Private enterprises need to have proper investment to develop.

After nearly 40 years of renovation, the country now has over 940,000 private enterprises in operation, more than 30,000 cooperatives and over 5 million business households. The private enterprise force has increasingly affirmed its position and important role in socio-economic development, industrialization and modernization of the country; contributing about 50% of the country's GDP. This shows that the private economic sector has been an important driving force for the country's development in recent times.

Currently, the private economy is developing widely throughout the country, making important contributions to economic development, mobilizing social resources for production and business, creating more jobs, improving people's lives, increasing the state budget and contributing to maintaining political stability and social security of the country.

Currently, the whole country has nearly 1 million officially operating private enterprises and 5 million business households.

Currently, the country has nearly 1 million officially operating private enterprises and 5 million business households. In particular, the private enterprise team is taking on an important role in the economy. Some enterprises have reached out to the ocean, affirming their brands and competitiveness in the international market, contributing to enhancing the position and reputation of Vietnam such as VinGroup, Masan, Hoa Phat, Sungroup, REE, Thaco, Sovico... These enterprises not only promote well as pillars of economic growth but also are factors promoting the connection between enterprises in the business ecosystem.

According to data from the Vietnam Federation of Commerce and Industry (VCCI), private enterprises have created more than 50% of GDP and about 30% of jobs for the whole society. However, in the current process of international economic integration, the private economic sector has also revealed some shortcomings. These are backward technology, low and uneven quality of human resources, limited management capacity, etc.

Many experts and businessmen believe that private enterprises that want to develop need to have systematic, large-scale, quality investment from the beginning, along with the need to quickly grasp digital transformation and apply green, sustainable technology.

Mr. Pham Van Viet, Chairman of the Board of Directors of Viet Thang Jean Company, said that in order to meet the new trend in production activities in the garment industry, Viet Thang Jean has recently applied AI in its operations. Since then, the effectiveness of this application has been very good, reducing about 50% of the work on data management for the business. Along with that, the business has determined that in order to integrate and develop, it cannot stand outside the application of digital technology and green technology.

“Enterprises must successfully transform digitally to compete internationally. At the same time, businesses must ensure the standards of a green enterprise, green products, and high technology investment to meet the standards of the world market,” Mr. Viet said.

Private enterprises must proactively improve their capacity, be agile in digital transformation, and apply green and sustainable technology.

According to Mr. Hoang Quang Phong, Vice President of the Vietnam Federation of Commerce and Industry (VCCI), to achieve the growth target of 8% or more in 2025 and double-digit growth from 2026, there are high requirements for improving competitiveness, innovating business models at enterprises, and effectively utilizing support policies from the Government.

“Private enterprises must also be proactive and improve their capacity. Firstly, the capacity for compliance; secondly, enterprises must boldly innovate and innovate in science and technology; and thirdly, enterprises must have specific support policies for vocational training for workers,” Mr. Hoang Quang Phong proposed a solution.

General Secretary To Lam:

“...Obviously, the limitations on the development of private enterprises stem partly from the shortcomings of the institutional system and economic policies and the business environment. These bottlenecks not only restrain the growth rate of the private economic sector, causing its contribution to GDP to remain almost unchanged for more than a decade, but also prevent the economy from increasing added value, escaping the middle-income trap, slowing down the process of turning Vietnam into a high-income developed country by 2045 according to the Party Resolution's goals and the people's expectations...”.

“...For the private economic sector to be able to fulfill its mission and realize that aspirational vision, the most important factor is to continue to have breakthrough reforms in institutions, policies and the business environment so that the private economy can maximize its potential and become the driving force leading the economy to reach out to the international market...”.