Van Thanh canal in Ho Chi Minh city. Photo: VNA  

Ho Chi Minh City’s authorities and businesses operating in the southern metropolis have stepped up strategic orientations and concrete action programmes to translate Resolution No.68-NQ-TW of the Politburo into practice and create conditions for the private sector to make breakthroughs and become a key growth driver.

Resolution No.68-NQ-TW on developing private economic sector for the first time identifies the private sector as the “most important driver” of the national economy. In the country’s largest economic hub, efforts are underway to turn this strategic orientation into practical programmes, reforms and business opportunities.

Home to more than half of Vietnam’s existing enterprises, Ho Chi Minh City plays a pivotal role in realising the resolution’s goals. Soon after the resolution was adopted and the two-tier local administration model came into operation, the municipal authorities moved quickly to roll out concrete measures to implement it.

Under the targets set by the resolution, Vietnam aims to have about two million private enterprises by 2030. Ho Chi Minh City alone expects to host around 750,000 by that time, contributing 55–58% of the city’s gross regional domestic product (GRDP) and 50–55% of total budget revenues, while maintaining average annual growth of 10–12%. By 2045, the number of private enterprises in the city is projected to rise to between 1.05 million and 1.25 million.

These targets were outlined in Decision No. 2205/QD-UBND, which implements the municipal Party Committee’s action programme for carrying out Resolution 68, issued in October last year. The document emphasises the need to build a fair and transparent business environment, protect freedom of business and lawful property rights for enterprises, and treat private sector development as a long-term strategic task.

Accordingly, municipal departments, sectors and localities have been asked to urgently draw up development plans in line with the resolution, aiming to create favourable conditions for businesses to confidently expand investment and production.

Administrative reform has been identified as a key priority. The city targets cutting at least 30% of processing time for administrative procedures and reducing compliance costs by the same margin. Greater application of digital technologies, artificial intelligence (AI) and big data in public administration is also being promoted.

Procedures related to market entry and exit, land, investment, construction, taxation, customs, insurance, intellectual property, standards and regulations are being reviewed to enhance transparency and streamline processes.

Nguyen Van Duoc, Chairman of the municipal People’s Committee, has stressed that while the city has strong potential to attract investment, cumbersome administrative procedures could drive businesses away. The city is therefore pushing to shift from a management-oriented administration to a service-oriented one, urging officials to place businesses and citizens at the centre of public services.

The city continues to propose improvements to national policies on finance, taxation and financial management to facilitate business expansion and encourage the development of a modern, globally integrated enterprise community.

Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Union of Business Association (HUBA), said the key to implementing Resolution No. 68-NQ/TW lies in ensuring the private sector has equal access to land, credit, investment opportunities and market information. The municipal authorities have been working to remove major bottlenecks related to land, capital and high-quality human resources while promoting public–private partnerships in infrastructure and technology projects.

The city is also implementing Resolution No. 98/2023/QH15 of the NA on special development mechanisms, including stimulus loans supporting green and digital transformation. Businesses investing in logistics infrastructure may receive interest rate support of up to 50%, helping reduce costs and strengthen competitiveness.

With these efforts, Ho Chi Minh City aims to improve the business environment and enable the private sector to become a stronger driver of sustainable economic growth./.