Vietnam is entering a transformative era with its economic growth set to exceed 8% by 2025, presenting both challenges and opportunities, particularly for the private sector. The Asian nation has witnessed remarkable growth over the last four decades, elevting its business environment with over 940,000 operational businesses, more than 30,000 cooperatives, and over 5 million business households actively contributing to the economy.
On March 15, 2025, during a seminar organized by VITV, experts discussed the potential of the Vietnamese private economy, stressing the importance of innovation and adaptation. Among the speakers, Pham Dinh Doan, Chairman of Phu Thai Group, emphasized the need for urgency, stating, "If businesses are one day late, they could lose three days of opportunity." His words highlight the competitive nature of the business climate, where speed and adaptability are key.
Trần Đình Thiên, who serves on the National Financial-Monetary Policy Advisory Council, noted, "We see this as a historic moment and the breakthrough of the private sector is very important." His statement underlines the prevailing sense of urgency to empower private enterprises, which are recognized as pivotal to Vietnam's economic future.
Deputy Prime Minister Nguyen Chi Dung reinforced the government’s commitment by announcing the establishment of a steering committee aimed at removing barriers to successful private sector performance. At the same meeting, he stated the importance of easing these 'obstacles' to allow the private economy to flourish, akin to removing the 'stones' hindering progress. Dung's affirmation points to the Vietnamese government’s proactive approach to fostering entrepreneurial spirit and growth. He elaborated, "Vietnam aims to have 2 million businesses by 2030," reflecting governmental ambition for expansive economic development.
The private sector makes significant contributions to Vietnam's GDP—about 50%—and accounts for over 56% of total social investment, alongside employing approximately 82% of the total labor force. These figures are key indicators of the sector's health and its potential to lead economic growth.
Experts, including Nguyen Hai Minh from the European Business Association, recognize the impact of international policies on Vietnamese business. Minh noted, "The EU is continuously issuing policies related to green transition which impact the private sector," illustrating the necessity for Vietnamese enterprises to stay aligned with global market trends.
Despite the growth potential, challenges persist, particularly for small and medium-sized enterprises (SMEs), which often struggle to access credit. Dinh Thi Ha, Director of VNG Vietnam Appraisal Company, highlighted the financing hurdles faced by SMEs: "Small to medium-sized enterprises still face difficulties accessing credit capital." Clear financial pathways and supportive policies are imperative for these businesses to thrive.
Looking forward, the integration of new technologies will play a pivotal role within the private sector. Dinh Thi Quynh Van, Chairwoman of PwC Vietnam, pointed out the urgency for businesses to incorporate artificial intelligence (AI) to maintain competitiveness. She stated, "We need to integrate AI technology within our operations to remain competitive," emphasizing the need for technological adaptation as integral to business models.
The growing momentum of the private economy showcases the relentless spirit of Vietnamese entrepreneurs. While risks remain, the present atmosphere of innovation and determination is indicative of national pride; these business leaders embody the aspiration for progress and development. The call for the government’s support to finalize policy frameworks and create conducive environments for growth resonates throughout the sector.
Vietnam stands at the threshold of significant economic evolution, with its private sector poised as the driving force for this transition. The upcoming years will likely present the opportunities for the nation to establish itself as not just another developing economy, but as one capable of substantial growth and integral participation on the global economic stage. With collaborative efforts between government and private businesses, Vietnam can embrace its potential and encourage the flourishing of its private economic sector.