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Vietnam should build ‘national corporations’ to boost growth

ANN/THE STAR – Experts have emphasised the importance of fostering the growth of national corporations in Vietnam to drive economic development.

Enhancing enterprises, particularly large corporations, is seen as vital for boosting production capacity and establishing an independent economy.

Amid the challenges posed by the COVID-19 pandemic and global economic downturn, there is a call to amplify their role to stimulate the Vietnamese economy, as noted by the Ministry of Planning and Investment.

The ministry said that Vietnam has orientations to develop national enterprises and large-scale enterprises to play leading roles in key industries and fields and be capable of performing strategic tasks leading the industrialisation and modernisation process.

These policies demonstrate the message of the party and the government that Vietnam will develop a business community with unique identities and brands to build an independent and self-reliant economy, Planning and Investment Minister Nguyen Chí Dung said.

International experience from countries which achieved success in industrialisation have shown that large corporations and national corporations played an important role in the early stages of economic reform.

They would help create an ecosystem to lead the development of small and medium enterprises (SMEs) and enable participation in the domestic and international value chains.

According to Tran Toan Thang from the ministry’s Development Strategy Institute, the 500 largest private enterprises in Vietnam have an average workforce 160 times higher and total assets 376 times higher than the rest of the private sector.

Despite accounting for a modest 0.075 per cent of the total number of private enterprises across the country, the top 500 have been creating jobs for 12 per cent of the labour force, have 28 per cent of the total assets, 18 per cent of revenue and contributed 18.4 per cent of the state budget from the private sector.

A farmer at a lettuce farm near Hanoi, Vietnam. PHOTO: AFP