The nearly-40-year journey of Doi moi (Renewal) has been marked by a resilient and breakthrough-making Vietnam aspiring to develop. From an inefficient, centrally-planned economy with per capita income of only USD 96 in 1989, Vietnam has risen strongly and is expected to advance to upper-middle income status, with income exceeding USD 5,000 per person per year by the end of 2025. This miracle results from not only the correct development path under the Party’s leadership, marked by bold and decisive institutional, policy and integration reforms, but also from the hard work, creativity, determination, and unceasing efforts of our entire nation.

What is even more pride-worthy is that Vietnam's economic growth rate is always twice as high as the average of that in developing countries despite global economic fluctuations. From being a poor economy relying on international aid, Vietnam has continuously made strong breakthroughs to become the 24th largest economy in the world in terms of purchasing power parity (PPP). Achievements are not only recorded in the economic field but also in social progress, contributing to an increasingly prosperous and happy life for the people.

This success is considerably attributable to the private economic sector's contributions. In the early stage of Doi moi, the private economic sector only played a minor role, and the economy mainly relied on the state sector and the foreign direct investment (FDI) sector. Over the past two decades, especially since the Politburo issued Resolution 09 in 2011 and the Party Central Committee issued Resolution 10 in 2017 on the development of the private economic sector, this sector has risen strongly, becoming one of the most critical pillars of the economy and increasingly establishing itself as the most important driving force for the national economic growth. With nearly 1 million enterprises and about 5 million individual business households, the private economic sector currently contributes about 51% of GDP and more than 30% of the state budget, creates more than 40 million jobs, accounts for over 82% of the total workforce in the economy, and makes up nearly 60% of total investment across the entire society.

The private sector has not only helped expand production, trade, and services but also made an important contribution to improving labour productivity, promoting innovation, and increasing national competitiveness. The strong rise of many Vietnamese private enterprises has not only enabled them to dominate the domestic market but also to gain a foothold in international markets. This proves that if there is a favourable environment for development, Vietnamese enterprises are fully capable of reaching far and competing fairly with global companies.

However, despite its increasing contributions, the private economic sector still faces many barriers that hinder its development, preventing it from making breakthroughs in terms of scale and competitiveness. Many individual business households still follow old business practices, lack the motivation to develop into enterprises, and are even "reluctant to grow." The majority of private businesses in Vietnam are small- and micro-sized enterprises with limited financial potential and management skills, which lack connectivity with one another as well as with the foreign direct investment sector, have yet to make full use of opportunities generated by the Fourth Industrial Revolution, and are slow in digital transformation. Very few enterprises have invested in research and development (R&D) while they also pay little attention to business model reform, technological innovation, or new product creation. Therefore, it is very difficult for them to increase added value, enhance competitiveness, raise corporate value, and reach international levels.

In addition to their own limitations, private enterprises face many barriers in accessing resources, especially credit, land, natural resources and high-quality human capital, especially in the fields of technology, engineering and finance. Meanwhile, some state-owned enterprises hold many resources, land, capital and high-quality human resources but have not leveraged them effectively, or have even wasted them. Besides, there are many shortcomings and overlaps in the legal system, the business environment still has many obstacles, and administrative procedures are complicated, time-consuming, costly, and pose latent risks.

On the other hand, the Government's preferential and support policies have not proved truly effective across economic sectors, nor sufficiently accessible to the private economic sector.

In many cases, state-owned and foreign enterprises still receive more incentives than their private counterparts. State-owned enterprises often have more favourable access to land, capital, and credit, while foreign firms often receive better support in terms of taxes, customs procedures, and access to land. In addition, corruption and informal costs still exist, imposing an invisible burden on private enterprises, reducing their production and business efficiency, and causing hesitation as they consider expanding investment.

Obviously, the development limitations of private enterprises stem partly from the shortcomings of the institutional system, economic policies, and the business environment. These bottlenecks not only restrain the growth rate of the private economic sector, keeping its contribution to GDP nearly unchanged for more than a decade, but also preventing the economy from increasing added value and escaping from the middle-income trap, thereby slowing the process of turning Vietnam into a developed, high-income country by 2045 as targeted in the Party’s resolution and aspired by the people.

Looking towards the common vision of the country, the private economic sector also needs to define its mission and vision more clearly. It must be a pioneering force in the new era, thus successfully implementing the industrialisation and modernisation of the economy, enhancing national competitiveness, exercising social responsibility, helping to improve people's quality of life, participating in the building of a civilised and modern society, and contributing to a dynamic and internationally integrated Vietnam. The private sector should strive to become the main and leading force in technology application and innovation so as to achieve the goal of contributing about 70% of GDP by 2030; more and more private enterprises gain the capacity to compete globally, mastering technology and deeply integrating into international value chains and supply chains; joining the whole country to build a dynamic, independent, self-reliant, resilient, and prosperous Vietnam.

In order for the private economic sector to fulfil its mission and realise that aspirational vision, the most important factor is to continue to make breakthrough reforms in the institutional framework, policies, and the business environment so that the sector can maximise its potential and become the driving force enabling the economy to reach the international market. A prosperous economy cannot rely solely on the state sector or foreign investment, but must rely on its internal strength, which is a strong private sector playing a pioneering role in national renewal and development. The national economy can be truly prosperous only when all people engage in productive work to create material wealth, a society where every household and every person is enthusiastic about working.

To meet this requirement, we need to thoroughly reorient the views and perceptions across the entire political system about the role of the private economic sector as the country's leading growth engine. This requires a fundamental change in policy making, the overcoming of limitations, and the promotion of the superiority of the market mechanism to support the private sector in improving labour productivity and innovation. The State must adopt a management method appropriate to the market mechanism, ensure the right to conduct business freely, the right to property ownership, and the right to fair competition for the private sector; remove all barriers, make policies transparent, eliminate group interests in policy making and resource allocation as well as discrimination in all policies against the private economic sector in favour of state-owned enterprises and foreign-invested enterprises. At the same time, the State must stay consistent with the viewpoint that "everyone has the right to do business freely in sectors not prohibited by law," develop policies that reassure investors, businesses, and entrepreneurs, and create stronger trust between the State and the private economic sector, thereby encouraging businesses to proactively invest, innovate, and participate in strategic economic sectors.

The Politburo’s upcoming resolution on the private economic sector needs to encourage, support, and orient the development of the private sector, generate a breakthrough impulse, usher in an era of growth for Vietnamese private enterprises. The development of the private economic sector must be identified as a long-term strategy and policy of the country. The private sector, the state sector, and the collective sector form the core for building an independent, self-reliant, and resilient economy. In particular, focus must be placed on implementing the following key solutions:

First, it is essential to continue to accelerate the completion of fully-fledged market economy institutions in the direction of socialism, modernity, dynamism and integration.

This is a prerequisite for the private sector to grow rapidly and sustainably. To achieve this, the State must focus on macro-economic stability and institutional improvement, ensuring that the economy operates according to market principles, minimising intervention, eliminating administrative barriers, and ending the “ask-give” mechanism, truly managing the economy based on market principles and using market tools to regulate it. In particular, strict control must be exercised over monopolistic enterprises to prevent policy manipulation to protect healthy competition and ensure equal opportunities for private businesses to thrive. The core of perfecting the market economy institutions lies in clearly defining the role of the State in the economy, with the State focusing on macro-economic regulation, creating a favourable business environment, ensuring the effective functioning of market mechanisms, and upholding social equity. Promoting the development of the private sector must be regarded as a central task at present.

Second, it is crucial to effectively protect property rights, ownership rights, freedom of business, and contract enforcement for private enterprises.

As one of its key functions in a modern market economy is to safeguard investors' property rights, the State must establish and enforce a robust legal framework for ownership rights to intellectual property and intangible assets, while minimising legal risks and avoiding abrupt policy changes that could harm businesses. A support and protection mechanism should be put in place for private investors, particularly startups and innovative enterprises, to help them operate with confidence and grow smoothly. Moreover, a modern socialist-oriented market economy requires a transparent, efficient, and effective contract enforcement system, giving businesses confidence in their commercial transactions and investments.

To achieve this, the State should reform the commercial judicial system, shorten the time needed to settle contract disputes, reduce business costs and risks, address cases of contract violations that currently lack effective sanctions, and enhance the transparency and efficiency of economic courts and commercial arbitration to ensure fair and impartial rulings, helping businesses protect their legitimate interests. Enhancing the monitoring of law enforcement is also crucial to address inconsistencies between central and local authorities, strictly penalise misuse of inspections and audits to harass businesses, and increase investment and support for the development of the private economy. At the same time, violations of the law by enterprises must be firmly addressed, and enterprises must be required to uphold law compliance and ethical business values, thereby promoting the healthy development of the private sector.

Third, along with the strong consolidation of state-owned enterprises, particularly major state economic groups, priority should be given to building large-scale private economic conglomerates with global and regional reach, extending active support to small- and medium-sized enterprises (SMEs) while also fostering the economic development of households and cooperatives, and encouraging private firms’ involvement in the country’s strategic areas by recognising their crucial role in the structure of a socialist-oriented market economy.

The outdated mindset of prioritising state-owned enterprises over private businesses must be eliminated, as must the monopoly of state enterprises in certain sectors. The development of large, strong private economic groups with global competitiveness should be promoted, enabling them to lead and support domestic counterparts in deeper integration into global value chains. At the same time, dedicated policies are needed to support SMEs, family businesses and cooperatives, encouraging business households to transition into formal enterprises and promoting a modern, efficient cooperative model.

To ensure that the private economy not only grows in scale but also contributes considerably to the country’s long-term development, private enterprises should be encouraged to engage in strategic sectors such as critical infrastructure, high technology, key industries, and sectors essential to energy security. Opportunities for private enterprises should be expanded in major national projects, allowing them to collaborate with the State in strategic industries and special sectors, thereby enhancing research capabilities and technological innovation. The State should establish mechanisms and policies allowing the private sector to take on key national projects and urgent tasks, such as high-speed railways, urban railways, energy infrastructure, digital infrastructure, defence industry and security-related projects.

Fourth, it is necessary to drive a wave of entrepreneurship, innovation, digital transformation, and the adoption of new technologies.

This is a key factor for enabling the private sector to achieve breakthroughs and reach international standards. Strong and effective policies are needed to help private enterprises apply technologies, innovate products, and increase added value. The State should establish regulatory sandboxes for emerging technologies and encourage the private sector's investment in pioneering fields such as artificial intelligence (AI), blockchain, big data, e-commerce, financial technology (fintech), and smart healthcare. Financial support policies and tax incentives should be introduced for enterprises investing in research and development (R&D). Additionally, a robust startup ecosystem should be nurtured, creating a fertile ground for Vietnamese startups and "tech unicorns" to expand globally.

Fifth, institutional reform is needed to build a business-friendly and service-oriented administration that truly serves enterprises and the nation.

Drastic institutional reform must be carried out, based on a renewed mindset that prioritises a streamlined and business-supportive administration. Bold steps must be taken to reduce administrative procedures and business conditions, accelerate digital transformation, and apply technology to state management to cut compliance costs, informal expenses, and processing time. An effective mechanism for policy dialogue and feedback should be established, making it easier for the private sector to participate in economic policymaking, ensuring practicality and feasibility. The goal is for Vietnam’s business environment to rank among the top three in ASEAN within the next three years.

Sixth, it is essential to fully unlock development resources for the private economic sector, ensuring it has effective access to critical resources such as capital, land, human resources, and technology. The private sector must be further integrated into the global economy, enhancing Vietnam’s economic standing on the global stage while protecting businesses from economic risks.

More effective policies are needed to ensure private enterprises can access resources in a fair, transparent and efficient manner, thus optimising their use. Capital mobilisation channels for private businesses should be expanded, such as the securities market, corporate bonds, venture capital funds, credit guarantee funds, and modern financial instruments such as fintech and community-based capital mobilisation. A stable and transparent land policy must be developed to facilitate private enterprises' access to land at reasonable costs.

The State should provide strategic guidance and effective support for Vietnamese private enterprises to join the global supply chains, attract investment and advanced technologies, and shape a globally-minded entrepreneurial community. Special incentives should be introduced to encourage private investment in manufacturing and supporting industries, agricultural industrialisation, and high technology, rather than an overconcentration on real estate and short-term speculative sectors. Mechanisms and policies should be established to protect private enterprises from economic shocks, especially amid global uncertainties, economic downturns, and market fluctuations.

Seventh, the private economic sector must be developed on a sustainable foundation, with ethical business practices and social responsibility.

The State should promote the private sector's growth based on macro-economic stability, closely aligned with green development strategies, circular economy, resource efficiency, emission reduction, and environmental protection. Private enterprises must take the initiative in fulfilling their social responsibilities, not just through financial donations or charity, but also by adopting responsible business practices, improving workers' welfare, supporting community development, and practising transparent and efficient corporate governance. A strong business culture rooted in ethics, fairness, and integrity should be cultivated to prevent fraud and ensure equitable treatment of customers, partners, and employees. Additionally, private enterprises should actively join social welfare programmes along with the State, contributing to social equity, poverty reduction, and the creation of a civilised, humane and prosperous society where businesses' success is closely tied to the nation's shared prosperity.

The private economic sector plays a vital role in shaping the future of Vietnam’s economy. We all believe that if the State establishes appropriate institutions, sound policies, and a favourable business environment, the private economic sector will thrive and grow robustly, not only driving high economic growth but also helping our country achieve high-income status within the next two decades. Now is the time to act, to build a prosperous, dynamic Vietnam that increasingly advances on the global stage.

We are living in a historic moment, witnessing unprecedented technological advancements and a rapidly changing international landscape filled with both cooperation and competition where opportunities and challenges go hand in hand. Yet, with unwavering resilience, determination, and a burning ambition, Vietnam is fully capable of achieving new miracles in socio-economic development! A strong economy is taking shape, led by a generation of bold, innovative, and passionate Vietnamese entrepreneurs filled with business acumen and patriotism, writing a new chapter of success. A bright future - a socialist Vietnam standing shoulder to shoulder with global powers, as envisioned by President Ho Chi Minh - is gradually becoming a reality in the near future./.