Vietnam Analyzes Private Sector Growth Bottlenecks, International Conference Held to Address Funding and Talent Shortages

Efforts are underway in Vietnam to resolve the 'bottlenecks' of funding and talent shortages that are hindering the sustainable growth of the private sector. On September 18, the Academy of Finance, in coordination with Kasetsart University (Thailand), Swinburne University (Australia), the National Institute for Economic and Financial Policy (NIEF), and the Institute for Development Policy, organized the Eighth International Scientific Conference themed 'Finance and Accounting to Promote Rapid and Sustainable Development of the Private Sector.' The conference emphasized the importance of creating a safe and sufficiently broad space for private enterprises to grow autonomously. This aligns with the recognition that the private sector is a crucial driver of economic growth within Vietnam's 'socialist-oriented market economy,' as championed by the Communist Party of Vietnam. However, many private enterprises, particularly SMEs, continue to face difficulties in accessing funding. Access to bank loans is often limited, with high collateral requirements and interest rates being cited as burdens. Furthermore, shortages of highly skilled personnel, especially in the digital economy and advanced technology sectors, are severe, acting as a factor hindering companies' innovation capabilities and international competitiveness. Proposals from conference participants called for reforms in the financial system, improvements in the investment environment, and strengthening of human resource development programs to create new opportunities for private enterprises to achieve breakthroughs. Additionally, measures to enhance the role of business associations and boost the private sector overall were advocated. The Vietnamese government aims to increase the overall economic growth rate and improve people's livelihoods by unleashing the vitality of the private sector. The discussions at this conference are expected to provide important insights for future policy formulation.