Measuring the resilience of the private sector

In mid-May, the Vietnam Chamber of Commerce and Industry (VCCI) released the Vietnam Private Sector Report (BPI) and the Provincial Competitiveness Index (PCI) for 2025, exactly one year after the Politburo issued Resolution No. 68-NQ/TW on the development of the private sector.

The recently published BPI report reveals efforts to gain a deeper understanding of the operational realities of the private sector , from formal enterprises to individual business households. (Source: VnEconomy)

The report is based on large-scale empirical surveys involving 3,546 domestic private enterprises, 586 FDI enterprises, and 1,001 household businesses across all 34 provinces and cities, demonstrating an effort to gain a deeper understanding of the operational realities of the private sector, from formal enterprises to individual household businesses.

From these data, it can be seen that the private sector is moving beyond a defensive phase to a more proactive state. The BPI delivers three positive messages: The private sector has overcome the "defensive" phase and is ready to break through; the number of businesses entering the market reached a record 297,500, a 27.4% increase compared to 2024; and business confidence in reforms is recovering strongly.

The data and figures presented in the PCI and BPI reports all indicate that institutional reforms are on the right track, and the gap between policy design at the central level and policy implementation capacity at the local level is gradually narrowing.

This is an important signal because, for the private sector, confidence is not just a feeling, but also a condition for businesses to dare to invest, expand production, innovate, and accept risks. This also shows that Resolution No. 68-NQ/TW is creating the necessary policy impetus, gradually entering into economic life.

However, the resilience of the private economy cannot be measured solely by the number of newly established businesses or the level of optimism among businesses, but must be verified by its ability to withstand market fluctuations, access resources, increase productivity, innovate, and participate more deeply in the value chain.

It is here that this year's report also highlights several noteworthy bottlenecks. Difficulties in finding customers have increased significantly, access to capital remains heavily dependent on collateral, informal costs persist in some interactions with the public sector, while the innovation capacity of private enterprises remains modest.

According to the Provincial Competitiveness Index 2025, 60.2% of businesses faced difficulties in finding customers, the highest level in the past five years. This signals that market demand remains a major pressure on businesses, especially small and medium-sized enterprises (SMEs). Access to capital continues to be a significant barrier. 75.5% of businesses reported being unable to borrow capital without collateral, much higher than the 33.4% in Malaysia, indicating that the financial market has not yet truly facilitated business access.

Another challenge is the low predictability of the policy environment. Only about 6-8% of businesses can predict policy changes. Meanwhile, innovation has not become a widespread driver in the private sector, with only 8.8% of businesses engaging in product innovation, lower than Malaysia, Thailand, and the regional average. These figures highlight that reforms cannot stop at removing bureaucracy, but must move towards creating a stable, transparent development environment capable of supporting the growth of large businesses.

The Private Sector Performance Index comprises 23 indicators across two dimensions: the development of the private sector and its innovation capacity. The significance of the Private Sector Performance Index lies in the fact that it doesn't just look at administrative reforms or the quality of government services, but also asks more direct questions: Can private enterprises grow, create jobs, innovate, and improve their position in the value chain?

This approach is also necessary because the ultimate goal of reform is not just to make procedures faster, but to make businesses healthier, markets more dynamic, and the economy more competitive.

In this new era of development, where the private sector is identified as the most important driving force of the economy, the requirements go beyond simply improving procedures or reducing compliance costs. More importantly, it is essential to build an ecosystem that is sufficiently transparent, equitable, and conducive for private businesses to invest, innovate, and grow sustainably.

When institutions truly become a foundation, when resources are allocated fairly, and when the entrepreneurial spirit is fostered, the private economy will not only grow in quantity but also become strong in quality, competitiveness, and contribution to the country.

Source: https://baoquocte.vn/do-suc-bat-cua-kinh-te-tu-nhan-398557.html