(VOVWORLD) - The private economic sector is growing steadily, emerging as one of the most important pillars of the national economy and increasingly proving to be the key driving force for economic growth. Economists suggested the private sector take the lead in the new era.
 Vietnam promotes private sector as pillar of double-digit growth |
The private economy was officially recognized in the Documents of the 6th National Party Congress in 1986 and reaffirmed in subsequent Resolutions. Resolution 10 of the 12th Party Central Committee, adopted in June 2017, identified the development of the private economy as a crucial driver of the socialist-oriented market economy. Currently, the private economic sector consists of more than 940,000 enterprises and more than 5.2 million business households.
A strong private sector makes a strong economy
Vu Duc Giang, Chairman of the Board of Directors of Viet Tien Garment Corporation and Garment Corporation 10, as well as Chairman of the Vietnam Textile and Apparel Association, said it’s time for the troika of the economy – the State sector, the FDI sector, and the private sector – to be led by the most dynamic force—the private sector. Once barriers are removed, and opportunities are fairly distributed, the private sector will be the strongest driving force propelling Vietnam toward prosperity.
Mr. Giang said that without a competitive private sector Vietnam risks being merely an "outsource manufacturing workshop" rather than a true production and technology hub capable of competing fairly with other economies. He said that wherever Vietnamese goods go, Vietnam’s "soft border" expands. It’s essential, he said, to enhance the production capacity of the private sector.
Nguyen Quang Huan, a deputy of the current 15th National Assembly and Chairman of the Board of Directors of Halcom Vietnam Joint Stock Company, said that without leveraging the private economy as a driving force, Vietnam cannot achieve its double-digit growth target.
According to Tran Van Le, Director of Phuong Linh Electromechanical Group Joint Stock Company, Party and State leaders have delivered strong policy messages on boosting the private sector, which has increased businesses’ confidence to expand production and contribute to national development.
"Such direction from the Party and the Government delivers a very important message. The Vietnamese economy has a great opportunity to integrate with the global economy. As a business owner, I’m very proud and encouraged to expand my investment," said Mr. Le.
Nguyen Duy Hung, Chairman of the Board of Directors of Tan Hiep Phat Trading and Service Company Limited, said: "With direction from the highest levels of leadership, including the Party General Secretary, the private sector gains greater confidence, ambition, and determination to continue contributing to national economic development."
To grow, private enterprises must change their mindset. They need to adopt a long-term vision, clearly define development phases, establish professional management structures, implement modern management models, and adopt new technologies and digital transformation and sustainable green development practices.
Entire political system engages in removing barriers
The political system’s support for the efforts made by enterprises will play a crucial role in making the private economy the primary growth driver of the national economy. During a working session on March 7 with the Party Central Committee’s Policy and Strategy Commission, General Secretary To Lam said the private sector must be allowed to participate in all sectors and industries that are not prohibited by law.
The Party leader said: "We must have a clear strategy for private economic sector development, which must align with economic progress, new geo-economic and geopolitical dynamics, and global changes in order to ensure that the private economy is capable of growth, adaptation, resilience, and strong competitiveness. We also need a strong focus on infrastructure and human resource development to support the expansion of the private sector."
The Steering Committee for Drafting the Private Economic Development Project convened its first meeting on March 15 to outline a plan for submission to the Politburo. Breakthrough solutions and policies will be proposed to make the private sector a core force in Vietnam’s industrialization and modernization. Authorities are organizing seminars and conferences and gathering input from experts and the general public.
The private economy plays a crucial role in shaping the future of Vietnam’s economy. With a strong institutional framework and a supportive business environment, the private sector will be empowered to make significant breakthroughs, drive strong economic growth, and accelerate Vietnam’s transition to a high-income economy within the next two decades.