ASEAN KEY DESTINATIONS
Private sector is 29 percent of Vietnam's budget
They also created more jobs than state-owned companies. Pham Viet Muon, deputy head of the Government Office and deputy head of the Committee for State-owned Enterprises Renewal and Development, said the development model in advanced countries had proved that the private sector was very important for economic growth. The government needed to provide opportunities for the private sector to invest more in infrastructure, education and other key sectors, he added.
Pham Thu Hang, head of the Vietnam Chamber of Commerce and Industry's Enterprises Development Foundation, said though the Government had been trying to tweak the legal system to ensure all companies were equal before the law, private companies still remained at a disadvantage when trying to obtain raw materials, markets, capital, and especially land.
Around 90 percent of state-owned companies are allocated land for their business while 51 percent of private businesses have to use their owners' houses and another 31 percent have to rent their premises, according to the Enterprises Development Foundation.
Phung Anh Tuan, deputy chairman of the HCM City Young Entrepreneurs Association, said to create a level playing field for private and state-owned companies, the legal system had to be amended and new regulations issued.
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