Vietnam currently has over 940,000 private enterprises and about 5 million business households, employing tens of millions of workers. This economic sector contributes roughly 50 percent of GDP, 30 percent of the state budget, and over 80 percent of workers nationwide.

Speaking at a recent seminar on the driving force for private economic sector, Nguyen Thanh Loi, Editor-in-Chief of Kinh te & Do thi Newspaper, emphasized that if the private economic sector is given more opportunities and a fair, favorable business environment, it will contribute even more significantly to the country's development.

National Assembly (NA) Deputy Phan Duc Hieu, a member of the NA’s Economics and Financial Committee, noted that the introduction of Resolution 68 marked a qualitative shift, as previous institutional obstacles have been removed in three key areas: minimizing administrative burdens, enhancing protection, reducing risks, and unlocking resources.

The core spirit of Resolution 68 goes beyond merely removing business environment obstacles; it aims to fundamentally change legislative thinking and law enforcement.

Hieu stressed that if Resolution 68 is considered the “third milestone” in the private sector development, its success hinges on implementation.

“The biggest challenge now is the immense workload of institutionalizing policies. For instance, the 30 percent reduction in business conditions is still in the review phase, with further cuts planned. Some actions don’t even require legal amendments and can be implemented immediately,” he said.

Reflecting on the solutions outlined in the resolution, Hieu highlighted three key objectives set by the Politburo.

First, continue facilitating market entry by removing administrative barriers through a 30 percent reduction in compliance procedures and costs. This marks significant progress compared to the early 2000s.

Second, enhance protection levels. The handling of responsibilities for the private economic sector has shifted toward non-criminalization, significantly reducing risks for this sector.

Third, unlock resources, enabling private enterprises to access land, production facilities, capital, and human resources.

Meanwhile, Thien stressed that if the private sector is assigned the mission of being the most critical driver, it must be given enough power to implement the mission. And this is the state’s responsibility.

“The private sector’s development is the key to whether Vietnam can catch up with the world, not foreign investment,” Thien emphasized. “Thus, authorities at all levels must strive to support the private sector in fully playing its role”.

Hanoi’s advantages for private enterprise growth

Prof Hoang Van Cuong, Vice Chair of the State Professors Council, an NA Deputy of the 15th term, and member of the PM’s Policy Advisory Council, stated that Hanoi has many advantages for private enterprises to develop, such as its geopolitical and diplomatic position, and its role as a development hub for the northern region.

Additionally, Hanoi’s market, with a population exceeding 10 million, mostly high-income individuals, ranks second nationally. The city also boasts top-tier human resources and science and technology capabilities, the significant potential for boosting private economic growth.

However, Cuong cautioned that Hanoi’s private sector should not focus solely on quantity but prioritize attracting and developing quality. Private enterprises must lead in applying and transferring science and technology.

Resolution 68 has created a new “playing field,” enabling the private sector not only to grow independently but also to give it the opportunities to participate in significant state projects. Hanoi currently hosts numerous promising projects for businesses to tap into.

Truong Viet Dung, Hanoi’s Vice Mayor, stated that Hanoi has implemented various measures to support the business community, including significantly reducing administrative procedures, refining and publicizing transparent and equitable planning, and calling for investment in socio-economic, infrastructure, and energy projects.

The city is also advancing three strategic breakthroughs: a more open institutional framework, smoother infrastructure, and a workforce better equipped to meet new development demands, while enhancing dialogue and listening to businesses.

Hanoi has issued over 80 policies to support SMEs (snall and medium enterprises) for 2026-2030, focusing on governance, production infrastructure, startup ecosystem support, tax incentives, and financial aid for businesses in key science and technology sectors.

Hanoi aims to have approximately 230,000 active enterprises by the end of 2025, equivalent to 27 enterprises per 1,000 people, with the private sector contributing 50-55 percent of GRDP. With the growth scenario and targets set by the PM, Hanoi’s GRDP in 2025 is estimated at around $63.5 billion (up 8.5 percent).

Thus, the private sector’s contribution is projected at approximately $31.8-35 billion. The sector also aims to account for 45-50 percent of total budget revenue and provide jobs for 55-60 percent of the workforce.

Nguyen Le