Clear strategy needed for private sector to thrive: Party Chief

To develop the private sector, it is essential to have a clear strategy based on the level of development and growth potential of the economy.

General Secretary of the Communist Party of Vietnam To Lam made the remarks at a meeting on private sector development on March 7.

He said the private sector has made remarkable progress and contributed significantly to the economy and the country's renewal and development process. However, while the sector is large in number, it remains limited in size, financial capacity, and competitiveness. It also lacks leading companies to drive key industries, and its internal linkages with other sectors of the economy remain weak.

Apart from private enterprises, Lam noted that more than five million individual business households represent a significant force, but they "do not want to grow and refuse to grow" due to regulatory constraints and concerns about legal procedures. In addition, most small and medium-sized enterprises (SMEs) lack the proactivity, creativity, and ambition to expand.

The Party Chief emphasized the need to change the mindset and awareness of the business community to lead to changes in behavior and actions, with specific policies tailored to this vital economic sector. The development of the private sector requires a clear strategy that is aligned with the country's economic level and growth potential.

"This strategy must take into account the geopolitical and economic changes taking place around the world to adapt, withstand challenges, and compete effectively," said Lam.

Vietnam is targeting an economic growth rate of 8% or more this year, laying the groundwork for double-digit growth in the coming years. The private sector, which employs 85% of the workforce, contributes over 50% of the GDP and about 30% of the state budget. It is considered a key driver of economic growth, according to the Central Policy and Strategy Committee.

To ensure the development of the private sector and its contribution to national goals, Tran Luu Quang, Head of the Central Committee for Policy and Strategy, said the government must remove obstacles and implement breakthrough, revolutionary solutions to create a sustainable foundation for the sector's growth.

Specifically, comprehensive solutions are needed to create a more conducive business environment, improve access to resources, foster technological innovation, and enhance human resource development. The authorities must also urgently address long-standing bottlenecks that hamper business.

Party Chief To Lam stressed that the key to a breakthrough lies in addressing institutional barriers, improving the investment climate, and removing obstacles to business development. "It is essential to consistently uphold the principle that citizens and businesses can do anything that is not expressly prohibited by law," he said.

He urged the implementation of national private sector development programs which "must help small and medium-sized enterprises grow rapidly into large corporations." 

Lam said that improving both infrastructure and workforce quality is crucial to support overall development. This includes both hard infrastructure - such as transportation, urban areas, and industrial zones - and soft infrastructure, including information systems, data, and analytics, to create an enabling environment for all businesses. "Workforce training policies must also be well-defined, especially in developing high-quality human resources and attracting talent in key sectors."

The government must continue reforms, strengthen its leadership, and effectively address persistent shortcomings in implementing the Party's directives.

He called on the Central Policy and Strategy Committee to work with the government and relevant agencies to draft a resolution on private sector development for submission to the Politburo.