Private sector deemed most crucial driver of Vietnam’s economy: Politburo

Vietnamese Party General Secretary To Lam signed the resolution on behalf of the Politburo on Sunday, which emphasizes the urgent need for solutions to elevate the development of the private sector.

Accordingly, in a socialist-oriented market economy, the private sector is recognized as the most important driving force, taking the lead in fostering growth, innovation, industrialization, modernization, and economic restructuring.

Alongside the state and collective sectors, it plays a pivotal role in building an independent, self-reliant, and internationally integrated economy.

The resolution calls for eliminating outdated mindsets, biases, and prejudices against the private economy, while affirming its indispensable role in national development.

It also stresses the importance of protecting the lawful rights and interests of enterprises and entrepreneurs, and ensuring a level playing field across all sectors in terms of access to opportunities and resources.

The document further calls for the development and refinement of mechanisms and policies that foster private sector growth, encourage innovation and entrepreneurship, and support digital transformation and the creation of legitimate wealth.

Vietnam aims to have 2mn private businesses by 2030

The resolution sets a goal for Vietnam to have two million active enterprises by 2030, with 20 businesses per 1,000 people and at least 20 large firms participating in global value chains.

By that year, the private economy is expected to record an average annual growth rate of 10-12 percent, surpassing overall national growth.

It should contribute 55-58 percent of gross domestic product (GDP), account for 35-40 percent of state budget revenue, and generate employment for 84-85 percent of the total workforce. 

Labor productivity in the sector is projected to rise 8.5-9.5 percent annually.

In terms of innovation, technology, and digital ltransformation, the private sector is envisioned to rank among the top three in ASEAN and the top five in Asia.

Looking ahead to 2045, the resolution envisions a strong, sustainable private economy that actively participates in global production and supply chains and achieves high regional and international competitiveness.

By then, Vietnam targets having at least three million active private enterprises contributing over 60 percent of GDP.

Key solution groups outlined

The resolution identifies eight major groups of solutions to effectively support the development of the private sector.

The first calls for renewed thinking, strong consensus in both perception and action, and the cultivation of national confidence and aspirations to create new momentum for private economic development.

The second emphasizes the need to accelerate institutional reforms and improve policies to safeguard property rights, ensure freedom of business, protect fair competition, and ensure the enforcement of contracts involving private enterprises.

It also highlights the importance of facilitating the private sector’s access to critical resources such as land, capital, and high-quality human resources.

Another key issue is promoting science and technology, innovation, digital transformation, green growth, and sustainable business practices within the private sector.

The resolution further calls for stronger linkages among private firms and between private, state-owned, and foreign-invested enterprises.

It also highlights the need to scale up medium and large private enterprises and foster the development of private economic groups with regional and global reach.

In the final two groups of solutions, the resolution calls for meaningful support for small, micro, and household businesses, while also promoting entrepreneurship and fostering conditions that enable entrepreneurs to contribute to national governance.