Private sector's potential unleashed for making new breakthrough

Driving force of development

Since the launch of the renovation process in 1986, Vietnam has transformed into one of Southeast Asia’s most dynamic economies — a success story driven largely by the private sector.

After nearly 40 years of reform, Vietnam’s private economy has achieved remarkable growth. Today, the country boasts nearly 940,000 operating enterprises, around 30,000 cooperatives, and more than 5 million household businesses. Together, they contribute roughly 60 percent of GDP, account for 98 percent of export turnover, and create jobs for 85 percent of the workforce.

Two milestones mark the private sector’s journey. The first came between 1988 and 1990, when the State officially recognized private enterprise and allowed it to operate in selected industries. The second was the adoption of the Enterprise Law in 1999–2000, which fundamentally changed perceptions and opened a new era for private economic development.

Now, with the Politburo’s Resolution 68-NQ/TW, issued on May 4, 2025, Vietnam is setting the stage for a qualitative leap in private sector growth. Experts and business leaders view this resolution as a catalyst to enhance the sector’s role as a leading force in national development.

Resolution 68 focuses on three key areas. First, it works on simplifying administrative procedures to foster a more business-friendly environment through institutional reform. Second, the resolution focuses on strengthening legal protections to ensure investors’ confidence and safeguard entrepreneurs’ legitimate rights. The third focus is on unlocking resources by improving access to capital, technology, and production inputs.

The resolution aims to energize both the State and the business community, calling for innovation in thinking and decisive action in implementation. In the long term, experts propose the establishment of an independent institutional reform agency—modeled after international best practices—to provide policy advice and the authority to submit legal proposals, ensuring sustained momentum for Vietnam’s private sector development.

Effective support for businesses

To increase both the number and the quality of Vietnamese businesses, especially private enterprises, efforts must focus on three main groups of solutions. First, this involves simplifying administrative procedures and reducing the cost of legal compliance. Second, it is essential to enhance access to capital and land. Third is the establishment of a supportive business ecosystem, which includes startup support centers, technology incubators, market connection services, and legal-financial consulting.

Every business is a cell of the economy. When each cell is healthy, the entire body will develop strongly. Therefore, the proactive innovation and adaptation of businesses will be a vital factor in an increasingly competitive business environment. Furthermore, while the institutional framework has been "unlocked," meaning businesses face fewer difficulties entering the market, they also confront fierce competition. In this context, only businesses with genuine capability, those that know how to innovate and seize opportunities, can break through and sustain themselves in the long term. Thus, businesses need to recognize that this is a phase that both filters and enhances the quality of enterprises while also providing them with opportunities to excel and rise.

The landscape of private enterprises in Vietnam is not uniform, meaning a "one-size-fits-all" approach is not feasible. The strategy for Vietnam's private enterprises should therefore categorize them into different groups, and support policies in the coming period should also be segmented accordingly. Crucially, large enterprises should be mobilized to participate in difficult and nationally important tasks. Private enterprises need to be boldly assigned more responsibility and involved more deeply in strategic and key projects. This will both enhance the capacity and affirm the role of this business sector.