Argentine media hails SMEs’ contributions to Vietnamese economy
VOV.VN - Renowned Argentinian newspaper Infobae recently ran an article by economist Damián Di Pace about the contributions of small and medium-sized enterprises (SMEs) to Vietnamese economic growth after he visited the nation.
According to the article, the Doi Moi (Renewal) process pursued by the Communist Party of Vietnam in 1986 has seen the country record the highest economic growth rate in the world during the past three decades.
The market economic model under state management has intensified the activities of private companies and enterprises, as well as attracting greater foreign direct investment throughout the 1990 to 1997 period. Following this, the Vietnamese economy posted an annual average growth rate of 8% and 7% in the 1999 to 2022 period.
In this process, SMEs have played a key role, especially in structural transformation which has resulted in a shift in labour productivity from a low level to a high level. The Doi Moi process also fueled the growth of SMEs, which today account for 95% of businesses operating in the Vietnamese market and half of the manufacturing workforce, thereby contributing 40% of gross domestic product (GDP), the article said
The author highlighted the State's attention and support policies for SMEs, as well as the role of foreign-invested enterprises as part of the Vietnamese economy.
Furthermore, the Vietnamese Government follows an orientation to develop supporting industries, particularly sectors like garments and textiles, footwear, electronics, cars, machinery, and high technology. It also has financial and tax policies specifically aimed at supporting domestic SMEs to develop and improve competitiveness.
The article cited forecasts made by consulting firm PwC which said Vietnam, India, and Bangladesh will be the three countries with the fastest economic growth rates in the world from now to 2050, at an annual rate of 5%.
Concerning the relations between the nation and Argentina, the article emphasised that the Vietnamese side is an important trade partner of the Latin American country. Last year, the nation imported about 5.5 million tonnes of agricultural products from Argentina.
The author also noted that the Vietnamese socialist-oriented market economy adheres to both principles, largely focusing on economic growth and always paying attention to social issues. The country has therefore been stepping up efforts to build a good social security and public service system, ensure fairness, narrow the gap between the rich and the poor, and approach hunger eradication and poverty reduction.
He cited a report from the UN Development Program (UNDP) which said that within 10 years from 2012 to 2021, the poverty rate in the country fell from 18.1% to only 4.4%. In line with this, Vietnamese income per capita surged from US$96 in 1989 to US$4,163 today, one of the highest increases in the world.
However, the article also mentioned the challenges that the nation has to solve in the process of economic development,, such as a cumbersome state administrative apparatus, bureaucracy, corruption, economic growth’s heavy reliance on foreign-invested enterprises, expensive office rents, and a lack of highly skilled labourers.
