Entrepreneurs: Key Drivers of Economic Development

Prime Minister Pham Minh Chinh attend the metting with Vietnamese entrepreneurs, October 4

Policies that make an impression

In recent years, the contributions of the business community have gained increasing recognition and the Party and State have implemented policies that support and promote the growth of Vietnamese entrepreneurs, aiming to enhance their participation in the global economy and establish a distinct Vietnamese brand identity on the international stage.

The adoption of Resolution 09-NQ/TW dated December 9, 2011, by the Politburo emphasized the recognition of the Vietnamese business community's role in the context of accelerated industrialization, modernization and international integration. For the first time, the 2013 Constitution formally acknowledged the status of entrepreneurs. The National Assembly and the Government have since enacted many legal frameworks and policies to foster a supportive business environment, enabling Vietnamese entrepreneurs to become a driving force in establishing an independent and self-reliant economy, and fulfilling the aspiration of becoming a prosperous and happy nation.

Entrepreneurs at the metting with Prime Minister Pham Minh Chinh in celebration of Vietnamese Entrepreneurs' Day

The 2013 Constitution affirmed the role of the Vietnamese business community, reflecting the Party and State's recognition and appreciation of their contributions. This acknowledgment has bolstered the confidence and resilience of entrepreneurs, empowering them to weather challenges and play an important role in the nation's development.

Notably, on October 10, 2023, the late General Secretary Nguyen Phu Trong signed Resolution 41-NQ/TW on behalf of the Politburo, focusing on building and developing a new generation of entrepreneurs, replacing the 12-year-old Resolution 09. According to Pham Tan Cong, President of the Vietnam Chamber of Commerce and Industry (VCCI), Resolution 41 serves as a foundation for domestic enterprises, supporting their growth as Vietnam aims to become a developed country.

Growing and developing strongly

Over the years, Vietnamese enterprises and entrepreneurs have consistently developed, making important contributions to economic growth. In 2019, Vietnam had an average of 7.9 active enterprises per 1,000 people, up from 5.4 in 2016. Between 2017 and 2020, the private sector's contribution to GDP rose steadily, increasing from 41.75% in 2017 to 42.68% in 2020.

Currently, the private sector in Vietnam comprises approximately 800,000 enterprises, alongside state-owned, foreign direct investment (FDI) companies, and cooperatives, forming a strong force driving economic development. This collective effort has propelled Vietnam’s GDP into the global Top 40 and positioned its international trade among the Top 20 worldwide. Vietnamese products are now proudly represented in global markets across all continents, while effectively meeting domestic demand. As a result, the quality of life has improved significantly, with GDP per capita reaching US$4,284.50 in 2023.

As the number and scale of enterprises across all sectors rapidly increase, the Vietnamese business community has played an important role in implementing the socio-economic development strategy, generating jobs and addressing social security issues. Currently, the business sector contributes over 40% of GDP and around 50% of state budget revenue. Thus, promoting economic development and enhancing Vietnam's global standing is both a mission and a responsibility of this community. Vietnam is home to many prominent enterprises, including Viettel, Geleximco, Vingroup, Vinamilk, FPT, Thaco and TH Group, all of which are expanding in scale, competitiveness and innovation. Several Vietnamese entrepreneurs have joined the ranks of global billionaires, while many companies have invested internationally, with approximately 1,716 projects totaling nearly US$22.12 billion in investments in many countries.

Entrepreneurs are the driving force behind Vietnam's significant transformation, playing an important role in lifting the nation from one of the poorest and war-torn countries to a middle-income status, while steadily integrating into the global economy.

Despite the achievements, the Vietnamese business community faces several challenges. Enterprise competitiveness remains average compared to global standards, and the goal of reaching Group 3 or Group 4 in ASEAN has yet to be realized. The promotion of business ethics and a strong entrepreneurial culture has not received sufficient attention, hindering its potential to foster sustainable development for the country.

Challenges forge success

During the online conference between the Government Standing Committee and entrepreneur representatives on Vietnam Entrepreneurs’ Day last year, Prime Minister Pham Minh Chinh said, "History shows that when faced with challenges, the Vietnamese business community is strengthened by resilience, perseverance, courage, flexibility, and a spirit of innovation and creativity."

"The Party, the State, and the people are always the foundation, believing that Vietnamese businesses and entrepreneurs will grow alongside the country, united in the mission of building and defending the Fatherland," he affirmed.

Dr. Mac Quoc Anh, Permanent Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises, said that to further develop the Vietnamese business community in response to new challenges, Vietnam must enhance the quality of its socialist-oriented market economy and create an equal, favorable business environment. This is the key solution for both immediate and long-term progress. Additionally, improving the training and development of the business community is important. This involves focusing on cultivating human resources, particularly high-quality talent who are well-trained, knowledgeable, creative and experienced in market dynamics, while adapting to the advancements of the Fourth Industrial Revolution.

In addition, according to Dr. Mac Quoc Anh, it is necessary to establish new standards of corporate culture that align with social values and the market economy. This includes entrepreneurs who possess intelligence, extensive professional knowledge, and a strong commitment to both personal and national advancement. They should embody national pride, competitiveness, and a spirit of integration, alongside upholding business ethics and modern management practices. Importantly, they must effectively balance personal, business, state and societal interests. It is necessary to enhance the role of organizations representing the business community and entrepreneurs. This includes establishing and connecting business associations to actively engage in political and social activities, voicing the concerns, opinions and recommendations of entrepreneurs, and advising the Party and State on socio-economic policies. These efforts will support initiatives aimed at fostering the development of businesses and entrepreneurs.

According to VCCI President Pham Tan Cong, the mission of VCCI is to support businesses in overcoming challenges while playing a core role in achieving the country's economic development goals. This aligns with the collective aspiration of the nation to transform Vietnam into a developed, high-income country by 2045.

Therefore, in addition to its traditional annual programs, VCCI focuses on comprehensively implementing Resolution 41-NQ/TW of the Politburo not only across its system but also throughout society. This involves collaboration with the Central Economic Commission and many central and local agencies to ensure successful execution of the Resolution. A key focus for VCCI is the promotion of business ethics and culture, which is a major strategy that will be pursued not only in the current term but also for many years and generations to come.