There was a time when discussions revolved solely around the state economy, with state-owned enterprises (SOE) regarded as the backbone and foundation of the economic system. However, things are changing. In a recent article titled “Developing the Private Economy – A Lever for a Prosperous Vietnam,” Party General Secretary To Lam reflected on Vietnam’s 40 years of economic development. He highlighted the country’s journey from annual per capita income of US$96 in 1989 to US$4,700 in 2024, emphasizing the significant contributions of the private sector to this success. Once playing a role behind SOEs and foreign direct investment (FDI) firms, the private sector has surged in prominence over the past two decades. It has now become one of the key pillars of the economy and is increasingly recognized as the primary driver of national economic growth. The Party chief presented impressive figures: with nearly one million businesses and around five million household enterprises, the private sector currently contributes about 51% of GDP, over 30% of state budget revenue, and creates more than 40 million jobs, accounting for over 82% of the total workforce. It also contributes nearly 60% of total social investment capital. A story from 300 years ago The […]