minister’s direction and administration. Many of their insights are practical and valuable for perfecting and submitting the Proposal and Resolution on private sector development to the Politburo.

According to the Prime Minister, the world situation has been rapidly changing, complex, and unpredictable, requiring agility, flexibility, timeliness, and appropriate policy responses. Domestically, we have organized historical Central Committee conferences to discuss historical issues; vigorously promoted a revolutionary reorganization of the apparatus; and aimed for economic growth of 8% in 2025 and double digits in the following years.

The Government has submitted to the Politburo for issuance the Resolutions on the “strategic quartet”, including: Resolution No. 57-NQ/TW on breakthrough development in science, technology, innovation, and digital transformation; Resolution No. 59-NQ/TW on international integration; Resolution No. 66-NQ/TW on innovation in law building and enforcement; and Resolution No. 68-NQ/TW on private sector development.

Along with this, we have promoted the improvement of mechanisms, policies, and laws, including submitting 44 draft laws and resolutions (the highest number ever) to the 9th session of the 15th National Assembly; completed documents and prepared for Party Congresses at all levels, towards the 14th National Party Congress.

The Prime Minister emphasized the urgent need to institutionalize the Politburo’s Resolution and develop a National Assembly resolution to promote the rapid and sustainable development of the private sector. The contents of the “strategic quartet” in the Politburo’s Resolutions will have a positive synergistic effect when implemented synchronously and methodically.

The draft National Assembly resolution should focus on the most pressing issues that need to be addressed immediately and are of great concern to the people and businesses, with both a sense of urgency and long-term vision, but not yet included in the draft laws.

According to the Prime Minister, the mechanisms and policies must be “leveraged and supportive”, relevant to the current situation, and create a sense of excitement, fostering confidence, self-reliance, self-respect, and self-pride in development; effectively exploiting and utilizing all resources, and maximizing innovation; promoting production and business activities, economic growth, job creation, and livelihood for the people.

“There is no limit to innovative development of the private sector for the goal of a rich people, strong country, democracy, fairness, and civilization of our country in the new era,” emphasized the Prime Minister. To develop the private sector as the most important driving force of the national economy, the State must be an innovator, people the foundation, businesses the center, and institutions, mechanisms, and policies the driving force.

Analyzing and emphasizing some contents to perfect the draft resolution, the Prime Minister pointed out the need for mechanisms to remove difficulties and obstacles that are hindering the development of the private sector; creating a trend and movement for the development of private enterprises, encouraging everyone to start businesses and make legitimate profits.

Along with this, mechanisms and policies should be strong enough to enable large economic groups to participate in global supply chains and become multinational corporations; encouraging and creating favorable conditions for business households to become enterprises, micro-enterprises to become small enterprises, small enterprises to become large enterprises, and large enterprises to become even larger.

Review and ensure the right to own property, the right to free enterprise, fair competition, equal access to resources, capital, land, and public assets; promote public-private partnerships. Human resource training policies must be based on market demand and the development requirements of enterprises, combining closely between enterprises and schools and training institutions.

The Prime Minister also directed to clarify the content of assigning tasks and placing orders with enterprises, with the spirit of “right role, right script” based on the Party’s leadership, State management, Government administration, People’s mastery, and the supervision of the Fatherland Front and socio-political organizations; promoting clear delegation; designing tools to enhance supervision and inspection. The assignment and placement of orders are not limited in terms of fields or project/work scale.

The draft resolution also needs to further clarify and emphasize mechanisms and institutions related to intangible assets, brands, and intellectual property.

Especially, to ensure peace of mind for people and businesses in investment, production, and business activities, it is necessary to concretize the content in Resolution 68 on “complying with the principle of distinguishing between criminal liability and administrative liability, between legal entities and individuals in handling violations”.

The Prime Minister also noted to consider adding content on credit guarantees for small and medium-sized enterprises; encouraging private investment funds; simplifying business registration and dissolution procedures to be the simplest, fastest, and lowest cost, and especially eliminating the mechanism of “asking – giving”; clarifying tax policies towards simplification of procedures and encouragement of business development; enterprises have both responsibilities and obligations; promoting the use of e-invoices initiated from cash registers.

Regarding the progress, the Prime Minister requested urgent consultation with the business community, members of the Government, and Chairpersons of the People’s Committees of provinces and centrally-run cities; and submission to the National Assembly for approval before May 18.

Ha Van