Current policy to support and develop small and medium-sized enterprises in Ho Chi Minh City (Vietnam)
- April 21, 2022
- Posted by: rsispostadmin
- Categories: IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue III, March 2022 | ISSN 2454–6186
Phan Thi Thuy Trang
Ly Tu Trong College, Ho Chi Minh City, Vietnam
Abstract: During more than 35 years of renovation, Vietnam has always been steadfast and consistent in its development of a socialist-oriented market economy with many forms of ownership, different economic sectors, forms of business organization and distribution form. Implementing the viewpoints and guidelines of the Communist Party of Vietnam, the Government of Vietnam has adopted many policies for the synchronous development of all economic sectors, creating favorable conditions for all economic sectors to operate equally before the law, long-term mutual development, cooperation and fair competition. At the 23rd session of the People’s Council of Ho Chi Minh City, term IX, group discussions and discussions in the hall were held on the socio-economic situation in 2020 and tasks and solutions in 2021. Delegates of the People’s Council of Ho Chi Minh City basically agreed with the Report on the socio-cultural development situation in 2020 and the tasks and solutions for 2021 of the People’s Committee of the city. Ho Chi Minh City, in which, identifies the theme “The year of building urban government and improving the investment environment” (People’s Committee 2021).
Keywords: Development policy, small and medium enterprises, Ho Chi Minh City, solutions, development.
1. MAKE A PROBLEM
In order to develop the private economy in the new situation, at the Fifth Conference, the 12th Party Central Committee issued Resolution No. 10-NQ/TW dated June 3, 2017 “on economic development private sector has become an important driving force of a socialist-oriented market economy”. After nearly two years of implementing the Resolution, the private sector has developed rapidly and plays an increasingly important role in the economy, especially in contributing to economic growth, trade and investment. The private economy contributes to increasing the state budget, creating jobs, and improving social security.
Small and medium enterprises are an important part of the private sector and account for a large proportion of the business community in Vietnam. Currently, the whole country has about 541,753 small and medium-sized enterprises operating in the economy, with a total registered capital of about 130 billion USD, accounting for about one third of the total registered capital of enterprises (Ministry of Planning and Investment 2019, p.26). Every year, small and medium-sized enterprises contribute about 40% of GDP, pay 30% to the state budget, contribute 33% of industrial output value, 30% of export value and attract nearly 60% of employees. Although the number of small and medium-sized enterprises is large, the size of small and micro enterprises accounts for a very large proportion, the number of medium-sized enterprises only accounts for 1.6% of the total number of small and medium-sized enterprises. Because of its small size, the operation of this business sector is facing many difficulties, such as the ability to access capital sources to invest in modern machinery and technology to serve production and business; lack of experience in business administration; ability to compete, dominate the market right in the domestic market. In the coming time, it is necessary to have effective solutions so that this business sector, although very dynamic, but also vulnerable, has a rapid and sustainable development in the new context.
2. CONTENTS
2.1. Breakthrough policies to support businesses of the Government and Ho Chi Minh City
The Law on Supporting Small and Medium Enterprises, passed by the National Assembly of Vietnam in 2017 (Law No. 04/2017/QH14) is an important milestone affirming the commitment of the Party and State of Vietnam to prioritize the development of small businesses and medium-sized enterprises, domestic private sector enterprises have become an important driving force for economic development. According to statistics, small and medium enterprises currently account for 97% of the total number of operating enterprises, contributing up to 45% of GDP, 31% of total budget revenue and attracting more than 5 million employees. The small and medium-sized enterprise sector is increasingly effective in mobilizing social resources for development investment and contributing to the state budget, promoting national economic development, creating dynamism and competition for the economy. With the above contributing role, in 2020, the number of newly established enterprises (including small and medium-sized enterprises) registered for establishment will decrease, the number of enterprises dissolved and ceased business will increase compared to the same period in 2019, significant impact on the socio-economic development of the country. In the first 4 months of 2021, there were many positive signs with nearly 19.3 thousand businesses returning to operation, showing that businesses’ ability to flexibly respond to the epidemic situation has improved markedly. , are positive signals about business development prospects in the coming time.
