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Private sector thrives despite global crisis
The private sector has seen healthy growth over the past two years despite the global recession, Deputy Prime Minister Nguyen Sinh Hung said on Tuesday in remarks to the preliminary conference on implementation of the Party Central Committee's 5th Resolution on renewal and development of the private sector.
Private enterprises have developed in both quality and quantity, successfully attracting investment and human resources, creating jobs and tax revenues, and contributing to economic growth and improving living standards, Hung said.
According to a report on the development of the private sector introduced at the conference, the non-State sector contributed nearly 47 per cent of gross domestic product (GDP) in 2008, and taxes paid to the State budget by private businesses had increased from 6 per cent in 2002 to 11 per cent in 2008.
More than 5 million new jobs were created by the sector during the past seven years, the report said.
But, Hung emphasised, there was still inadequate awareness of the role of the private sector. Development of the sector remained spontaneous and scattered, and policies to create favourable conditions for the sector to develop were still limited or impractical, he said.
A number of State agencies had failed to fulfill their role in promoting administrative reform and development of the sector and continue to under-utilise information technology.
Also addressing the conference, Politburo member and permanent member of the Party Central Committee Secretariat Truong Tan Sang urged Party organisaions, the Viet Nam Fatherland Front and authorities at all levels, as well as private enterprises, to make proposals and recommendations in terms of laws, policies and regulations to help the private sector overcome disadvantages.
Government, ministry and local action plans for development of the sector needed to be updated, Sang said, to more effectively implement the Law on Enterprises and Law on Investment and eliminate overlapping or unsuitable regulations.
He also emphasised the importance of amending land use regulations to meet business needs, as well as amending the Law on Tax Management to simplify administrative procedures and establish suitable accounting standards for small- and medium-d enterprises.
The rights of workers and employers in private sector also needed to be ensured with changes needed to be made to the labour laws, Law on Social Insurance and Law on Vocational Training.
Further study was needed to create a law on occupational safety and hygiene, he said, and a national programme to support and improve human resources quality needed to be instituted.
The use of information technology in business management also needed to be advanced, Sang said, and authorities needed to work to properly ensure fair competition among business entities, encouraging co-operation among private, State-owned and foreign-invested enterprises.
Party instruction and Government administration of the private sector needed to be strengthened, with authorities at all levels creating favourable conditions for the private sector while ensuring strict supervision over the sector's business activities and effectiveness.
Lastly, Sang said, the private sector needed to be more proactive in overcoming difficulties and weakness and taking advantage of their own potential to further develop and contribute to the nation's process of industrialisation and modernisation.
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