Economist Hai Loc told VietNamNet recently that the private economy, understood as officially registered private enterprises, contributes about 28 percent of GDP. This figure was obtained from authoritative statistical sources.

This is a significant and groundbreaking revelation. It shows that Vietnam’s private economic sector has risen strongly, becoming the largest contributor to GDP, surpassing the state economic sector (around 21 percent), the FDI sector (over 20 percent), the individual economy (21 percent), and the collective economy (1 percent).

The statistical sector must clarify this gray area to support the development of Vietnam’s private economic sector.

A century-long vision

Resolution 68 clearly presents a new vision: the private sector is the most important driving force of the national economy, a pioneering force that promotes growth, creates jobs, enhances labor productivity, national competitiveness, industrialization and modernization, and restructures the economy toward green, circular, and sustainable directions.

The resolution sets strong demands: “Completely eliminate prejudiced perceptions, mindsets, notions, and attitudes toward Vietnam’s private economy; accurately recognize the critical role of the private economy in national development.”

This represents a remarkable leap in awareness and thinking.

Some recent perspectives on this sector include 2017 Resolution 10, which says the private economy is an important driving force for economic development. 

The state economy, collective economy, and private economy are the core for developing an independent, self-reliant economy, the resolution states.

Resolution 09 notes that the entrepreneurial class is a force with a significant role in the cause of national industrialization and modernization.

The viewpoint about the private sector, therefore, has changed step by step, from a “force with a significant role” to “an important driving force” and now “the most important driving force”.

Party Chief To Lam clearly affirmed in an article on the private economy: “The state must adopt the management method suited to market mechanisms, ensuring the right to business freedom, property ownership, and equal competition for the private economy; eliminate all barriers, enhance policy transparency, eradicate group interests in policymaking and resource allocation, and avoid discrimination between the private economy, state enterprises, and foreign-invested enterprises in all policies. 

“At the same time, consistently follow the principle ‘everyone has the right to freely engage in business in industries not prohibited by law,’ design policies to reassure investors, enterprises, and entrepreneurs, and foster stronger trust between the state and the private economy, thereby encouraging enterprises to boldly invest, innovate, and participate in strategic business fields.”

PM Pham Minh Chinh has also emphasized this spirit. At a meeting of the Socio-Economic Subcommittee preparing for the 14th Party Congress, he said: "Consider the private economy as the most important driving force in promoting economic growth."

National Assembly Chair Tran Thanh Man stressed that the private economy is a decisive factor in achieving the targeted 8 percent growth rate.

Harmonious chorus

Like Hai Loc, many reputable economists are highly optimistic about the future development of the private economy.

Cung, who has valuable studies about the business environment over decades, said: “I feel that reforms have never been as favorable as they are now. The Party Chief has opened up full opportunities and space, and now is the time to implement them in documents and laws. I am very excited about the new resolution on the private economy.”

“The system will surely change in line with the General Secretary’s directive to eliminate the mindset of ‘if it can’t be managed, ban it.’ This is also what we expect from the new resolution on private economy development,” he added.

Tran Dinh Thien, former Director of the Vietnam Institute of Economics, said: “Resolution 68 will help remove all constraints on development, establishing a new institutional framework for enterprises to thrive. In the current ‘ask-and-grant’ mechanism, they cannot fully promote their potential.”

He noted that after the 6th Party Congress in 1986, with policies allowing workers to create their own jobs and invest capital in production and business, the private sector has exploded. This economic sector then helped revive an economy that was in crisis, facing shortages of food and clothing.

He said: “The current moment shares many similarities with 1986. I believe there has never been a more favorable opportunity for the country and its economy to realize the aspiration of development and rise to become a developed nation.”

Tu Giang - Lan Anh