Private sector encouraged to drive growth

The Vietnamese government is working to make the private sector a key driver of the socialist-oriented market economy.

Major policy shift

Since Vietnam initiated economic reforms in 1986, it has been developing a multi-sectoral economy with a socialist orientation. The number of private enterprises has grown to 700,000.

The Party has adopted platforms and resolutions on socio-economic development which underline the important role of the private economy. The government has held investment promotion events and dialogues with private businesses.

Minister and Head of the Government Office Mai Tien Dung underscored recent government effort to reform administrative procedures.

He said, “The Prime Minister has established an advisory council for administrative reform. The council’s two major tasks are to connect business communities at home and abroad and give recommendations on ways to clear obstacles facing enterprises. Administrative reform of ministries, sectors, and localities has been carried out in line with the World Bank’s standards for improving the business environment.”

Continued policy reform to develop the private economy

Since the advent of the 4th Industrial Revolution and recent free trade agreements, stronger State support policies are needed to create a level playing field for the private sector.

President of the Vietnam Chamber of Commerce and Industry Vu Tien Loc said, “Institutional reform plays a fundamental role, shifting from removing obstacles to backing business development in general and the private sector in particular. The Law on Enterprises must be amended to pave the way for small, household businesses to grow.”

At the Vietnam Private Economic Sector Forum in Hanoi on May 2, Prime Minister Nguyen Xuan Phuc told the 2,500 attendees: “The private economy is equal to other economic sectors under the law, in competition, and in resource distribution and access. The private sector is protected by law, via property rights, and freedom to conduct a business. A favorable environment has been created for private economic development.”

The Vietnamese government aims to see at least 1 million private businesses, contributing half of national GDP by 2020, and 2 million private businesses contributing more than 60% of GDP by 2030.