The Role Of Private Sector In Creating A Prosperous, Dynamic Vietnam – OpEd

The private sector in Vietnam has not only helped expand production, trade, and services but also made an important contribution to improving labour productivity, promoting innovation, and increasing national competitiveness, the Nhan Dan website reported. 

The strong rise of many Vietnamese private enterprises has not only enabled them to dominate the domestic market but also gained a foothold in international markets.

General Secretary of the Communist Party of Vietnam (CPV) Central Committee To Lam has written an article about the development of the private economic sector, considering it as a lever for building a prosperous Vietnam.

The Party chief said that the strong growth of many Vietnamese private enterprises has exceeded the domestic market to establish their brands on a global scale.

“This proves that with a favourable development environment, Vietnamese businesses can truly thrive and compete fairly with the world,” Lâm wrote.

After nearly four decades of Đổi Mới (Renewal), Việtnam has transformed from a centrally planned, inefficient economy with an average income of only US$96 per capita in 1989, to the 24th largest economy in the world in terms of purchasing power parity (PPP). 

By the end of 2025, the country is expected to enter the group of countries with upper-middle income, equivalent to over $5,000 per person per year.

Việtnam’s economic growth rate has always been twice the average of developing countries, despite global economic fluctuations.

According to the Vietnam News website, Party General Secretary Lâm underscored that this achievement is not only the result of the development policies under the Party’s leadership with bold and decisive reforms in institutions, policies and integration, but also the result of the hard work, creativity, determination and tireless efforts of the entire nation.

The private economy plays a significant role in these achievements, said the Party chief, adding that the private sector has become one of the key pillars of the national economy and has proven to be the most important driving force for the country’s economic growth.

With nearly one million enterprises and around five million local businesses, the private economy now contributes about 51 percent of the national gross domestic product (GDP) and more than 30 percent of the State budget.

The private sector has also created over 40 million jobs, accounting for more than 82 percent of the total labour force in the economy, and contributes nearly 60 percent of total social investment.

However, the private economy still faces multiple barriers that hinder its development, preventing it from achieving breakthroughs in terms of scale and competitiveness, Lâm said in the article. 

He explained that the majority of Vietnamese companies are small and micro-sized, with limited financial capacity, management skills and innovation, as well as limited connections with each other and with foreign direct investment (FDI).

Heading towards a vision for the country’s growth, the private economy also needs to be conscious of its mission, according to Party General Secretary Lâm.

He wrote: “The private economy must be the pioneering force in the new era, successfully carrying out the mission of industrialising and modernising the economy, enhancing national competitiveness and embracing social responsibilities.

“A prosperous economy cannot rely solely on the public sector or foreign investment, but must be based on the internal strength of a robust private sector, which plays a leading role in innovation and national development,” Lam said.

The goal is that by 2030, the private economy will account for about 70 percent of national GDP.

The Party leader also stressed that the political system must re-position its viewpoint and awareness of the role of the private economy as the leading growth driver for the country.

This requires a fundamental change in policy-making, overcoming limitations and leveraging the advantages of the market mechanism to support the private sector in improving productivity and fostering innovation, he wrote.

The State also needs to develop and implement a strict legal framework for protecting property rights, including intellectual property and intangible assets, minimising legal risks and reducing sudden policy changes that could pose harm to businesses, the Party chief wrote.

According to the Vietnam News, we are living in a historic moment, witnessing unprecedented technological advancements and a rapidly changing international landscape filled with both cooperation and competition where opportunities and challenges go hand in hand. Yet, with unwavering resilience, determination, and a burning ambition, Vietnam is fully capable of achieving new miracles in socio-economic development! 

The Party leader also stressed that the political system must re-position its viewpoint and awareness of the role of the private economy as the leading growth driver for the country.

Party leader Lâm noted that private enterprises should actively embrace social responsibility, not just in terms of financial contributions or charity but also through responsible business policies that improve the living standards of workers, support community development and practice transparent and efficient governance.

A strong economy is taking shape, led by a generation of bold, innovative, and passionate Vietnamese entrepreneurs filled with the business acumen and patriotism, writing new chapters of success. A bright future – a socialist Vietnam standing shoulder to shoulder with global powers, as envisioned by President Ho Chi Minh – is gradually becoming a reality in the near future.

With the right policies and a favourable business environment, the private economy will not only help Việtnam achieve its high growth targets, but also turn into a high-income economy in the next two decades, the Party chief stated.

“This is the moment to act, to create a prosperous, dynamic Việtnam that will increasingly elevate its position on the global stage,” he wrote.

The private sector in Vietnam has been contributing a lot for the country’s economy.