Vietnam’s private sector is expanding, but how does it compare on a global scale? The 12 largest private enterprises in Vietnam have a combined asset value of approximately $70 billion, roughly equivalent to a single major foreign corporation.

Despite rapid domestic growth, Vietnam’s private businesses remain relatively small compared to international competitors.

A prominent Vietnamese businessman recently shared that provincial leaders have been actively courting investors, offering incentives and preferential treatment to attract major business projects.

This stands in stark contrast to two decades ago when businesses had to actively seek out investment opportunities. Now, it is the investors who are being pursued by local governments eager to boost economic growth.

Vietnam’s private sector currently generates employment for 85% of the workforce and contributes nearly 50% of the country’s GDP. With administrative reforms and provincial restructuring underway, local leaders are in a race to secure large-scale investment projects.

These investments are crucial in helping provinces meet their ambitious 2025 economic growth targets, boosting local tax revenues, creating jobs, and improving living standards.

For example, Thaco Truong Hai contributes between 60 and 70% of Quang Nam’s annual tax revenue, while Hoa Phat Group paid approximately $525 million in taxes in 2024.

This figure is nearly equivalent to the combined tax revenue of six provinces: Dien Bien, Yen Bai, Ha Giang, Cao Bang, Bac Kan, and Dak Nong.

Vietnam’s private sector has seen fluctuations in its presence among the country’s largest enterprises. In 2007, only 103 private firms made it into the top 500 largest companies, but by 2017, the number had risen to 286.

In 2019, there were 291 private firms on the list, increasing to 314 in 2020 and 315 in 2022. However, this number has since declined to 225 over the past two years.

Since the Doi Moi economic reforms in 1986, Vietnam’s economy has transformed into a multi-sector market, allowing private enterprises to play an increasingly significant role.

Several Vietnamese companies have surpassed the billion-dollar revenue mark, including Vingroup, Masan Group, Vietjet Air, Vinamilk, and Techcombank. Pham Nhat Vuong, Vietnam’s richest man, consistently ranks among the world’s billionaires.

Leading private corporations such as Vingroup, Vietjet, Truong Hai, Masan, TH Group, and Loc Troi are making strong contributions to key industries, including tourism, food processing, and technology.

More recently, Vingroup, Sun Group, BRG, and FPT have expanded into emerging fields such as smart cities, education, electric vehicle manufacturing, and high-tech agriculture.

Vietnam’s private sector remains a key driver of the economy, generating 85% of jobs, contributing nearly 50% of GDP, accounting for 40% of total investment in the economy, generating 30% of state budget revenue, and representing 25% of total export value.

Despite this impressive growth, Vietnam’s private sector remains modest in comparison to global standards. A 2024 report from the Ministry of Planning and Investment estimated that the total assets of the 12 largest private corporations in Vietnam were around $70 billion, a figure that is comparable to the assets of a single multinational corporation. Additionally, Vietnam has nearly 980,000 registered businesses, a relatively small number considering nearly 40 years of economic reform.

Vietnam’s private sector remains dominated by micro and small businesses. Micro-enterprises account for 69% of all registered businesses, while small enterprises make up 25%.

Medium-sized businesses represent just 3.5%, while large enterprises account for only 2.5%, or around 25,000 firms, with the private sector making up about a third of that total.

Business density varies significantly by region. Only Hanoi, Ho Chi Minh City, and Da Nang have more than 20 businesses per 1,000 residents. In contrast, 20 provinces have fewer than three businesses per 1,000 residents, while 15 provinces have between three and four businesses per 1,000 residents.

The private sector is highly concentrated in three key industries: manufacturing, which accounts for approximately 16%; construction, which represents around 14 to 15%; and wholesale, retail, and vehicle repair services, which make up about 37%.

Meanwhile, high-value service industries such as logistics, technology, healthcare, and education remain underdeveloped in the private sector. Furthermore, only 40% of private enterprises report profitability, and less than 30% of micro-enterprises generate profits.

Over the decades, Vietnam’s private sector has evolved from being unrecognized to becoming an essential pillar of the economy. However, many challenges remain.

Access to capital and credit remains limited, the absence of mid-sized enterprises to bridge the gap between micro-businesses and large corporations weakens overall sector growth, and weak global integration leaves Vietnamese businesses vulnerable to external economic shocks.

Unlocking the full potential of Vietnam’s private sector will be key to sustaining economic growth and enhancing the country’s global competitiveness.

The critical question now is whether Vietnam’s preferential treatment for large investors will extend to all private entrepreneurs or whether only a select few billion-dollar enterprises will truly benefit.

Tu Giang