Private sector poised to play stronger role in country’s growth

Private sector poised to play stronger role in country’s growth

Statistics indicate that private companies are not only participating in infrastructure development but increasingly taking leading roles in mobilising investment capital.

Workers at an electronic company. Businesses have invested in science and technology, innovation, digital transformation and green transition to develop cleaner and safer production models. VNA/VNS Photo

 Nearly a year after the issuance of Resolution No. 68-NQ/TW by the Politburo on private sector development, policy support for the sector has begun to take clearer shape.

The message is straightforward - the private economy is no longer viewed as a supporting force but as one of the most important engines of growth.

Over the past year, the Party and Government have introduced a series of measures aimed at turning that orientation into concrete action. Institutional reforms, improvements to the legal framework and expanded opportunities for private investment, particularly in strategic infrastructure, are gradually opening more space for private enterprises, according to industry insiders and economists.

From management to support

A key message of the resolution, issued on May 4, 2025, is the shift from a 'management' mindset to a more supportive approach. Rather than focusing primarily on administrative oversight, the State is moving toward protecting legitimate business interests and building policy frameworks that encourage long-term investment.

According to Trịnh Thị Hương, deputy director of the Department of Private Enterprise and Collective Economy Development under the Ministry of Finance, implementation follows the 'six-clear' principle - clarity in responsibilities, tasks, timelines, processes, authority and outcomes - along with the 'three-easy' objective: policies that are easy to implement, easy to monitor and easy to evaluate.

Enterprises may double-count R&D expenses when calculating taxable income and allocate up to 20 per cent of taxable income for R&D investment. The measure is expected to encourage greater investment in innovation, science and technology and digital transformation.

One of the most visible changes since the resolution was issued has been the growing role of private enterprises in infrastructure development. Data compiled by the Ministry of Finance show that after several rounds of groundbreaking ceremonies and project inaugurations in 2025, the country now has 564 major projects with total mobilised capital of around VNĐ5.1 quadrillion. Of this amount, the private sector contributed more than VNĐ3.8 quadrillion, accounting for about 74.6 per cent.

The figures indicate that private companies are not only participating in infrastructure development but increasingly taking leading roles in mobilising investment capital.

Large private conglomerates have also expanded their investment strategies. T&T Group, for instance, approaches infrastructure development through integrated platforms linking energy, logistics, transport and urban development rather than focusing on individual projects.

Sun Group’s participation in building the APEC Convention and Exhibition Centre in Phú Quốc similarly highlights the expanding role of private firms in projects of national significance. According to the group’s representatives, such projects are designed not only to serve major international events but also to create long-term development momentum for the local economy.

Nguyễn Quốc Việt of the University of Economics under Vietnam National University–Hà Nội said that with appropriate mechanisms and stronger trust from the State, Vietnamese enterprises, including private firms, could take on a larger share of major infrastructure projects in the future.

Experts note that Vietnamese enterprises have gradually accumulated experience through their participation in major infrastructure initiatives, including projects financed through official development assistance and domestic investment.

Access to finance

Beyond infrastructure, the resolution is also expected to accelerate reforms in administrative procedures and access to finance. The Government has set a target of implementing 'three reductions': cutting compliance costs, administrative procedures and business conditions by 30 per cent. Administrative reform is considered crucial because cumbersome procedures ultimately translate into higher time and financial costs for businesses.

In the financial sector, credit guarantee funds and support programmes for private enterprises are expected to play a greater role in unlocking medium- and long-term capital.

Nguyễn Trí Hiếu, an expert in financial and real estate markets, said banks should expand support programmes for private enterprises, while credit guarantee funds need to work more closely with financial institutions to help businesses access loans.

Despite clearer policy direction, businesses say several obstacles still need to be addressed for the resolution to deliver its full impact.

One major concern is the lack of consistency in the legal framework.

According to Trần Văn Thế, chairman of Indel Investment and Development JSC, inconsistencies between laws and sub-law regulations often lead to additional procedures, increasing costs and prolonging project timelines.

Policy stability is another issue frequently raised by enterprises. Frequent regulatory adjustments and unclear transition mechanisms can create risks for investors, particularly for projects that require long-term planning.

Administrative procedures also remain cumbersome in some areas, slowing market entry for new businesses. Enterprises therefore recommend further shifting from pre-inspection to post-inspection mechanisms, allowing companies to begin operations more quickly while maintaining effective regulatory oversight.

From the business perspective, practical support measures are also needed to strengthen the capacity of private enterprises. Nguyễn Thị Tuyết Mai, director of Anima Vietnam Fashion Co., Ltd., said one priority should be strengthening supply–demand connections across industry value chains. A centralised market information platform providing data on import demand, technical standards and regulations in different markets would help businesses reduce information search costs.

Support for trade promotion and digital transformation is also important. Mai suggested authorities could pilot 'sample order' programmes allowing enterprises to test new markets on a smaller scale before expanding production.

Access to finance remains another major challenge. Businesses are calling for preferential credit packages, credit guarantee funds and lending mechanisms based on cash flow or confirmed orders. At the same time, import-export procedures and related standards should continue to be simplified and digitalised to shorten customs clearance times. 

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