The room lies in the private sector.

In the scenario of at least 8% growth in 2025, the private sector is expected to contribute 96 billion USD out of 174 billion USD of total social investment capital. However, the figure could be higher.

Dissecting growth drivers: The room lies in the private sector

In the scenario of at least 8% growth in 2025, the private sector is expected to contribute 96 billion USD out of 174 billion USD of total social investment capital. However, the figure could be higher.

Hoa Phat commits to growth of no less than 15% in the next 5 years. In photo: Hoa Phat Dung Quat Steel Plant

Growth counting

The economic growth target of at least 8% in 2025 is not limited to the scenarios in the Government's Supplementary Project on Socio-Economic Development in 2025 at the ongoing 9th Extraordinary Session of the 15th National Assembly. A series of large-scale investment projects of the private sector that large enterprises have just reported to the Prime Minister will start or accelerate investment this year, which will certainly contribute significantly to GDP growth this year and in the coming years.

Thaco can be mentioned with the plan to start construction of a mechanical support industrial park in Binh Duong with a scale of more than 700 hectares in September 2025. T&T Group is waiting for Hanoi to complete the procedures for selecting investors for the Ring Road 4 Project that the enterprise has registered to participate in, and on the other hand, is promoting investment in 2 gas power projects with a capacity of 3,000 MW, constructing a wind power project in Laos that has just been M&A with a value of about 600 million USD, cooperating with SK Group (Korea) to invest in a gas complex to produce green hydrogen and recover carbon emissions...

BRG Group also committed to the progress of the North Hanoi Smart City Construction Project, with a scale of 4.2 billion USD... Not to mention the projects that many businesses are planning to invest in, such as Hoa Phat with a rail manufacturing factory with a total investment of about 10,000 billion VND, CMC Technology Group with an investment plan of about 700 million to 1 billion USD in the next 10 years...

Thus, the contribution to growth of the private enterprise sector is very clear and can be calculated specifically. Some large enterprises have proactively registered their growth rates so that the Government has more basis for calculation, such as Hoa Phat committed to a growth rate of no less than 15% in the next 5 years, BRG Group determined a growth rate of 8.8% this year...

Of course, moving from plan to reality to achieve each growth point is not easy, but the Prime Minister has been very determined to ensure everything goes as smoothly as possible. In the upcoming tasks of some ministries and sectors, there has been an additional item on working with corporations and private enterprises to implement major tasks and projects of the country.

Specifically, in the Conference of the Government Standing Committee meeting with enterprises on tasks and solutions for private enterprises to accelerate, make breakthroughs, and contribute to the country's rapid and sustainable development in the new era, the Prime Minister assigned tasks to ministries and branches based on their functions, tasks, and powers to work with enterprises, such as the Ministry of Transport will discuss and make commitments with Hoa Phat on investing in rail production, with Thaco on train cars, with Deo Ca and Xuan Truong on tunneling and road construction in the high-speed railway construction project.

“These commitments must be based on harmonious benefits and shared risks between the State, businesses and people, without negativity or corruption,” the Prime Minister emphasized. Along with that, the Prime Minister committed to reviewing the implementation of mechanisms and policies, ensuring the elimination of the request-grant mechanism, reducing administrative procedures, reducing time and compliance costs for people and businesses, etc.

Policy space

Dr. Nguyen Dinh Cung, former Director of the Central Institute for Economic Management (CIEM), has higher expectations for the main growth driver, the private economic sector, which the Government is identifying.

It must also be clarified that, with the scenario submitted to the National Assembly, the growth drivers are detailed. The total social investment capital alone is about 174 billion USD or more, approximately 33.5% of GDP, 3 billion USD higher than the growth scenario of 6.5-7%, striving for 7.5%. Specifically, public investment capital is about 36 billion USD, equivalent to 875,000 billion VND, about 84,300 billion VND higher than the plan assigned for 2025 (790,700 billion VND).

If the domestic economic sector recovers as before the Covid-19 pandemic and the State has policies to encourage production, increase income and increase household consumption, even though external conditions are not as favorable as in 2024, exports and export-related industries will hardly be the "salvation", then the 8% growth scenario is feasible.

- Dr. Nguyen Dinh Cung, Former Director of the Central Institute for Economic Management

In addition, total private investment capital is about 96 billion USD, an increase of 1 billion USD. Investment from the foreign investment sector remains as planned at about 28 billion USD. Other investments are 14 billion USD. Thus, just counting private investment capital, compared to the results achieved in 2024 of more than 2 million billion VND, the expected increase is about 11%.

The problem is, according to Mr. Cung, although the 11% figure is quite high compared to the 7.7% increase in private investment in 2024, it is still significantly lower than in previous years. Specifically, in the period 2014-2019, before the pandemic, the average growth rate of private investment capital was 14%. Therefore, to achieve a minimum GDP growth rate of 8% in 2025, it is important to prepare the foundation for the next period, private investment capital needs to return to a minimum growth rate of 14%.

“There is room to achieve this growth and it is still large,” Mr. Cung affirmed, saying that the solution lies in fully and consistently implementing the direction of General Secretary To Lam on “the need to promote the strength of the people and all economic sectors by… building a safe, transparent, low-cost, and internationally-standardized investment and business environment to promote the spirit of entrepreneurship and enrichment.”

In the immediate future and immediately, Mr. Cung proposed that the Government and local authorities at all levels resolutely, fully and consistently implement Resolution 02/2025/NQ-CP on improving the business environment in practice, not just on paper and in conference reports. Specifically, it is necessary to resolve difficulties, barriers, overlaps, duplications... in legal documents, complicated and costly administrative procedures that hinder and obstruct investment and business activities and report the results achieved monthly.

“Enterprises, including large private enterprises, all mention the delays and difficulties in administrative procedures, which discourage investors. If we just simplify them immediately and remove them immediately, the stalled projects will be revived immediately,” Mr. Cung affirmed.

In particular, he mentioned the proposal to allocate land without collecting land rent to experienced and reputable industrial park developers to build industrial parks reserved for domestic investors only. The goal is to support domestic enterprises to access industrial production sites at acceptable costs. This is also a solution to promote the construction and development of Vietnam's supporting industry, which many leading enterprises are pioneering, but are not strong enough to promote.

Source: https://baodautu.vn/boc-tach-dong-luc-tang-truong-du-dia-nam-o-khu-vuc-tu-nhan-d246152.html