Private sector in Vietnam: challenges and new opportunities for 2025!

Private sector in Vietnam: challenges and new opportunities for 2025!

On May 31, 2025, Prime Minister Pham Minh Chinh led a crucial dialogue with businesses in Hanoi on the implementation of Politburo Resolution 68-NQ/TW on private sector development in Vietnam. This resolution, issued on May 4, 2025, aims to strengthen the private sector as a driving force of the national economy and improve Vietnam's competitiveness at the global level. The private sector already plays a significant role in the Vietnamese economy, contributing more than 50% of GDP, employing 82% of the workforce and responsible for over 30% of government revenue, as vietnam.vn reported.

Over the past 40 years, the private sector has grown to include over 940,000 businesses and more than 5 million household businesses. However, most of these companies, especially the numerous micro, small and medium-sized enterprises, face significant challenges. Labor productivity in the private sector is below the level of foreign-invested companies (FDI) and state-owned enterprises (SOEs). Nearly 98% of private sector companies struggle with limited competitiveness and operational efficiency. The numbers are alarming: by 2024, the number of active companies is expected to only be around 10 per 1,000 residents.

Challenges and goals

The digital transformation process in the private sector is progressing slowly. About 65% of small and medium-sized businesses do not have a digital strategy, limiting their innovation and technology capabilities. In addition, access to development resources such as finance, credit, skilled labor and land is often difficult. Small and medium-sized enterprises receive less than 20% of the banking system's total outstanding loans. These challenges hinder the development of the private sector and reflect the deficiencies in the institutional and legal system.

To address these problems, eight task and solution groups were defined in Resolution 68-NQ/TW. These are intended to drive innovation and reform by setting clear tasks with deadlines. By 2030, Vietnam aims to have 2 million active businesses, doubling the current number - a target that would see an increase to 20 businesses per 1,000 residents. In addition, a private sector contribution of 55-58% to GDP is targeted, with an average growth of 10-12% per year.

Strategies to promote the private sector

Various strategies are planned to strengthen competitiveness and innovative strength. The focus is on changing awareness of the role of the private sector and reforming institutions to improve the legal framework. In addition, bureaucratic hurdles should be reduced and access to crucial resources should be made easier. In particular, support for small and medium-sized companies and the promotion of research and development play a central role in the government's measures.

In addition, those responsible, including Vice Minister Le Tan Can, emphasize that new technologies and strategic competition represent both challenges and opportunities. Business associations and companies are called upon to increase their capacity and efficiency and to form a bridge between the business community and government authorities. In this context, it is also emphasized that large companies should support smaller companies.

The successful implementation of this resolution is crucial to strengthening the private sector and overall economic development of Vietnam. The various government institutions are responsible for monitoring these measures and cooperation between the different levels of government and business is essential for this thuvienphapluat.vn summarizes.