After years of ad hoc growth, Vietnam’s private sector is gaining clearer direction as the recent landmark resolutions from the Politburo and the National Assembly (NA) will help dismantle long-standing biases and institutional barriers, paving the way for a breakthrough. Shifting mindset drives transformation Vietnam’s private sector, with some 800,000 active businesses, accounts for nearly 45% of the country’s GDP, contributes about one-third of state budget revenue, makes up over 40% of total investments in the economy, and provides jobs for 85% of the national workforce, showed data from the Ministry of Finance. Yet the sector has not reached its full potential, as the Politburo once acknowledged. It has long been held back by old perceptions, inconsistent regulations, and limited access to capital, land, and skilled labor. High costs, weak policy support, and poor protection of business rights have hampered its growth. Things are changing in response to the call of a new era. Fairer mechanisms and improved perceptions are being introduced to better recognize the vital role of the private sector. This transformation is backed by the Politburo’s Resolution 68, issued on May 4, and the National Assembly’s resolution passed on May 17, along with the Government’s action plan […]
To read more, please click here.
