Dr. Tran Van Khai - Deputy Secretary of the Party Committee, Deputy Chairman of the National Assembly's Committee on Science , Technology and Environment 
Textile and garment production for export to Europe. (Photo: Do Phuong Anh/VNA)
After nearly 40 years of reform, Vietnam's private sector has become a pillar of the economy, but many inherent "bottlenecks" still hinder its development to its full potential.
The Politburo 's Resolution 68-NQ/TW unlocked those bottlenecks, creating an unprecedented policy springboard to help the private sector take off strongly and steadily over the next five years. The Party and State are committed to decisive, comprehensive, and synchronized action (institutions, resources, technology) with the belief that the private sector can become the leading growth engine of the economy.
General Secretary To Lam emphasized : "The private sector is one of the most important driving forces of the national economy."
Firstly, it requires a change in mindset and a unification of understanding and action: Resolution 68 affirms that the private sector is the most important driving force of the national economy, no longer a "supporting component" as before. This viewpoint aligns with international trends: in China, the private sector currently contributes approximately 60% of GDP.
This message is consistent from the central to local levels, completely eliminating all prejudices against the private sector; businesses and entrepreneurs are honored as "warriors in peacetime" on the economic front. The State has shifted entirely to a constructive and service-oriented role, ending arbitrary administrative interference and strictly dealing with acts of harassment, thereby strengthening trust between the government and businesses.
Prime Minister Pham Minh Chinh chaired a meeting with the Policy Advisory Council on Private Economic Development. (Photo: Duong Giang/VNA)
Secondly, institutional reform, ensuring rights and a favorable business environment : The resolution outlines a comprehensive institutional reform program, likened to a revolution in the business environment.
The "if you can't manage it, ban it" mentality and the "request-and-grant" mechanism were eliminated. Instead, market principles were emphasized: businesses were free to operate in any sector not prohibited by law, and any restrictions had to have a clear legal basis.
The legal system will be transparent, stable, protect property rights, and ensure fair competition for the private sector.
Specifically, by 2025, the government will reduce procedural time by at least 30%, compliance costs by 30%, and business conditions by 30% – a breakthrough to "pave the way" for businesses. Simultaneously, the government will promote e-government and the application of digital technology to streamline procedures, reduce costs, and eliminate opportunities for corruption.
As a result, the business environment has become unprecedentedly open. Singapore – a world leader in business environment – has strongly attracted private investment thanks to its transparent and stable institutions.
Thirdly, removing obstacles related to land, capital, and human resources : Resolution 68 focuses on resolving the inherent difficulties faced by private enterprises in accessing land, capital, and human resources.
The government will build a national, interconnected, and publicly accessible land database to make it easier for businesses to look up land resources, shortening the time for land allocation and land use permits. Consideration will be given to reducing land rent by at least 30 % for the first five years for new investment projects, helping to reduce input costs.
Regarding capital, develop startup investment funds, credit guarantee funds, and various other fundraising channels to make it easier for businesses to access capital. In addition, implement large-scale training programs to improve the quality of human resources.
Fourth, promoting science and technology, innovation, and green transformation : The private sector is expected to become the driving force of national innovation. The resolution emphasizes that this sector must be the pioneering force in the development of science and technology, innovation, and digital transformation.
International experience shows that innovation is closely linked to the private sector: Israel – the “startup nation” – spends more than 5% of its GDP on R&D (the highest rate in the world) to promote technology businesses; South Korea spends about 5% of its GDP, contributing to the creation of many leading private technology corporations.
The government will issue breakthrough policies to attract businesses to invest in high technology, the digital economy, and green energy, providing special tax and land incentives for R&D and innovation projects.
The goal by 2030 is for Vietnam's technological and innovation level to be among the top 3 ASEAN countries, with private sector labor productivity increasing by 8.5-9.5% per year. With these policies, a privately-led innovation ecosystem will be formed, fostering sustainable growth in the digital age.
Prime Minister Pham Minh Chinh presides over the second meeting of the Steering Committee for the development of the private economy. (Photo: Duong Giang/VNA)
Fifth, strengthen the linkages between the private sector, the state, and FDI: Resolution 68 promotes close linkages between the private sector, the public sector, and FDI based on the principle of mutual benefit.
The private sector is given the opportunity to participate in important national projects previously undertaken by the public sector; public-private partnerships (PPP) are expanded to effectively mobilize social resources for large-scale projects, thereby helping private enterprises mature.
FDI enterprises and the state should strengthen their ties with domestic suppliers, support domestic businesses in participating more deeply in the value chain, receive technology transfer, and increase added value.
Sixth, to form private enterprises of international stature: A key objective of Resolution 68 is to develop private enterprises of regional and international stature. The goal is to have at least 20 private enterprises participating in global value chains by 2030.
To achieve this goal, the State will have specific policies to support leading private enterprises in expanding their scale and reaching out to the global market (preferential treatment in terms of capital, land, and human resources for strategic projects).
At the same time, it is important to promote the building of national brands for Vietnamese products and businesses, helping private companies to promote and penetrate international markets. Thanks to this favorable environment, it is expected that many world-class private enterprises will emerge in the future.
These powerful private corporations not only make significant contributions to GDP and the national budget, but also lead smaller businesses to develop alongside them, creating a positive ripple effect in the economy.
Seventh, support small and micro enterprises and household businesses: Alongside nurturing large "locomotives," Resolution 68 places special emphasis on supporting small and micro-enterprises and household businesses – which constitute the majority but remain vulnerable.
Indonesia's experience shows that this is a pillar of the economy: 64.2 million MSMEs contribute 61% of GDP and create 97% of jobs in Indonesia. Resolution 68 is the first to apply strong policies to promote the transformation of this sector. Specifically, it abolishes business license fees, exempts newly established small and medium-sized enterprises (SMEs) from corporate income tax for the first three years, helping to reduce the burden of startup costs; and simplifies business registration procedures, expands access to capital (microcredit, startup funds, etc.) to enable millions of individual business households to enter the formal sector.
The national target of having 2 million businesses by 2030 is entirely achievable if a strong wave of entrepreneurship is created from small businesses thanks to these groundbreaking support policies.
Production of export goods at Bao Hung International Joint Stock Company (Tan Minh Industrial Cluster, Vu Thu District, Thai Binh Province). (Photo: The Duyet/VNA)
Eighth, enhance business ethics and social responsibility: Resolution 68 also emphasizes building a healthy business culture: businesses that generate wealth legitimately, transparently, comply with the law, and compete fairly; and resolutely combat harassment and bribery.
Businesspeople are encouraged to uphold national pride, social responsibility, and actively participate in the policy-making process.
These groundbreaking solutions are expected to bring about significant changes within the next five years, while also laying the foundation for a long-term vision extending to 2045.
By 2030, the goal is to have 2 million businesses (20 businesses per 1,000 people), with the private sector growing at 10-12% per year, contributing 55-58% of GDP, 35-40% of the budget, and creating jobs for 84-85% of the workforce.
By 2045, the goal is to have at least 3 million businesses, contributing over 60% of GDP; and for Vietnam's private sector to reach international competitiveness.
With Resolution 68, the policy "launchpad" is ready - for the first time, the private sector is given comprehensive opportunities and resources to thrive.
From changing perceptions to institutional reforms, from providing resources to promoting technology – all the necessary conditions have come together to create a new impetus for development.
If these commitments are implemented decisively, the goal of making the private sector the main driver of growth could become a reality in the next decade.
The key is in hand; success depends on the actions of both the political system and the business community. With a strong commitment to reform, we have reason to believe in a breakthrough era for the private economy.
Dr. Tran Van Khai, Deputy Secretary of the Party Committee, Deputy Chairman of the National Assembly's Committee on Science, Technology and Environment. (Source: Vietnam+)
References: (1) VnEconomy (2025). Politburo's Resolution on development of private economy issued; (2) Edward Cunningham (2023). What is the future of China's private sector? – Harvard Kennedy School; (3) Economist Intelligence Unit (2023). Business Environment Rankings – Singapore remains the best; (4) Israel Innovation Authority (2023). Annual Innovation Report – R&D Expenditure; (5) Statista (2022). South Korea – R&D spending (% of GDP); (6) World Economic Forum / KADIN (2022). MSMEs in Indonesia.
(VNA/Vietnam+)
Source: https://www.vietnamplus.vn/mo-khoa-dot-pha-be-phong-moi-cho-kinh-te-tu-nhan-post1038948.vnp
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