On March 15, 2025, Vietnam's government put the spotlight on its private economic sector, affirming its pivotal role as the engine of growth when the Steering Committee for Building the Project on Private Economic Development held its first meeting at the Government Office.
The meeting was chaired by Deputy Prime Minister Nguyen Chi Dung, mentioning various government leaders and local officials participating. The committee was established by Prime Minister Pham Minh Chinh on March 6, 2025, to devise strategies aimed at propelling the private sector to new heights.
Vietnam has set ambitious targets for its economic growth, aiming for at least 8% annual growth, establishing the private sector as integral to achieving this aspiration. Currently, this economic sector accounts for approximately 50% of the country’s GDP and 82% of its total labor force, comprising over 6.1 million business establishments, which include around 940,000 operating enterprises and more than 5.2 million households engaged in business activities.
"Kinh tế tư nhân là động lực quan trọng nhất," said Nguyen Chi Dung, stressing during the meeting the importance of the private sector's contribution to societal progress. This comment embodies the government’s commitment to recognizing the private sector’s role as outlined since the 1986 Doi Moi (Renovation) reforms, which formally acknowledged this sector’s significance.
The private economy is also projected to meet the goal of having two million enterprises by 2030, as clarified during discussions at the committee meeting, where policymakers underscored the necessity for well-structured frameworks and policies to stimulate growth.
Throughout the discussions, various ideas were exchanged concerning how to dismantle bureaucratic obstacles currently hampering the private sector's potential. The committee aims to create favorable and transparent environments for private businesses to thrive, tapping fully the collective innovation and entrepreneurial spirit of the Vietnamese people.
Interestingly, the meeting highlighted the recent statistics indicating substantial involvement from private enterprises, which have become the backbone of the nation’s economic stability and growth. With the private sector generating over 56% of total social investment capital and contributing significantly to national budget revenues, the recognition of its role is increasingly urgent.
The government aims to promote not only the growth of small and medium enterprises but also encourage the emergence of large-scale organizations capable of leading key sectors. Recent statistics reveal more than 233,000 newly registered businesses or those returning to operations within just one year, the highest number recorded.
Despite the impressive figures, challenges persist as many enterprises remain small-scale, often struggling with competitiveness and management capabilities. The government, aware of the limitations, has eagerly commenced discussions on how to support these businesses to expand effectively and creatively.
To concretely push forward the role of the private sector, the government recognizes the need for bold and innovative policies, particularly with the aim of facilitating faster adaptation to modern economic realities. Gaining momentum, the private sector must also stay attuned to national priorities including sustainable development, technological advancement, and environmentally friendly practices.
Concluding the meeting, Deputy Prime Minister Nguyen Chi Dung requested all participants to maintain their high sense of responsibility and diligence to create actionable plans. He called for comprehensive legal frameworks and grounded strategic policies to establish the private economy firmly within Vietnam's broader development narrative.
He emphasized the need for the private economy to not only survive but be encouraged to flourish, equate with the narrative of lifting bricks inhibiting the flow of water - capable and ready to surge forward. With goals clearly identified for the next decade, the government is making substantial commitments aimed at pushing the private sector to thrive.
The discussions reflect Vietnam’s determination to strengthen its private sector, ensuring it becomes the leading driver for the country's ambition of becoming a higher-income nation by the year 2045.