Vietnam's private sector is "large but not yet strong".

In the 2025 private sector economic landscape, facing a new era of development with expectations of double-digit growth, the private sector is demonstrating remarkable vitality, but at the same time, it is revealing inherent weaknesses and policy barriers that need to be decisively addressed.

Many changes, but optimistic.

The Vietnam Private Economy Report 2025, published by the Vietnam Chamber of Commerce and Industry (VCCI) on May 15th, outlines a period of significant change but also many optimistic signs. By the end of 2025, the country will have over 1 million active businesses, a 6.6% increase compared to the previous year, along with a record 297,500 new businesses entering the market.

Notably, this region, combined with approximately 6.1 million business households, is creating jobs for 26 million workers, accounting for over 50% of the country's total employment, affirming its position as the most important driving force of the economy. The introduction of the Business Performance Index (BPI) for the first time demonstrates the breakthrough of leading economic hubs, with Ho Chi Minh City leading the country, followed by Hanoi and Quang Ninh, in terms of innovation capacity and actual development efficiency.

However, the results from the Provincial Competitiveness Index (PCI 2.0) also show that this development is taking place within the context of major administrative reforms, with the number of provincial-level units merging from 63 down to 34 localities.

Although private enterprises account for 96.6% of all active businesses, this sector remains in a state of being "numerous but not strong".

Survey data indicates that over 80% of businesses are small-scale enterprises with fewer than 50 employees, and over 70% have registered capital of less than 10 billion VND.

Furthermore, the household business sector, which is the backbone of social security, is operating at very thin profit margins, with 81.5% of households experiencing a decline in revenue and over 73% only achieving enough profit to maintain a minimum standard of living. A defensive mindset still prevails, with most businesses choosing to maintain their current scale to explore the market instead of expanding.

The Vietnam Private Sector Report 2025, published by the Vietnam Chamber of Commerce and Industry (VCCI) on May 15th,

Unblocking 4 major bottlenecks

To ensure the private sector truly becomes the driving force of the country's development, the VCCI report frankly pointed out four major bottlenecks hindering growth. The biggest difficulty currently is the output market, with over 60% of businesses facing obstacles in finding customers, a sharp increase compared to previous years.

Next is the issue of accessing capital, with 75.5% of businesses admitting they cannot borrow capital without collateral, indicating that credit flows are not truly operating according to business plans or actual cash flow.

Furthermore, informal costs remain a burden, with approximately 26% of businesses incurring extraneous fees when applying for licenses, three times the regional average. In particular, the low predictability of policies means that more than half of businesses access information on draft laws through social media instead of official channels.

Faced with these challenges, VCCI Chairman Ho Sy Hung emphasized that policies "need to fundamentally shift from a management mindset to a partnership mindset, and from reducing procedural burdens to building competitiveness." The goal of reaching 2 million businesses by 2030 can only be achieved if bottlenecks in capital, markets, and policy transparency are decisively removed in the next 12 to 18 months.

Experts also recommend that the government needs to build a transparent business ecosystem, promote innovation, and support genuine digital transformation instead of focusing solely on licensing procedures. The sustainable development of the private sector should not only be measured by the number of newly established businesses but also by their ability to survive, be profitable, and expand within the global value chain.

According to experts, the private sector's economic landscape in 2025 is a blend of aspirations for growth and practical challenges. When we understand that behind every business figure lies the livelihood of millions of families, creating a fair and predictable business environment is the greatest gift we can give to business owners who strive every day.

Source: https://phunuvietnam.vn/kinh-te-tu-nhan-viet-nam-dong-nhung-chua-manh-238260518103520317.htm