Resolution 68 on private sector development sets goals for 2030, with a vision to 2045, aiming for 2 million active enterprises in the national economy (20 enterprises per 1,000 people), contributing 55-58 percent of GDP, 35-40 percent of state budget revenue, providing 84-85 percent of total jobs, and achieving average labor productivity growth of 8.5-9.5 percent per year. Vietnam hopes to have at least 20 major private enterprises participating in global value chains.

By 2045, the goal is to have at least 3 million enterprises, with the private sector contributing over 60 percent of GDP and becoming highly competitive regionally and globally.

However, at the seminar “Breakthrough solutions to address bottlenecks in private sector development” organized by the National Economics University (NEU) on August 15, Prof Nguyen Thanh Hieu, NEU Vice Director, pointed out that the private sector still faces significant problems when playing its role as a national economic pillar.

The sector has the lowest business efficiency, technological advancement, labor productivity, and worker income among economic sectors. It also shows signs of slowing momentum in its development.

Hieu highlighted bottlenecks faced by enterprises, such as incomplete recognition of the private sector’s role, inequitable and non-inclusive policies, lack of effective linkage models within the private sector, weak internal capacity to absorb development resources, and limitations in the quality of entrepreneurs.

Meanwhile, Prof Ngo Thang Loi from NEU noted that the private sector’s business efficiency is lower than that of state-owned and FDI enterprises, with nearly half of private enterprises incurring annual losses.

“In terms of average pre-tax profit, each private enterprise achieves only 0.52 percent of a state-owned enterprise’s profit and 3.1 percent of an FDI enterprise’s. The private sector’s labor productivity is only 34 percent of state-owned enterprises and about 69 percent of FDI enterprises,” Loi said.

Enabling private enterprises 

Economists pointed out that in the long term, the economy cannot rely solely on FDI. Foreign invested enterprises come quickly and can also leave rapidly, especially during trade disruptions or strategic shifts. 

Meanwhile, Vietnamese private enterprises, rooted locally, can grow sustainably across generations.

“The private sector must be seen as the ‘backbone’ of the country’s development. Many private enterprises have emerged from families with a business tradition,’ said Dau Anh Tuan from VCCI. 

“It’s crucial to create incentives and a favorable environment to motivate entrepreneurs to define a mission of building enduring Vietnamese enterprises and brands that can thrive sustainably across generations,” he added.

For private enterprises to become a core force, they need to contribute more to GDP. Resolution 68 sets a target for the private sector to account for 55-58 percent of GDP by 2030, alongside increasing exports and creating more jobs.

Loi emphasized that to achieve an overall economic growth target of 8 percent, the private sector must grow by 10.3 percent from 2025. To sustain double-digit growth, the private sector needs to achieve at least 11.5-12 percent growth.

This requires addressing bottlenecks hindering private sector development.

Loi proposed policies ensuring equal opportunities for all enterprise types (private, state-owned, and FDI) in accessing inputs, conducting business, and distributing outputs.

He also suggested solutions to link private enterprises of varying scales, as well as measures to connect Vietnamese enterprises abroad with domestic private enterprises, while enhancing the capacity of Vietnamese entrepreneurs.

Tran Van The, Chair of InDel Investment and Development, stressed the need to improve institutional frameworks to be consistent, transparent, and stable, particularly in areas where enterprises face challenges, such as investment, land, credit, and public-private partnerships.

Administrative reform must be substantive to save enterprises time and compliance costs.

The proposed tax incentives, financial support, technical assistance, and fostering an innovation ecosystem. Additionally, creating conditions for private enterprises to participate in public investment projects and national industrial supply chains is essential.

Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy Research, proposed a breakthrough solution: creating a dynamic business environment and giving power to leaders. He noted that the volume of land-related paperwork at ward levels is substantial. If leaders are empowered and adhere to legal regulations, processes would be significantly faster, avoiding prolonged delays for enterprises.

Nguyen Le