Institutional breakthroughs are needed to develop the private economy.

Breakthrough from awareness to solution

On May 4, 2025, the Politburo issued Resolution No. 68-NQ/TW on private economic development, with unprecedented goals, viewpoints, tasks, and breakthrough solutions; shaping the Party's new viewpoint on private economic development in a socialist-oriented market economy with State management under the Party's leadership; promoting the strong development of the private economy - a new driving force for economic development in the coming time.

Just one week after Resolution No. 68, General Secretary To Lam wrote an article entitled “New driving force for economic development”. The article mentioned the theoretical foundations and new, very basic and important perceptions about the development of the private economy, not only as a new driving force for growth and development but also as the “backbone” of an independent economy.

The General Secretary directed that it is necessary to develop a Law on Private Economic Development. Illustrative photo.

With the spirit that a Party resolution is only considered successful when it becomes a vivid reality, creating material wealth, bringing wealth to the country and happiness to the people, the most notable point in the article is a series of urgent institutional breakthrough solutions pointed out by General Secretary To Lam.

Institutional bottlenecks are seen as the "bottleneck of bottlenecks" that hinder the country's development. Therefore, not only do we need to focus on removing them, but more urgently and fundamentally, we need to have practical and feasible breakthroughs to quickly put the viewpoints and contents of Resolution No. 68 into practice so that the private economy can "take off" and develop rapidly, when time has never waited for us.

Unprecedented drastic solutions

Here, the General Secretary pointed out that among the tasks that need to be done immediately to institutionalize and legalize the right to freedom of business, it is necessary to build the Law on Private Economic Development for the first time in Vietnam, shifting from the mechanism of asking and giving to the principle that businesses are allowed to do everything that is not prohibited by law.

At the same time, amend the Penal Code to separate economic disputes and criminal offenses, avoiding the situation of "criminalizing economic relations" which has caused apprehension among businessmen.

Apply the “post-audit” model (except for some specific fields such as security and defense), digitize 100% of investment licensing procedures, shorten the processing time from 30 days to 7 days. In particular, the General Secretary directed the need to establish a National Private Entrepreneurs Council so that private economic enterprises can play a role in advising and directly criticizing policies with the Government instead of being “invited when needed” as before.

New institutional breakthrough solutions for the private economy to develop towards the goals of Resolution No. 68 also need to clearly demonstrate the spirit of creating a fair competitive environment.

Fair competition first of all means thoroughly overcoming discriminatory thinking. For the first time in Vietnam, a list of biased behaviors towards state-owned enterprises will be made public, especially in accessing land and key projects. 5-10% of industrial park land fund will be reserved at preferential rental prices for small and medium-sized start-up enterprises.

Fair competition, as the General Secretary pointed out, also requires multi-layered financial support solutions. Accordingly, credit institutions build their own evaluation system for private enterprises, combined with credit guarantee funds to reduce lending risks.

That fairness also needs to be reflected in digital transformation so that the private economy can explore and have more room to develop not only for itself but also for the growth of the country's economy. Accordingly, the national legal sandbox model should be expanded, allowing practical testing with fintech, AI, and digital agriculture within a clear legal protection time frame.

The solutions pointed out by the General Secretary in the article are all very new and unprecedented, but reality has shown that they are all solutions and tasks that need to be done immediately. We cannot just because there is no precedent that we cannot quickly start working and do it vigorously, because only by doing can we get results, only by going can we arrive. The development interests of the country require us to do that, and reality will also have good and suitable thinking and ways of doing things. We cannot sit and wait for a precedent or a suggestion from the outside.

The solutions outlined in the General Secretary's article demonstrate our Party's comprehensive innovation mindset, from the perception that the private economy is the most important driving force to concrete actions to legalize and reform institutions. The most breakthrough point is the shift from the "management" model to the "accompanying" model of the State, considering enterprises as the objects of service. If effectively implemented, this will be a turning point in making the private economy a pillar of an independent and autonomous economy, as experienced by many economies in the world.

Quang Loc

Source: https://congthuong.vn/can-dot-pha-the-che-de-phat-trien-kinh-te-tu-nhan-387179.html