The Nation’s Mega Projects Need Private Enterprise ‘On Board’

Lack of Breakthrough and Cascading Incentives

Speaking at the Conference of the Government’s Standing Committee with major private enterprises on September 21st, Mr. Nguyen Chi Dung, Minister of Planning and Investment, stated that in nearly 40 years of implementing the renewal policy, with the correct guidelines and policies of the Party and State, Vietnam now has over 930,000 operating businesses. Among them, a large force of private enterprises has emerged, accumulating sufficient capacity in terms of capital scale, technological level, and enterprise management, including well-known brands in the regional and global markets. These enterprises have become an important driving force for the economy, such as Vingroup, Thaco, and Hoa Phat Groups.

However, Mr. Dung also frankly assessed that private enterprises have not truly become the leading force of the economy as expected. The investment rate in leading and motivating sectors, especially in new areas such as clean energy production, chips, microchips, and hydrogen, remains low.

The operations of large enterprises are relatively independent, and their connectivity, spillover effects, and leadership are not evident. This is reflected in the low percentage of small and medium-sized enterprises participating in the supply chains of large domestic and foreign-invested (FDI) enterprises. Large businesses have not fully played their pioneering and leading roles in the development of small and medium-sized enterprises and the economy.

Regarding the reasons, Mr. Dung attributed it to certain obstacles and inadequacies in the institutional and legal framework. The delegation of authority, decentralization, and reduction of administrative regulations and procedures have not been thoroughly implemented.

Investing in Semiconductors, AI, and Large Infrastructure is Necessary

According to the Minister of Planning and Investment, the private sector, particularly large private enterprises, currently holds substantial resources in terms of capital, assets, technology, and high-quality human resources. As of the end of 2023, the total assets of the large private enterprises present at today’s conference reached approximately $70 billion.

“Mobilizing this wealth of assets, along with technology, knowledge, management skills, and high-quality human resources of these enterprises, will add significant strength to the economy and contribute to ensuring the autonomy of the country’s economy,” said Mr. Dung.

Referring to the goal of becoming an industrialized modern country with a high middle income by 2030 and a developed, high-income country by 2045, the Minister of Planning and Investment raised the question of what the large enterprises think of the country today. He asked about their beliefs, expectations, and desires. He also inquired about the tasks the Government could assign to large enterprises and what resources and mechanisms would be provided.

In addition to their business activities aimed at revenue and profit, Mr. Dung suggested that large enterprises should collaborate with large state-owned corporations and groups to invest in new areas of the Fourth Industrial Revolution, such as electric vehicles, semiconductor industries, artificial intelligence (AI), high-quality and low-emission agriculture, and more.

Large enterprises are expected to participate in significant national projects, including the North-South high-speed railway, urban railways, the Vientiane-Hanoi highway, the Vientiane-Vung Ang railway, renewable energy, and offshore wind power.

“The Government hopes that enterprises will promote their pioneering spirit and proactively work with the Government to achieve success in socio-economic development,” concluded Minister Nguyen Chi Dung.