The Government's drastic policies and directions, and the support of management agencies, have shown that this is the golden time for the private economy to "take off", creating strong growth momentum for the economy.
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| General Secretary To Lam chaired a working session with the Central Policy and Strategy Committee on private economic sector development in Vietnam in early March 2025. (Source: VNA). |
The article “Private economic development - a lever for a prosperous Vietnam” by General Secretary To Lam assessed the successes over the nearly 40-year journey of innovation with very important contributions from the private economic sector.
With nearly one million enterprises and five million individual business households, the private economic sector currently contributes 51% of the Gross Domestic Product (GDP), more than 30% of the state budget, creates more than 40 million jobs, accounts for more than 82% of the total workforce in the economy, and contributes nearly 60% of total social investment capital.
The private economy not only helps expand production, trade and services but also makes an important contribution to improving labor productivity, promoting innovation and increasing national competitiveness.
The General Secretary wrote: “The strong rise of many Vietnamese private enterprises not only dominates the domestic market but also affirms their brands in the international market. This proves that if there is a favorable development environment, Vietnamese enterprises can absolutely go far and compete fairly with the world.”
The time is ripe
It can be seen that never before has the private economy had as many opportunities for development as it does now.
At the Steering Committee meeting on March 15, Deputy Prime Minister Nguyen Chi Dung affirmed that "unlocking" and clearing bottlenecks for the private economic sector to flourish is like "the bricks and stones that have long been obstructing will be removed to let the water flow freely".
Meanwhile, the Central Policy and Strategy Committee realized that this is the time that cannot be delayed any longer to remove barriers and unleash the power of the private economic sector.
In early March 2025, Prime Minister Pham Minh Chinh signed a decision to establish a Steering Committee to develop a private economic development project.
The Steering Committee is responsible for developing breakthrough mechanisms and policies, removing bottlenecks, opening up a strong development roadmap, and encouraging the private sector to participate more deeply in the economy.
Sharing with reporters of the World and Vietnam Newspaper , Associate Professor Dr. Nguyen Huu Huan at the University of Economics Ho Chi Minh City affirmed: "Now is the ripe time for the private economy to break through. The direction of General Secretary To Lam has demonstrated Vietnam's political determination in promoting this sector."
According to Associate Professor, Dr. Nguyen Huu Huan, up to now, the private economic sector seems to have been "asleep" as the country focuses more resources on enterprises with foreign direct investment (FDI).
Looking at the world, there are few powerful countries that do not have a strong private economic sector. For example, when mentioning Korea, people will immediately think of Samsung, LG. Or when mentioning Japan, people will immediately think of Honda, Toyota. These are all powerful multinational corporations. And Vietnam needs to build many such corporations.
Meanwhile, impressed by the 40-year journey of the private economy, Associate Professor, Dr. Tran Dinh Thien, Member of the National Financial and Monetary Policy Advisory Council, former Director of the Vietnam Economic Institute, said that the private economy is in the accumulation stage to reach the transition stage with the times.
Currently, the breakthrough of the private economic sector is an extremely important story.
| "Now is the right time for the private economy to make a breakthrough. General Secretary To Lam's direction has demonstrated Vietnam's political determination in promoting this sector" - Associate Professor, Dr. Nguyen Huu Huan at Ho Chi Minh City University of Economics. |
“It is not just a declaration, but a specific action program with special trust in the institution so that policies and mechanisms for the private economy must have new changes,” Associate Professor, Dr. Tran Dinh Thien emphasized.
Appreciating the Government's change in recognizing the private economy as "the most important growth driver in the economy", Prof. Dr. Hoang Van Cuong, Member of the National Assembly's Finance and Budget Committee, said that recently, the Government has boldly assigned large projects to private enterprises through orders and committed to cutting 30% of unnecessary administrative procedures to create favorable conditions for the development of the private economic sector.
“This is the time for the private economic sector and private enterprises to stand up and take action to break through,” Mr. Cuong emphasized.
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| Currently, the breakthrough of the private economic sector is an extremely important story. (Photo: Nguyen Hong) |
More "unleashing" policies
In order for private enterprises to become the pillars of the economy - in accordance with the spirit of Resolution 10-NQ/TW - Professor Hoang Van Cuong realized that strong support from the State is needed, especially through placing orders.
The North-South high-speed railway project is an example. Mr. Cuong said that assigning investment and production to domestic enterprises will create a strong railway industry, reduce dependence on foreign countries and optimize the efficiency of public investment.
In the coming time, Associate Professor, Dr. Nguyen Huu Huan stated that private enterprises need more policies to "untie" them.
First, the State needs to Eliminate cumbersome policies, regulations and administrative documents that are oppressing businesses and hindering their development.
Second, the State should create an ecosystem to develop areas such as technology or supporting industries. There should be separate policies for supporting industries in Vietnam to develop more.
Third, encourage the FDI sector to share jobs and create material wealth for Vietnam's private economic sector. The FDI sector needs to cooperate more with Vietnam's private economic sector to increase the localization value of exported goods. The government can have regulations and policies for FDI enterprises to transfer technology to domestic enterprises.
"In addition, we should set a goal of how many more leading private economic groups Vietnam will have in a certain industrial sector in the world in the next 10 years. Where there is pressure, there will be motivation. Specific, clear solutions and high political determination from the Government will be the lever to promote the private economic sector, creating a breakthrough in the future," Associate Professor, Dr. Nguyen Huu Huan suggested.
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| The FDI sector needs to cooperate more with Vietnam's private economic sector to increase the localization value of export goods. (Photo: Hoang Anh) |
Disrupt, accelerate and collaborate
In addition to removing external barriers, according to experts, private enterprises themselves also need to proactively innovate, improve competitiveness and develop in a sustainable direction.
From the business side, Mr. Pham Dinh Doan, Chairman of the Board of Directors of Phu Thai Group shared that if a business is 1 day late, it can lose 3 days of opportunity. Private businesses must change from the traditional environment to a new, completely different environment.
In particular, businesses must know how to choose their strengths, focus on the core values of the business, and not spread themselves out or diversify when they do not have enough resources.
Along with that, according to Mr. Doan, businesses must strengthen cooperation. Specifically, if a business is strong in ideas and technology but weak in capital, it can cooperate with a business that is strong in capital but weak in technology, ideas, etc. to jointly seize business opportunities.
The Chairman of the Board of Directors of Phu Thai Group believes that there are three important factors that the Government and businesses need to pay attention to: Breakthrough, acceleration and synergy.
"The synergy between the Government, people and businesses will create momentum for the private economy to develop in the coming time," said Mr. Pham Dinh Doan.
In the coming period, there will be many challenges for private enterprises. However, if they are determined to overcome the initial challenges, the opportunities for enterprises will be enormous. As General Secretary To Lam expected, when the State has appropriate mechanisms, correct policies, and a favorable business environment, the private economy will be nurtured to make a strong breakthrough, soon turning Vietnam into a high-income economy in the next two decades.
Source: https://baoquocte.vn/da-den-luc-thao-chot-khoi-thong-diem-nghen-de-kinh-te-tu-nhan-cat-canh-307961.html
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