Upholding market principles during the process of state management is essential for Vietnam to develop a socialist-oriented private economy.

Prime Minister Nguyen Xuan Phuc at the meeting. Photo: Quang Hieu

Prime Minister Nguyen Xuan Phuc gave the remarks at a government meeting on February 18, discussing a proposal to reform state management in economic field and turn the private sector into a key driving force for growth.

“It is important to create room for all economic components to grow equally, especially the private sector,” stressed Phuc, who acknowledged there remain restrictions limiting the sector to bring into full play its growth potential.

“In this circumstance, reforming state management would help ensure greater sustainable economic development,” he said.

Minister of Planning and Investment Nguyen Chi Dung. Photo: Quang Hieu

Giving a more detail look on the proposal, Minister of Planning and Investment Nguyen Chi Dung said the government plans to complete transforming state management in a comprehensive way towards a digital government by 2030, including a shift from controlling to managing and enabling; from direct to indirect intervention; from precheck to postcheck .

“Such changes would be in line with international practices and create a more favorable business environment to ensure stronger growth of the private economy,” said Dung.

According to Dung, the process of policy-making must take into account market mechanism, while maintaining publicity, transparency and fair treatment among enterprises, organizations regardless of their ownership status.

“There would be a new mindset in the inspection activities by adopting a risk management approach and modern technologies during this process to save cost,” he noted, adding it is imperative that the authorities would not criminalize civil disputes.

PM Phuc suggested over the past few years, the private sector has been on the rapid rise with the emergence of large-scale corporation and contribute a big part in economic development.

“Domestic and global situation, natural disasters, climate change, the Covid-19 pandemic and technological advancement under the Industry 4.0 are new factors that could affect the country’s development course,” said Phuc.

“The most important issue at this moment is to address difficulties for the business community, including the private sector, while create favorable conditions for private companies to feel secure and commit long-term business in the country,” he stressed.