PM urges private sector to lead Việt Nam’s economic resilience and long-term growth
PM urges private sector to lead Việt Nam’s economic resilience and long-term growth
Prime Minister Phạm Minh Chính urged private enterprises to play a key role in achieving Việt Nam’s 8 per cent growth target for 2025, contributing ideas and solutions to ensure long-term economic resilience.
Prime Minister Phạm Minh Chính (second right) meets with key business leaders on Monday. —VNA/VNS Photo |
Prime Minister Phạm Minh Chính urged private enterprises to play a pivotal role in achieving Việt Nam's ambitious 8 per cent economic growth target for 2025, calling on them to contribute ideas and solutions to overcome challenges and ensure long-term economic resilience and sustainability in the new era.
This call to action was made during a meeting on Monday, at which permanent Government officials and business leaders came together to discuss collaborative strategies for achieving this crucial growth target.
The Prime Minister acknowledged that 2024 was a challenging year for Việt Nam due to international conflicts, supply chain disruptions and Typhoon Yagi, but under the leadership of the Party and Government, and with business unity, Việt Nam overcame these obstacles and achieved key socio-economic milestones.
This year, the country is expected to face more challenges, including worldwide political instability, trade barriers and domestic issues. Chính stated that the Government has set growth targets for localities, ministries, agencies and State-owned enterprises, aiming for a national economic growth rate of at least 8 per cent.
This target is designed to build momentum for even bigger achievements, including double-digit growth in the years ahead, with the business community expected to play a pivotal role.
The Government plans to meet with banks, small- and medium-sized enterprises (SMEs) and foreign direct investment (FDI) businesses to address difficulties and offer feedback on policies, mechanisms and regulations.
Ministries have been instructed to review and report monthly on policy obstacles for necessary amendments, including tax breaks, VAT reductions and land rent adjustments. The Prime Minister stressed the need for strong support policies and pledged to streamline procedures, ensuring a better environment for businesses.
He encouraged businesses to engage in major infrastructure projects, such as high-speed rail and nuclear energy, which would not only improve infrastructure but also create new opportunities for domestic and foreign enterprises.
The Government will continue to focus on science and technology, innovation, digital transformation and new growth spaces. PM Chính urged private businesses to take part in these large projects and proposed suitable policies to support their involvement.
The PM invited business leaders to share their views and suggestions honestly and openly, to contribute to the country’s development. He reaffirmed that the Government would continue to support businesses, not just in difficult times but also as Việt Nam works to build a stronger, more sustainable economy with more opportunities for the 21st century.
Prime Minister Phạm Minh Chính (second right) meets with key business leaders on Monday. —VNA/VNS Photo |
Businesses contribute around 60 per cent of GDP
Minister of Planning and Investment Nguyễn Chí Dũng presented a report highlighting the significant role of businesses in Việt Nam’s economic growth.
As of 2024, the country has over 940,000 active enterprises, 30,000 co-operatives and more than five million household businesses. In 2024 alone, over 233,000 new businesses were established or resumed operations, marking a record high.
The private sector contributes approximately 60 per cent of GDP and 98 per cent of total export turnover, and employs 85 per cent of the workforce. Việt Nam’s economy grew by 7.09 per cent in 2024, ranking among the world’s fastest-growing economies, with a GDP of US$476.3 billion, ranking 33rd globally.
To further strengthen the private sector’s role in national development, Dũng outlined six strategic directions.
First, he emphasised recognising the pivotal role of businesses, especially private enterprises, as drivers of growth and competitiveness.
Second, a business-friendly environment should be created by simplifying administrative procedures, adopting a results-based regulatory approach and ensuring that policies focus on facilitating rather than restricting business activities.
Third, mobilising resources is crucial, with State investment guiding private capital into key infrastructure projects like expressways, high-speed rail and renewable energy.
Fourth, technology, innovation and digital transformation must drive future growth, supported by legal frameworks and incentives for high-tech industries.
Fifth, policies will be created to support the growth of large domestic businesses that can lead value chains and enter international markets, while improving the Investment Support Fund.
Finally, domestic consumption and market access for businesses will be expanded, helping local companies make high-quality products that can take over the local market.
Business insights
THACO, Vingroup, Hòa Phát, FPT and BRG all shared their insights into their future goals and contributions to Việt Nam's economic development.
THACO Chairman Trần Bá Dương emphasised the company’s commitment to developing the domestic automobile market, with a particular focus on hybrid vehicles. The company aims for a 32 per cent market share, targeting 100,000 vehicle sales this year.
In addition, THACO is expanding its role in mechanical engineering and industrial support, particularly with a 700-hectare industrial park in Bình Dương set to begin operations this year. The company will also contribute to the development of urban railways, manufacturing train cars and steel components. Furthermore, THACO is addressing agricultural challenges by implementing large-scale, sustainable and organic farming models.
Vingroup CEO Nguyễn Việt Quang highlighted the company’s efforts in sustainable development, focusing on energy infrastructure, the green economy and digital transformation.
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Prime Minister Phạm Minh Chính (second right) meets with key business leaders on Monday. —VNA/VNS Photo |
Vinfast, Vingroup’s electric vehicle arm, is pioneering the green transition with efforts to increase localisation rate and promote electric vehicle use. The company is also pushing for stronger State support, such as tax incentives, to drive adoption. Additionally, Vingroup is investing in AI and robotics, aiming to enhance its competitiveness through technological innovation.
FPT Chairman Trương Gia Bình discussed the potential of AI in driving Việt Nam’s growth. He advocated for the widespread adoption of AI in education to empower businesses of all sizes.
He proposed "making AI accessible to all”. For example, DeepSeek is helping make AI usable by small- and medium-sized businesses. Bình suggested quickly integrating AI into the national education system, starting from primary school. Strong Government leadership is needed to help Việt Nam become a leader in artificial intelligence, he noted.
Hòa Phát's Chairman Trần Đình Long expressed confidence in the steel industry’s growth, with plans to increase production by 15 per cent between 2025 and 2030. He also highlighted the importance of local raw material sourcing, citing Việt Nam’s large iron ore deposits, including the Thạch Khê mine, which could significantly reduce reliance on imports.
Long said the 2025-30 plan includes large public investments, particularly in urban railway projects in Hà Nội and HCM City, as well as the Lào Cai - Hà Nội - Hải Phòng railway, offering great opportunities for businesses.
Hòa Phát plans to invest VNĐ10 trillion (US$393 million) in a rail production plant. Hòa Phát has committed to supplying 10 million tonnes of steel for the railway, ensuring quality, timely delivery and competitive prices.
