Following the publication of its article series “Strong Private Sector, Prosperous Nation" SGGP Newspaper received positive feedback from numerous experts. To gain deeper insights into the potential and evolving role of the private sector in the new era, SGGP reporters conducted an interview with Deputy Minister of Finance Nguyen Duc Tam.
Resolution No. 68-NQ/TW highlights that Vietnam’s private sector comprises over 940,000 enterprises and more than 5 million business households. It serves as a key driver of national prosperity—generating wealth, fueling economic growth, creating jobs, enhancing labor productivity, fostering innovation, and boosting national competitiveness. The sector also plays a vital role in poverty reduction, social stability, and inclusive development. Currently, it contributes approximately 50 percent of Gross Domestic Product (GDP), over 30 percent of total state budget revenue, and employs 82 percent of the national labor force.
Resolution No. 68-NQ/TW has set out many tasks and solutions, creating leverage to help the private sector develop, becoming 'the most important driving force of the national economy'. In particular, digital transformation, e-commerce, and artificial intelligence (AI) are new growth drivers for the private sector. The process of institutional reform combined with the trend of mergers and acquisitions, investment in technology, and expansion of international markets are creating new opportunities for the private sector to break through.
During its growth, the private sector encounters significant impediments that constrain its expansion and competitive edge. These challenges stem from several key factors: an insufficient appreciation for the private sector's pivotal role in the national economy, persistent complexities and deficiencies within the regulatory and legal frameworks and incomplete assurance of entrepreneurial freedom and property rights.
Furthermore, the private sector continues to experience restricted access to essential resources, while the efficacy and accessibility of certain support policies remain limited, contributing to elevated operational costs.
Between 2017 and 2024, nearly 60 laws, over 40 resolutions and ordinances, and approximately 980 decrees concerning the private sector and businesses have been enacted, along with the signing of 17 new-generation free trade agreements. However, the issuance of implementation guidance documents has been sluggish, and certain regulations intended to support small and medium-sized enterprises remain unsynchronized.
Specifically, certain support services, including business management consulting, digital transformation, creative startups, industry connections, and value chains, remain unclear regarding their target audiences and implementation strategies. Furthermore, there is a significant shortage and weakness in human resources dedicated to assisting small and medium-sized enterprises in local areas. During the development phase, the private sector encounters numerous obstacles that impede its growth, preventing it from achieving significant advancements in scale and competitiveness.
While services like business management consulting, digital transformation support, creative startup assistance, industry linkages, and value chain development are offered, the specific subjects and implementation methods can still be confusing. Additionally, the human resources available to support small and medium-sized enterprises at the local level are both insufficient and underdeveloped.
To help private enterprises make a breakthrough and contribute to the rapid development of the country, the most important factor is to have breakthrough reforms in institutions, policies and a transparent business environment so that the private sector can maximize its potential and become a driving force for the economy. According to Deputy Minister of Finance Nguyen Duc Tam, the country should have a high level of consensus on the particularly important role of the private economy and have fundamental changes in policy making.
In line with Resolution No. 68-NQ/TW, the advancement of a fast, sustainable, effective, and high-quality private sector is both a critical and urgent priority, as well as a long-term strategic goal that must be integrated into the nation's development strategies and policies. Consequently, the country must implement robust policies, solutions, and actions that embody the principle of 'an innovative State, with dynamic enterprises driving the rapid and sustainable growth of the nation in this new era'.
This includes enhancing the investment and business climate, facilitating maximum ease for businesses to seize opportunities, transitioning from traditional public administration to a focus on service and development, centering on the needs of individuals and businesses, and modernizing public administration through data-driven approaches.
He supposed that the Government must ensure that the economy operates on market principles, safeguarding the rights to free enterprise, property ownership, and fair competition. It should eliminate all barriers, clarify policies, and avoid discrimination between the private sector and other economic sectors in all policies. The legal framework should be developed with a focus on fostering growth, emphasizing an outcome-based management approach, and shifting from prior approval to post-approval processes linked to accountability. It is essential to adhere strictly to the principle that individuals and businesses are permitted to do anything that is not prohibited by law.
This is an opportune moment to establish mechanisms that dismantle barriers and unleash the potential of the private sector, which is crucial for achieving the strategic development goals of the country by 2030 and 2045. Resolution No. 68-NQ/TW from the Politburo has met expectations by creating new incentives, encouraging, supporting, and guiding the development of the private sector.
In this new era, the private sector including domestic private enterprises and foreign-invested sectors alongside State-owned and collective economies, forms the core of building a self-reliant and resilient economy.
