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Private economy: Driving force for market economy development
Ngoc Thuy 10:48, 2017/09/25
Private economic components at provinces are in the majority, which is considered of high potential and being the driving force for provincial development
Vice Chairman of Quang Nam People’s Committee Le Tri Thanh said, at present, the province has more than 5,200 enterprises, in which the private enterprises are 96.8%. Private sector in Quang Nam contributes significantly to the state budget, and is the main reason for Quang Nam to be one of the province with revenue of 20 trillion VND per year.


This result is attained through the effort of private economy and the support of Quang Nam’s local government. As such, the driving force for Quang Nam’s economic growth is the private sector, which is expected to continue maintaining the strong growth in the future. However, private economic development in the province still faces many challenges. Despite there are big enterprises in private sector, this effect has not had big influence on the commnunity, as the majority of private enterprises in Quang Nam are small with limited competitiveness. Mr. Le Tri Thanh said, in recenty years, Quang Nam has put up effort in administrative reform, improving business environment and supporting for the development of enterprises. However, policies supporting start-ups and private economics are not implemented efficiently. At Daknong Province, statistics show that the provincial private economy contributes to 52% of state budget revenue and creates jobs for 92% workforce in the province. According to leaders of Daknong Province, for many years, private economy in Daknong has somehow fulfilled its potential and contributes to the socio-economic development in the province. Especially with the Law of enterpriese, the private sector has efficiently mobilized social resources into production, creating jobs, increasing income and improving living conditions for citizens. Many enterprises have established their brands and contributed significantly to the revenue of the state budget.

However, compared with the objectives, these results are not up to the requirements of the government and also of the Daknong’s local government. Despite the number of private enterprises has increased, however the quality and efficiency of these enterprises are not up to the province’s potential, so that it really becomes the driving forces for the economic development of the province.

According to representatives of Dak Lak People’s Committee, during the development process, private economic development plays an essential role in the socio-economic development of the provinces. Recently, with the support from government for enterprises, the People’s Committee has instructed related administrative agencies actively implementing solutions, with a view to improve the business environment toward transparency, friendly, which can encourage enterprises to invest and develop. Therefore, it is necessary to push forward with administrative reform and improving transparency in administrative procedures, so that enterprises will have the utmost support to flourish.

In order for the private economy to realize its potential and capable to compete with other economic components, all barriers and pre-judments must be removed, as well as creating favorable conditions for private economy to develop. Provinces should finalize policies for private enterprises to flourish. 

The government from central to local should encourage private enterprises to invest and buy shares from state owned enterprises during the process of equitization or divestment. All kinds of production linkages, transferring technologies, market expansion and increasing added value must be implemented. Enterprises must increase efficiency in their self - management in the context of global integration and industrial revolution 4.0. 
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