New momentum & expectations for private sector

Thanks to institutional changes, Vietnam’s private economic sector has been constantly developing in recent years, which is an important driving force in the cause of national development and renewal. The sector now makes up around 40% of the GDP and 30% of tax revenues, and employs around 85% of the country’s total labor force.
After three years of implementing the 12th Party Central Committee’s Resolution No. 10-NQ/TW of 2017, on developing the private sector into an important momentum of the economy, private enterprises in Vietnam have grown in size, quality and quantity, and continues to be a main force for national economic growth. The private sector has made important contributions to economic growth, tax payments, employment generation and maintenance of social security. Many domestic groups are now internationally known, including Vingroup, Sun Group, T&T Group, Thaco, Vietjet, TH True Milk and Masan, while many others have become major exporters with revenues hitting millions of US dollars. During the outbreak of COVID-19, private enterprises joined the government and related authorities in controlling the epidemic, which proved to be an effective collaboration between the government, enterprises and the people.

“Nearly 10,100 enterprises were established nationwide in January 2021.”
Ministry of Planning and Investment
The draft socio-economic development strategy for 2021-2030 has touched upon issues to make the private sector truly an important driving force for Vietnam’s economy. 

Located in the southwest of Sa Pa town, Sun World Fansipan Legend is a complex of tourism sites, culture, entertainment and luxury hotels built by the Sun Group. Photo: Sun Group 

Vinhomes Royal City in Hanoi is a new urban area which combines a commercial center, entertainment and the most modern offices in Vietnam, built  by a private economic group Vingroup. Photo: VNP

At a silk factory of the Asia Silk joint-stock company, in Bao Loc, Lam Dong province. Photo: VNP 

A production line at Huyndai Thanh Cong automobile plant in Gia Vien district, Ninh Binh province. Photo: VNA 

Thanks to a methodical, large-scale and modern investment, with a closed process of "self-production, self-testing, self-distribution", VinEco clean vegetables are one of the "bright spots" that have gained the trust of Vietnamese consumers. Photo: VNP

A cooperative growing VietGap watermelons at hamlet 1, Vinh Thuan Tay commune, Vi Thuy district, Hau Giang province. Photo: VNA 

Hoa Phong aquatic cooperative in Hoa Phong commune, My Hao district is a typical model of Hung Yen province in farming clean fish, earning tens of billion dong/year. Photo: VNP

To that end, Prime Minister Nguyen Xuan Phuc recently chaired a cabinet meeting to discuss a plan on comprehensive renewal of state management of the economy in implementation of Resolution No. 10-NQ/TW.

Speaking about this plan, the Prime Minister stressed, “We understand that this is an important plan which has a large size and wide scale with major impacts on many industries and sectors, particularly in the new context of national development after the 13th Party Congress.”

“By the end of 2020, Vietnam had over 800,000 private enterprises operating under the Enterprise Law and more than 5.4 million business households.”
Ministry of Planning and Investment
Under this plan, by 2030 the mode of state management will be renewed basically and comprehensively toward a digital government which transforms from control and management into construction, from direct into indirect intervention, and from pre- to post-inspection in accordance with international practices, aiming to create a favorable business environment to develop all economic sectors and fulfill all the targets set for the private sector under Resolution No. 10-NQ/TW and Government Resolution No. 98/NQ-CP.

2021 is a key year for a new period of economic development from 2021-2025, and also from 2021-2030. With the achievements of the 2016-2020 period and management lessons learned, together with private enterprises’ efforts and the determination of the entire political system, this year’s socio-economic targets are expected to be fulfilled comprehensively.

Story: VNP Photos: VNA, VNP & Sun Group
Translated by Nguyen Tuoi