On March 7, General Secretary To Lam chaired a working session with the Central Policy and Strategy Committee, emphasizing the urgent need for a comprehensive strategy to drive the growth of Vietnam’s private sector.

The meeting focused on assessing the progress of Vietnam’s private economy, identifying obstacles, and proposing solutions to foster sustainable growth and global competitiveness.

Removing barriers to unlock private sector potential

General Secretary To Lam noted that Vietnam’s private sector contributes over 50% of GDP, 30% of state revenue, and employs approximately 85% of the workforce. However, he pointed out that many key targets remain unmet, signaling the need for policy adjustments.

Truong Luu Quang, Head of the Central Policy and Strategy Committee, presented an assessment outlining major challenges, including institutional barriers, weak competitiveness, and the absence of industry-leading private enterprises.

"This is a crucial time to break down barriers and fully unleash the power of the private sector. Any further delay will hinder our long-term national development goals for 2030 and 2045," Quang stated.

The committee called for revolutionary reforms, including regulatory improvements, streamlined administrative procedures, and increased access to financial resources.

Challenges facing small businesses and entrepreneurship

In his concluding remarks, General Secretary To Lam acknowledged the remarkable resilience of private businesses despite economic difficulties. However, he stressed the need to address key shortcomings:

The private sector remains fragmented, with a lack of large enterprises capable of leading key industries.

Weak supply chain integration and limited collaboration between private enterprises and other economic sectors.

A concerning trend where over 5 million household businesses remain reluctant to formalize or expand due to regulatory concerns and tax burdens.

"Many small businesses choose to stay small because they fear complex procedures and restrictive policies. This mindset must change to foster innovation and sustainable growth," he emphasized.

Strategic reforms to drive private sector development

General Secretary To Lam outlined key priorities to strengthen the private economy:

Changing perceptions and policies: Recognizing the private sector as the most critical driver of economic growth and ensuring businesses operate with minimal bureaucratic hurdles.

Creating a favorable investment environment: Improving business conditions, reducing regulatory red tape, and enhancing market transparency.

Developing competitive private enterprises: Encouraging the growth of leading companies in strategic industries to enhance Vietnam’s global trade standing.

Strengthening integration and resilience: Aligning economic policies with global trade shifts and geopolitical dynamics to ensure long-term sustainability.

Establishing a National Steering Committee for Private Sector Development

To implement these reforms, Prime Minister Pham Minh Chinh has signed a decision to establish the National Steering Committee for Private Sector Development.

The committee will be led by Prime Minister Pham Minh Chinh, with Deputy Prime Minister Nguyen Chi Dung overseeing the policy framework and economic strategy. Other key members include:

Minister of Finance Nguyen Van Thang, responsible for investment coordination.

Provincial leaders to ensure local-level implementation.

Representatives from the National Assembly’s Economic and Financial Committees to provide legislative oversight.

The committee’s primary mission is to draft a comprehensive private sector development strategy and submit it to the Politburo for approval.

As Vietnam navigates a rapidly evolving global economy, these reforms are expected to boost competitiveness, attract investment, and create a dynamic business environment for sustainable growth.

Quang Phong