With the addition of one million new businesses, contributions to economic growth, the state budget, employment, and social welfare are expected to increase, while new development opportunities for the economy will emerge. Importantly, however, growth in quantity must be matched by improvements in quality. Momentum from the informal sector The private sector is recognized—and must function—as the driving force of economic growth in the years ahead. However, given its current structure, large private corporations can only carry part of the load. With around 98% of formal businesses classified as small and medium-sized enterprises (SMEs), accelerating their growth is essential. To achieve economic growth of 8% or higher in 2025 and aim for double-digit expansion in the following years, SMEs should play a significantly more dynamic role. Moreover, the informal sector—which includes sole proprietorships, agricultural households, farms, and other business entities or self-employed individuals—accounts for around 40% of the private sector’s 50% contribution to GDP. Developing this sector not only boosts GDP and tax revenue, but also strengthens the private sector as a whole, making it more capable of responding to and activating policies that align with the nation’s broader development strategy. Therefore, when the Prime Minister issued Directive No. 10/CT-TTg […]
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