Illustrative image (Photo: VNA)

Released on March 25, the directive underscored the pivotal role of the private sector, particularly SMEs, which constitute 98% of all active businesses in the country. They are the backbone of Vietnam's economy, contributing over 50% of the GDP, generating 30% of total state budget revenue, and providing more than 40 million jobs, a colossal 82% of the nation's workforce.

To unlock this potential, PM Chinh has outlined a comprehensive plan designed to facilitate the development of SMEs, especially innovative startups. The plan focuses on enhancing competitiveness in value chains, advancing digital transformation, and championing green transition. By fostering new business models, advancing technology adoption, and fast-tracking digital innovation, Vietnam aims to create an ecosystem where SMEs can thrive.

The directive called on ministries, agencies and localities to adopt a “people-first” mindset, placing businesses and citizens at the heart of their efforts. Recognising their challenges as shared ones, the focus must be on refining policies and laws, streamlining administrative procedures, and creating a fair, transparent, and pro-business environment.

This year alone, administrative processing times will be slashed by at least 30%, while compliance costs and unnecessary business conditions will be cut by the same margin. A significant shift from pre-approval management to post-audit oversight will be deployed, backed by stricter monitoring and supervision measures.

Other specific tasks were also assigned to the ministries of finance, science and technology, industry and trade, alongside the State Bank of Vietnam, the Vietnam Association of Small and Medium Enterprises, and various business and industry associations./.