Part I: Private economy affirms its position

The private economy (PE) is increasingly asserting its important role in socio-economic development, contributing to the goal of industrialization and modernization of the country. With clear contributions to GDP growth, job creation, promotion of innovation, and improvement of labor productivity, the private economic sector has become a key force in the national economy.

New impetus for the private economy

Production of laminated wood for export at Gemmy Wood Joint Stock Company (Tan Phu Industrial Park, Tan Son District).

Important driver of economic growth

The year 1986 was an important milestone for the development of the private economy. With the renovation policy (issued at the 6th Party Congress), the private economy was officially recognized as a component of the socialist-oriented market economy and of the multi-sector economy. Through the Congresses, the Party's Resolutions continued to affirm and emphasize the role of the private economy in the socialist-oriented market economy. The Party's viewpoint on the development of the private economy has become increasingly clear, along with general and specific policies issued in recent times, which have had a positive impact on the development of the private economy.

In recent years, the private economic sector in the province has made remarkable progress, participating more and more deeply in production and business activities in many fields such as agriculture , industry, transportation, trade, services, construction and processing of agricultural, forestry and aquatic products. Along with that, this sector has continuously expanded in scale, diversified in types, and improved in both quantity and quality. Notably, private enterprises in the industrial and construction sectors play a role as the driving force of economic growth.

In recent years, the economic structure has had a positive and more substantial change thanks to the contribution of the private sector in industries and fields with the number of enterprises accounting for the majority. In the province, the private sector has about 7,500 enterprises operating stably (with tax declaration), accounting for over 90% of the number of operating enterprises; creating jobs for about 85,000 workers. The achievements in development speed and level, management capacity, technology, business, and competitiveness of the private sector in recent years are very encouraging, thanks to the efforts of private enterprises, individual business households, and the undeniable role of the State in creating a favorable business environment for the development of the private sector. The province has focused on issuing resolutions, programs, and plans to improve the investment and business environment, enhance competitiveness, and create conditions to support the development of economic sectors. Along with general policies, specific policies issued in recent times have had a positive impact on the development of the private economy.

Ms. Dinh Thi Thuc - General Director of Tan Phong Joint Stock Company (Dong Lang Industrial Cluster, Phu Ninh District), Chairwoman of the Provincial Women Entrepreneurs Association said: “As a private enterprise, we are always deeply aware of our role and responsibility for socio-economic development. Not only striving to overcome difficulties, innovate and create to maintain and expand production and business, enterprises also focus on building corporate culture, fully fulfilling their obligations to the State, caring about the lives of workers and actively participating in social, humanitarian and charitable activities. We believe that, with the support of all levels, sectors and private enterprises, KTTN will continue to grow, contributing more and more to the overall development of the province”.

Along with enterprises, business households also play an important role in the private economy. With flexible scale and quick adaptability, this force contributes to creating livelihoods for tens of thousands of households and plays an important role in providing essential goods and services. Among them, many households have the potential to develop into larger and more systematically organized enterprises. The whole province has over 65,000 non-agricultural individual economic establishments, creating jobs for about 115,000 workers. The number of establishments has grown strongly in terms of quantity, investment capital, scale of operation, and occupations, contributing to the development and restructuring of the economy.

The private sector has made important contributions to maintaining economic growth and stability, contributing greatly to budget revenue, actively contributing to job creation, poverty reduction and implementing other social policies.

Hoa Duc business household (Dong Lac commune, Yen Lap district) specializes in trading electronics and household appliances, contributing to promoting household economy and meeting local consumption needs.

Rise up with inner strength, affirm your mettle

The business community has gradually matured in all aspects, initially forming a new generation of entrepreneurs who are dynamic, creative, decisive, fully equipped with knowledge, and capable of rising to the challenges of international economic integration. In difficult times, natural disasters, and epidemics, businesses and entrepreneurs still strive to maintain production and business activities, demonstrating social responsibility to the community.

In the context of a rapidly changing economy, private enterprises clearly demonstrate their role as pioneers in adapting to market trends and needs. With the advantage of flexibility, the ability to quickly seize opportunities and proactively improve production and business methods, private enterprises are increasingly asserting their mettle in competition and reaching out to the international market.

In Phu Tho , many private enterprises are constantly innovating their management models, investing in modern technological lines, and applying digitalization in management, production, and product distribution. Some typical enterprises have affirmed their brands in the fields of garment, food processing, construction materials production, OCOP products, etc. Many units not only meet domestic demand but also gradually expand exports, affirming their position in the international market.

In the face of many socio-economic fluctuations, with the support and companionship from authorities at all levels, many businesses and entrepreneurs in the province have promoted the spirit of self-reliance, self-reliance, initiative and creativity to overcome difficulties, maintain stable production and business, expand markets and enhance reputation. Phu Tho province has also issued many policies to strongly improve the investment environment, enhance provincial competitiveness, and create favorable conditions for businesses to develop sustainably.

In fact, the number of enterprises in the province has increased steadily over the years in most industries and fields. From 2020 to present, the number of newly registered enterprises has averaged 1,000 enterprises/year. Enterprises have gradually improved their management level, human resource quality, revenue and operational efficiency. Many entrepreneurs have clearly demonstrated dynamism, creativity, solidarity and cooperation in production and business, playing the role of the main force and pioneer in local socio-economic development. At the same time, they have proactively integrated deeply, participated in the global value chain, and gradually applied new production and business models associated with digital transformation, green economy, and circular economy. Not only focusing on growth targets, enterprises have also actively accompanied the government and the community in social security, poverty reduction, gratitude, etc., demonstrating increasingly clear social responsibility.

With the function of being a bridge between the business community in the province and the authorities, the Provincial Business Association currently has 640 members participating in the activities of the Association and its member associations. Member enterprises are creating stable jobs for over 29,000 local workers, with an average income of 6.5-8 million VND/person/month. Mr. Kieu Duc Thuan - Chairman of the Association said: "Private enterprises are increasingly playing a key role in local economic development. In addition to creating jobs and increasing income for workers, enterprises are also actively innovating, improving competitiveness, building a healthy business culture and proactively integrating".

In particular, the province effectively attracts social resources, economic sectors, especially the private economic sector, for investment in developing key infrastructure such as transport infrastructure, energy, industrial parks, industrial clusters, tourism, digital infrastructure, etc. and important projects of regional connectivity. In 2024, the province's development investment capital mobilization is estimated at VND 50,482 billion, of which private investment capital accounts for 63%. In terms of value, the role of the private sector not only contributes to the total amount of domestic investment but also has the ability to effectively allocate and use resources.

Through the development process with clear directions from the Central Government and the determination of the province, the private economic sector in Phu Tho is facing a great opportunity to make a breakthrough. In response to the requirement of renewing the growth model, improving productivity and competitiveness of the economy, the effective implementation of Resolution No. 68-NQ/TW of the Politburo on private economic development is considered an important orientation, opening up new space and motivation for private economic development.

>>> Part II: For the private economy to develop to its full potential

Economic Reporter Group

Source: https://baophutho.vn/ky-i-kinh-te-tu-nhan-khang-dinh-vi-the-235083.htm