Ha Noi unlocks resources to propel private sector growth

In his opening remarks, Tran Sy Thanh, Chairman of the Ha Noi Municipal People's Committee, stated that the seminar aimed to implement the resolutions, plans, and directives of the Politburo and the government on developing the private sector.

In particular, Politburo’s Resolution No. 68-NQ/TW identifies the development of the private sector as “a key driving force of the national economy.” This direction reaffirms the position, role, mission, and high expectations placed on the private sector in the country’s new development phase.

In recent years, Ha Noi has made significant efforts to create a favourable environment for the growth of the private sector.

The city is currently home to over 155,000 operating businesses — the second highest number in the country — with private enterprises accounting for 97.2% of the total.

The growth rate and share of total social investment capital from the private sector have increased strongly in recent years, with an average annual rise of 7.3%, accounting for 57.8% of total investment. The sector contributes more than 45% of Ha Noi’s GRDP and generates nearly 80% of new jobs each year.

Despite these positive developments, many challenges remain. Private enterprises are numerous but largely small or micro-sized; they face limitations in technology and governance, have weak links and cooperation in business, and lack competitiveness and the capacity to integrate into regional and global value chains.

Dr. Nguyen Dinh Cung, former Director of the Central Institute for Economic Management, emphasised the need to radically improve the investment and business environment. This solution, he noted, does not require substantial financial resources but has a strong impact on attracting capital for business development, especially for the private sector, and is highly anticipated by the business community.

He stressed the importance of removing all barriers that hinder innovation and allowing individuals and businesses the freedom to operate in all areas not prohibited by law.

Dr. Cung also proposed that state intervention be reduced, along with the elimination of administrative barriers and the abolishment of the “ask–give” mechanism and the mindset of “banning what cannot be managed.” He called for clear decentralisation and delegation of authority among agencies and units, with clearly defined responsibilities for leaders in resolving administrative procedures.

Dau Anh Tuan, Deputy Secretary General and Head of Legal Affairs at the Viet Nam Chamber of Commerce and Industry (VCCI), recommended four key solutions for Ha Noi to foster private sector development. Among these, he suggested that the city publicly disclose information about unused land reserves to enable businesses to plan and form private enterprise clusters.

He also proposed that Ha Noi consider establishing a private sector development fund to support promising enterprises focused on high-tech development.

In his concluding remarks, Chairman Tran Sy Thanh emphasised that to create a breakthrough in private sector development, leaders of agencies and units must first change their mindset regarding the critical role of the private sector in both the national and capital city economies.

Accordingly, all relevant departments and agencies must focus on removing obstacles and creating the most favourable conditions for private enterprises to grow, particularly in areas such as land access and administrative procedures.

Chairman Thanh stressed that, in the context of the streamlining of the administrative apparatus and the implementation of a two-tier local government model nationwide, Ha Noi is accelerating the decentralisation process and the delegation of authority to local levels.

The city will continue to develop and implement mechanisms and policies that facilitate enterprise development, especially those in science, technology, and innovation.

With the support of central government agencies, experts, the business community, and Ha Moi’s citizens, the capital’s private sector is expected to thrive, making significant contributions to the city’s fast and sustainable growth.

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