HCMC – Party General Secretary To Lam has signed a new resolution of the Politburo that recognizes the private sector as a key driver of the country’s socialist-oriented market economy.
Resolution No. 68, which was signed on May 4, 2025, acknowledges that, after nearly four decades of economic reforms, the private sector of the nation has grown significantly in both scale and quality, and emerged as a vital force in the nation’s economy. However, the sector still faces substantial barriers that hinder its growth, limit its scale, and undermine its global competitiveness, falling short of expectations as a cornerstone of the national economy.
The resolution identifies outdated mindsets and inadequate recognition of the private sector’s role as primary obstacles. Legal and institutional frameworks remain inconsistent, with unresolved issues hampering the sector’s progress. Property rights and business freedoms are not fully guaranteed, and private enterprises struggle to access critical resources such as capital, technology, land, natural resources, and skilled labor. Ineffective support policies, high business costs, and difficult-to-access incentives further exacerbate these challenges.
Resolution 68 is a clear indication of the Communist Party of Vietnam’s commitment to empowering its private sector as a cornerstone of economic growth, aligning with global market principles while maintaining its socialist orientation.
Urgent need for breakthrough solutions
The Politburo emphasizes the urgent need for comprehensive and transformative measures to unleash the private sector’s potential, says Resolution No. 68.
The resolution positions the private sector as a critical driver of national economic growth, job creation, productivity, competitiveness, industrialization, modernization, and the transition to a green, circular, and sustainable economy.
The resolution calls for eliminating biases against the private sector, recognizing its pivotal role in national development, and treating entrepreneurs as “warriors on the economic front.” It mandates full protection of property rights, business freedoms, and equal competition, ensuring private businesses can operate in all sectors not prohibited by law.
Ambitious targets for 2030 and 2045
Resolution 68 sets bold goals for the private sector:
– By 2030, the private sector is expected to contribute 55–58% of Vietnam’s GDP, with two million active businesses, including at least 20 globally integrated firms.
– By 2045, the private sector should account for over 60% of GDP, with three million businesses.
Cutting red tape by 30% in 2025
To achieve these targets, the Politburo outlines eight comprehensive tasks, focusing on institutional reform, resource access, capacity building, and creating a transparent, competitive business environment. Key measures include:
- Institutional reform: Shift toward market-driven economic governance, minimizing administrative interference and eliminating the “ask-and-give” mechanism. The resolution demands a modern legal framework that ensures a transparent, stable, and low-cost business environment. By 2025, administrative processing times, compliance costs, and business conditions must be reduced by at least 30%.
- Resource access: Ensure non-discriminatory access to capital, land, natural resources, technology, and skilled labor. The state will offer a minimum 30% reduction in land lease fees for private businesses during the first five years of their contracts.
- Support for SMEs: Introduce market-based policies to support small and medium-sized enterprises (SMEs), including waiving business license fees and exempting corporate income tax for SMEs in their first three years.
- Property and business rights: Strengthen protections for property rights, business freedoms, and contract enforcement to foster a level playing field.
- Modern governance: Transition from control-based to service-oriented public administration, prioritizing citizens and businesses. Modernize governance with data-driven decision-making.
