The Politburo’s Resolution No. 68, issued on May 4, 2025, marks a pivotal policy shift in support of Vietnam’s private sector. With more than 940,000 enterprises and five million household businesses currently operating, the private sector is now officially recognized as the most important driver of the national economy. The resolution mentions the term “national competitiveness” three times—underscoring that private sector development is inseparable from the country’s integration into the global economy. A structural gap in an open economy After nearly two decades of building an export-led growth model, structural weaknesses in Vietnam’s economy are becoming increasingly apparent. As a highly open economy, Vietnam is particularly vulnerable to shifts in global markets and trade policies—as illustrated by recent U.S. tariff actions. A widening gap has formed between two economic segments: the foreign-invested sector, which exports according to international standards, and domestic enterprises, many of which still operate within the limits of “Vietnamese standards for Vietnamese consumers.” The golden era of leveraging tariff reductions under free trade agreements (FTAs) to boost exports is coming to an end. With most tariffs now reduced to zero, the future of trade will be shaped by competition in production capacity and product quality. Countries that […]
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