Thanks to Dr. Matthias Duhn on LinkedIn, for sharing the link to the interview with the Minster of Planning and Investment. The original interview ran in Vietnam Investment Review, here, and is a reassuring assessment of the private sector economy.
One of the highlights of the article, and I’ll let you read it for yourself, is that the private sector is one of the larger elements contributing to GDP in Vietnam. It is also a major element of investment capital contributed to the investment economy in the last two years.
Perhaps the most important part of this interview is the fact that the Minster of Planning and Investment realizes the difficulties facing private sector economies in Vietnam. While there are many benefits set up for FDI and PPP investments, there is little in the way of incentive for private sector investments, nor has there been much of an attempt to eliminate red tape and bureaucratic obstacles.
In fact, he said,
the state needs to continue boosting administrative reforms and improve the domestic business climate more effectively and practically.
This would make it more favourable for enterprises to join the market at a lower cost and develop quickly.
The state is also looking to bring more transparency and attractiveness to all mechanisms and policies for enterprises, so that they can boost innovation and creativity and approach new technologies. I would like to stress this point because the Fourth Industrial Revolution and the digital economy are creating immense opportunities for nations like Vietnam to make breakthroughs in development, thanks to new production methods and new business models.
This is interesting, that as a highly placed minister he is conscious of the position the Vietnamese government plays in the development of the private sector economy. This, like the startup economy, is one area where the government is just now seeing the benefits of growth and incentivization. With luck we’ll see a boom in private capital investment, and the development of a bureaucratic infrastructure that will allow for the rapid growth of an economic sector.