A batch of VinFast electric vehicles exported to Indonesia at Mipec port, Hai Phong city. (Photo by TAM VO)
The potential and dynamism of Vietnamese private enterprises are growing. If these potentials are exploited, a favorable business environment is created, and obstacles are promptly removed, private enterprises will grow rapidly and become a leading pillar of the economy .
Contributing approximately 51% of GDP.
In the article "Developing the Private Economy - A Lever for a Prosperous Vietnam," General Secretary To Lam clearly stated: While in the early stages of reform, the private economy played only a secondary role, with the economy primarily relying on the state sector and foreign investment, in the last two decades, especially since the Politburo issued Resolution 09 in 2011 and the Central Committee issued Resolution 10 in 2017 on the development of the private economy, this sector has risen strongly, becoming one of the most important pillars of the economy and increasingly demonstrating itself as the most important driving force for promoting national economic growth.
From a poor and backward economy with a per capita income of only US$96 in 1989, Vietnam has now risen to become one of the world's top 40 economies. By the end of 2024, per capita income had increased to nearly US$4,700 per year, and the gross domestic product (GDP) reached US$476.3 billion. The private sector has made a very important contribution to the country's overall achievements.
Statistics show that, as of December 31, 2024, the private sector comprised over 940,000 enterprises and approximately 5.2 million individual business households, contributing about 51% of GDP, over 30% of the state budget, and creating over 40 million jobs (accounting for over 82% of the total workforce in the economy). Despite facing numerous challenges, the private sector has consistently maintained a relatively high growth rate, continuing to be a core force in creating material wealth, making significant contributions to economic growth, providing employment for workers, and contributing to social stability.
However, despite the achievements, the private sector still exhibits limitations and shortcomings. The majority of Vietnamese private enterprises are small and micro-sized, with underdeveloped management skills, weak competitiveness, and poor operational efficiency. While some businesses have made it onto the global list of billion-dollar companies, their number is still small and they haven't yet become a driving force for small and medium-sized enterprises. Meanwhile, the individual business household sector is large but fragmented, primarily operating in trade, services, and small-scale retail.
The reason why Vietnam's private sector has not yet fully realized its potential and strength is due to the inadequate and inconsistent legal system, mechanisms, and policies encouraging private sector development, as well as the limitations in their implementation. In addition, cumbersome and complex administrative procedures create bottlenecks hindering the development of the private sector. According to economic experts, fundamentally, there is currently no truly comprehensive development strategy for the private sector to define its position and provide a basis for designing appropriate policies for each group of businesses and individual business households based on scale or industry.
The "three-legged stool" strategy
Also in the article "Developing the Private Economy - A Lever for a Prosperous Vietnam," General Secretary To Lam affirmed that a strong economy cannot rely solely on the state sector or foreign investment, but must rely on the internal strength of a robust private sector, playing a pioneering role in national innovation and development. In that spirit, General Secretary To Lam directed that the entire political system needs to thoroughly re-evaluate its perspective and understanding of the role of the private economy as the country's leading growth engine. This requires a fundamental change in policy planning, overcoming limitations and leveraging the advantages of the market mechanism to support the private sector in improving labor productivity and innovation…
To unleash and develop the potential and strength of the private sector in the new era, the Politburo is expected to issue a resolution soon to encourage, support, and guide the development of the private economy with breakthrough reforms in institutions, policies, and the business environment, so that the private sector becomes a leading engine of national growth. This is information that the private business community has been eagerly awaiting.
Mr. Nguyen Quoc Ky, Chairman of the Board of Directors of Vietravel Tourism-Aviation Group, believes that this is a pivotal moment in the thinking and awareness of the Party and State regarding the position and role of the private economy. Businesses hope that this spirit will be translated into the content of the new Politburo resolution and implemented effectively and substantially in practice, overcoming the bottlenecks that are hindering the development of the private economic sector.
“Businesses are the internal strength and power of the economy. Only when domestic businesses are healthy can the economy be strong. Policy thinking needs to approach this from the perspective of fairness between state-owned enterprises, private enterprises, and family businesses. All three types of businesses have equal positions and roles, together forming a solid three-legged stool of the economy for sustainable development,” Mr. Nguyen Quoc Ky emphasized.
Mr. Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association (HUBA), believes that to accelerate institutional reform and unlock resources in the private sector, it is necessary to focus on three core issues: improving the legal environment with solutions to simplify investment licensing, business registration, and tax procedures; reducing barriers to accessing capital for businesses through increased transparency in credit approval; and further improving the credit guarantee fund to effectively support small and medium-sized enterprises. At the same time, there must be mechanisms to protect business rights, specifically by improving the effectiveness of the legal system to protect intellectual property rights, combat trade fraud, and ensure fair competition.
The Chairman of HUBA expects that, with the decisive reforms, strong leadership, and vision of the General Secretary, the new resolution on private economic development will have a clear strategic direction, a breakthrough in the role of the private economy in the socialist-oriented market economy, and remove institutional bottlenecks hindering the development of businesses.
According to the plan, today, March 21st, in Ho Chi Minh City, the Nhan Dan Newspaper, in coordination with Vietnam Television (VTV) and the Ho Chi Minh City Business Association (HUBA), will organize a seminar titled "Removing Policy Shortcomings to Enhance the Role of the Private Sector in the Vietnamese Economy." The seminar aims to provide an overview of the role, potential, and challenges of the private sector, while clarifying policy shortcomings that are hindering the development of this important economic sector. From there, it will propose solutions to remove these obstacles so that the private sector truly becomes a leading growth engine for the country, as well as contribute opinions to the upcoming draft resolution of the Politburo on the private sector.
Nhandan.vn
Source: https://nhandan.vn/vai-role-vi-the-moi-cua-kinh-te-tu-nhan-post866548.html
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