The amount of money left in the public is very large.”

Instrument The Senior Lieutenant General, Minister of Public Security, said: “Trillions of billions of dong in betting poured into this year’s football season. Trillions of dong are easily mobilized by multi-level business organizations… showing that the amount of money outstanding among the people is very large.” This is a completely correct phenomenon and Minister To Lam’s comments are not wrong.

But why did his statement attract such special attention? There are activities from the perspective of a police general like Mr. To Lam that are actually crimes. For example : Gambling, betting, multi-level marketing has transformed (into a scam)…But there are activities that are actually business services but are outside the mainstream: Debt collection, debt foreclosure, loan sharking, pawnbroking, brokerage service broker… in which there can be thousands, tens of thousands, even millions of individual business households (many of which are not registered businesses) have participated.

Even the evils Prostitution, from the perspective of the police, is an evil that needs to be eliminated. But the persistent and quite vibrant existence of a series of large prostitution venues such as in Do Son (Hai Phong) and Quat Lam (Nam Dinh) )…in essence, it is also a type of service that can be bought and sold to serve a need that always exists in life. The only thing is that it is not admitted to not paying enough taxes to the State.

All of these activities have long been called “underground economic” activities by economic experts, but are now Currently, many relevant ministries and branches in Vietnam are still unable to manage it. According to a research project in the Economic Development Magazine by Mr. Vo Hong Duc, an expert from the Economic Management Committee of Perth, Australia on the “underground” economy in Vietnam and some countries in Asia in 2015, the Vietnam’s “underground” economic model, at the lowest level, must account for 16.9% of GDP, the average level is 29.2%, and the highest level will account for nearly 60% of GDP.

So even though At the lowest level, the scale of the “underground economy” in Vietnam is among the highest in Asia. According to economists, the “underground” economy is not entirely black. It is a flexible economic area that creates many jobs and generates income for a large number of people. But its downside is also very big: Tax evasion and tax evasion disables state management, creating a land for corrupt and criminal civil servants to run rampant…

The “underground economy” The more the informal economic sector swells, as economists call it, the more unstable the official economic sector becomes, leading to certain social consequences. In Vietnam, this situation has been proven for many years.

In the statement yesterday afternoon by Minister To Lam, it actually also mentioned certain inefficiencies in current state management. . He said: “The activity of debt sequestration and debt collection creates groups of thieves and robbers, giving rise to more criminal gangs that are expanding their living space.”

He also explained himself: “That’s it.” This is because the debts paid to state agencies cannot be collected, while hiring debt collection “services” can be collected. “If criminals can collect debt, it means the state cannot handle it. The people’s frustrations are real,” Senior Lieutenant General To Lam emphasized.

A main reason why the large “underground” economy in Vietnam is difficult to control is the environmental economic institution. Business is currently not favorable and there are too many legal barriers and risks. As earlier this week, the Government held a meeting to discuss draft decrees on business conditions and discovered that there were up to 3,500 business conditions, most of which were illegal “sub-licenses”…

Because of the unfavorable barriers from such policies, many business households today do not dare to invest in official investment channels but instead risk putting money into service activities that can give Quick profit, quick capital recovery: Real estate is a scam, they lend at high interest rates… Therefore, in recent times, there have been many cases of multi-level business scams… victims number in the tens of thousands. ten thousand people.

General To Lam said it right: “Idle money among the people is very large. The problem is how to mobilize for production and business.” But dear Minister: We often say that people are still poor, but in reality, it’s not just money in foreign currencies: US dollars, Euros… and assets of great value: gold, silver, real estate… among the people. very big. As for foreign currency, remember that every year, remittances transferred back to the country alone amount to 11-12 billion USD and most people do not deposit them in banks (because the deposit interest rate is 0%).

One As soon as an important major road opened, there were immediately thousands of projects: Hotel shops… large and small were invested in and built along both sides of that road, immediately showing how quick people are to invest and when needed. They mobilize capital very quickly.

The state has tried to mobilize the above resources through all kinds of projects but all have failed. Only when economic institutions are strongly reformed and the business environment is truly open, promoting free and competitive business, will investment in projects that the state mobilizes be truly effective and beneficial to people? When people use cash, those huge resources from the people will “flow” into official investment channels to promote economic development.

Manh Quan