In the coming time, investment capital for infrastructure development is still very lacking, according to calculations, the state budget can only meet 20%. So how to continue calling for capital and mobilizing private investors for this game is still a difficult problem?
In this regard, we had an interview with Standing Member of the Economic Committee of the National Assembly Do Van Sinh.
Sir, recently General Secretary and State President Nguyen Phu Trong requested "do not discriminate against the private economy". As someone who spoke many times about this issue, what do you see from this message?
This means it is time to open all the mechanisms and policies for the private economy to develop. That is the inevitable trend. All developed countries now have to rely on the private economy. For Vietnam, the reality has proved that the state economy is currently less effective than the foreign-invested private and economic economies. So in the long-term orientation, it is necessary to equitize State-owned enterprises (SOEs). The state only keeps the core areas, areas related to national security and defense, national defense, the rest is delivered to private people, people will do better. From such a big orientation, it is necessary to identify the private economy as the backbone, the driving force to build the country "strong and rich people". Accordingly, in each specific policy, the state must aim to implement that goal.
Saying "don't discriminate" means that there is actually discrimination for the private sector. Representing the watchdog in this area, can you generalize what are the manifestations of discrimination?
The first is from the mechanism. Compared with other economic cities, foreign enterprises have been welcome with land allocation is easy, tax exemption... SOEs are also allocated capital and land, while private enterprises have to remove all resources which are accessible to the project and information. Secondly, in principle, the law does not discriminate between economic cities but the implementation method is very problematic. In fact, people, businesses, including private enterprises are allowed to do everything that the law does not prohibit, but in reality, there are many administrative procedures, child licenses... that make it difficult for businesses.
The policy of mobilizing private resources to participate in economic development has been implemented for many years, typically in the field of infrastructure development. But in fact the re-application reveals many problems, causing frustration. Where does the "handshake" between private investors and the state have not yet produced such sweet fruits?
The problem is to reform from the institution. There must be regulations to support private participation in this area in the context of private enterprises still have weaknesses. The National Assembly has enacted the Law on Support for Small and Medium Enterprises, the law takes effect from January 1, 2018, but unfortunately, the promulgation of documents guiding the law is still slow. Therefore, in the short term, it is necessary to implement the law well in order to have active support from the state so that the country has private enterprises with good scale, good capacity, good governance and good operation.
There are many opinions that, during the recent BOT crisis, the fact that the state has not really been with the enterprises so far many investors are "discouraged", others are not assured, ready for the cooperation. next work. And in fact, in the coming period, despite the lack of capital, but the infrastructure projects will still be difficult to call private capital to participate?
In fact, in all recent BOT and BT projects, the state has protection. Firstly, the fare is a state regulated on a revenue basis, at a certain time, if the ticket sale is not enough, the state must give a fare increase or to extend the collection time. money. Then, during the investment process, if the borrower is still charged interest, if the project is delayed, interest will be calculated. However, the story here is the weakness in affiliate activity. Infrastructure projects often require large costs, the implementing units must have good management and organizational capacity, so a small investor will not meet the requirements.
Also about the story of attracting private resources to invest in infrastructure, recently Quang Ninh and local leaders have been in the position of champion for 2 years in the rankings of competitiveness (PCI) shared, know-how. deciding to use the capital from each budget they use to help attract more 8-10 other capital to build an airport, a highway, a bridge, a port... is a commitment to support and maximize investors. What does this story remind you of?
I think that here, the problem is first of all the geographical factors, in which the participation of local authorities is very important. Quang Ninh has cooperated with enterprises, spread red carpet to welcome investors, carry out land clearance and land allocation quickly. After that, this locality also picked people to "choose the golden sender". I know Quang Ninh has chosen a strong strategic investor, such as Sun Group.
In the coming time, investment capital for infrastructure development is still very lacking, according to calculations, the state budget can only meet 20%. So how to continue to call and mobilize private investors to participate in this game when many businesses are discouraged by the "bitter fruits" received?
Need to make more transparent projects. After supervision of traffic BOT projects, the National Assembly has issued a resolution, consistently not doing BOT with renovation projects on the old road and requiring transparency, the project must be appraised. from the stage of project proposal, technical design, total cost estimate... on bidding basis. The authorities are doing it and we have to... wait.
Thank you Sir!
According to Hung Dung – InfoNet