Private economy identified as major driver of national development

Private economy identified as major driver of national development

Leaders from various agencies and the business community also proposed expanding mechanisms that would allow private enterprises to participate in strategic infrastructure and technology projects, thus promoting innovation and enhancing national competitiveness.

The conference on Vietnamese private enterprises and entrepreneurs and policies on Party members engaging in the private economy was organised in Hà Nội on Monday. — Photo diendandoanhnghiep.vn

At a conference on Monday, Vietnam Chamber of Commerce and Industry (VCCI) Chairman Hồ Sỹ Hùng highlighted the important role of the private sector in Việt Nam’s socio-economic growth and called for greater opportunities for private enterprises to participate in strategic national projects.

The event focused on the role of Vietnamese private enterprises and entrepreneurs in renewing the country’s development model and policies on Party members engaging in the private economy.

It was jointly organised by the Central Policy and Strategy Commission and the VCCI and was held in Hà Nội. 

Hùng said that the modern business community is no longer limited to traditional business activities, but is increasingly becoming a pioneering force in innovation, digital transformation and green economic development.

For the private sector to truly become one of the most important driving forces, in line with the Party’s new orientation, there must be an institutional environment that is sufficiently open and secure.

“To give private enterprises the confidence to make long-term investments and venture into challenging fields and the nation’s strategic technology industries, we must thoroughly remove bottlenecks related to land access, capital and compliance costs,” Hùng pointed out.

He also highlighted that building a strong group of top private enterprises — often regarded as the 'leading cranes' of the economy — will be key to realising the science, technology and innovation-driven development model that the Government is striving to establish.

At the event, leaders from various agencies and the business community also proposed expanding mechanisms that would allow private enterprises to participate in strategic infrastructure and technology projects, thus promoting innovation and enhancing national competitiveness.

Nguyễn Thanh Nghị, Politburo member, secretary of the Party Central Committee and head of the Central Policy and Strategy Commission, delivered a keynote speech at the conference.

He emphasised that after nearly 40 years of Renewal, the Party’s awareness of the role of the private economy has become increasingly comprehensive and profound, with several breakthrough developments.

In particular, Resolution 68-NQ/TW dated May 4 last year identified the private economy as one of the most important driving forces of the national economy.

This was not only a significant development in theoretical thinking, but also demonstrated a strong political commitment to unlocking social resources, inspiring innovation, encouraging legitimate wealth creation, and promoting the dedication and capabilities of Vietnamese entrepreneurs, said Nghị.

Currently, the private economic sector accounts for about 97 per cent of all enterprises nationwide, contributes around 50 per cent of GDP, more than 30 per cent of State budget revenue, and creates jobs for over 80 per cent of the workforce.

However, the current growth model continues to depend heavily on capital, natural resources, low-cost labour and assembly-based manufacturing, while labour productivity, technological capacity and the economy’s resilience remain constrained.

In this context, Nghị stated that renewing the country’s development model was no longer an option but an inevitable requirement.

The new development model should be based on science and technology, innovation, digital transformation, the green economy and the knowledge economy, while also ensuring harmony between economic growth and cultural, social, environmental and national defence and security development, he said. 

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