More than a year after the implementation of the Politburo's Resolution 68-NQ/TW on private sector development (Resolution 68), the policy has helped create a more favorable investment and business environment for the private sector.
However, at a survey conference organized by the Vietnam Fatherland Front Committee of Ho Chi Minh City on July 7, many businesses said a significant gap remains between policy and implementation, preventing many measures from achieving their expected results.
Businesses moan that barriers still remain
Chairwoman Ly Kim Chi of the Ho Chi Minh City Food and Foodstuff Association said businesses expected the reform spirit of Resolution 68 to be reflected consistently in every law, decree, circular and throughout the implementation process. If progressive policies result in additional administrative procedures, expanded pre-inspection requirements or higher compliance costs when translated into regulations, businesses will be reluctant to make long-term investments.
Based on their operating experience, businesses said current bottlenecks fall into three main areas including limited access to financing, persistently high production and logistics costs, and policy implementation that has yet to match the reform objectives of Resolution 68.
Businesses said access to capital remains a major challenge. Although interest rates have shown a downward trend, many small and medium-sized enterprises still have limited access to credit because lending continues to rely mainly on collateral, while cash flow- and business performance-based lending models have not been widely adopted.
Le Tan Nam, general director of Southern Power Construction JSC, said many businesses are still borrowing at interest rates of nearly 10 percent a year, making financing costs a continued burden as consumer demand and market conditions have yet to fully recover.
Production and logistics costs also continue to weigh heavily on businesses. According to Chairman Phung Quoc Man of the Ho Chi Minh City Handicraft and Wood Processing Association, exporters are facing not only financing and tax refund difficulties but also logistics costs accounting for 17 percent to 20 percent of product costs, while shortages of skilled workers are becoming increasingly severe. Unless these bottlenecks are addressed promptly, businesses will struggle to improve their competitiveness.
Regarding the business environment, many companies urged authorities to accelerate the digitalization of administrative procedures, ensure consistent policy implementation among government agencies and quickly finalize new regulatory mechanisms.
Chairman Pham Van Xo of the Ho Chi Minh City Export Association said a considerable gap remains between policy and implementation, with customs, tax and logistics regulations still falling short of facilitating business operations.
General director Vu Van Thanh of SPHACY Company said technology companies still lack mechanisms for valuing intellectual property, sharing data and operating regulatory sandbox models, limiting the effectiveness of many support policies.
Businesses urge effective implementation of Resolution 68
In light of these shortcomings, businesses said the priority is not to introduce more new policies but to ensure that Resolution 68 is implemented consistently, effectively and in a meaningful way.
Chairman Nguyen Vinh Huy of the Saigon Central Area Business Association said policymakers should shift from broad-based support to policies tailored to individual industries, while establishing regular dialogue mechanisms to resolve business difficulties so companies can access support during their day-to-day operations.
Representing small and medium-sized enterprises, Chairman Tran Hong Anh of Novatech Group proposed strengthening the Credit Guarantee Fund by evaluating business performance and cash flow rather than relying solely on collateral. He said small businesses do not need subsidies but require a flexible mechanism that allows them to access financing, invest in technological innovation and pursue digital transformation.
Many businesses also called for further reductions in compliance costs by accelerating the digitalization of administrative procedures, standardizing policy implementation across government agencies, improving policy transparency, investing in logistics infrastructure, developing human resources and expanding the domestic market to enhance competitiveness.
SPHACY Company general director Vu Van Thanh also proposed publishing administrative reform performance indicators, launching regulatory sandbox mechanisms as soon as possible and strengthening data sharing between government agencies and businesses to ensure support policies are effectively implemented.
Concluding the conference, Truong Thi Bich Hanh, member of the Standing Committee of the Ho Chi Minh City Party Committee and Permanent Vice Chairwoman of the Vietnam Fatherland Front Committee of Ho Chi Minh City, said most businesses viewed Resolution 68 as a sound policy that has strengthened confidence and created new opportunities for private sector development.
However, she acknowledged that many support policies have yet to deliver the expected results, making it necessary to continue reviewing, refining and improving their implementation. All opinions presented at the conference will be compiled to support oversight of Resolution 68's implementation and to recommend further policy improvements to the relevant authorities.
The Vietnam Fatherland Front Committee of Ho Chi Minh City will continue monitoring the handling of businesses' recommendations to ensure that the Party's policies are effectively put into practice.
