According to Associate Professor Tran Dinh Thien, the driving force of private sector development will determine whether Vietnam can catch up with the world, rather than foreign investment.

Private sector as a growth engine

Vietnam currently has over 940,000 private enterprises and about 5 million household businesses, employing tens of millions of workers. This sector contributes around 50% of GDP, 30% of the national budget, and more than 80% of jobs.

Speaking at the seminar “Resolution 68-NQ/TW: Driving force for Vietnam’s private sector development” on August 15, Associate Professor Nguyen Thanh Loi, Editor-in-Chief of Economic & Urban Newspaper, stressed that if given more opportunities and a fair, favorable business environment, the private sector could contribute even more to the nation’s development.

National Assembly deputy Phan Duc Hieu, a member of the Economic and Financial Committee, said the introduction of Resolution 68 represents a fundamental shift as institutional bottlenecks have been resolved in three areas: reducing bureaucracy, enhancing protection, and minimizing risks to unlock resources.

The essence of Resolution 68 goes beyond removing barriers to business. It signals a deeper change in legislative thinking and law enforcement. However, Hieu emphasized that the decisive factor lies in implementation.

He noted: “The biggest challenge now is the vast amount of work required to institutionalize. For example, the plan to cut 30% of business conditions is still under review and will continue in the near future. In some cases, reforms can be carried out without even amending the law.”

Meanwhile, Associate Professor Tran Dinh Thien said that if the Central Committee assigns the private sector the mission of being the most important growth driver, then the state must find every way to empower it.

“The driving force of private sector development is the key to whether Vietnam can catch up with the world, not foreign investment,” he stressed.

For this reason, government authorities must work harder to help the private sector fulfill its role.

Hanoi offers unique advantages for private business growth

Professor Hoang Van Cuong, Vice Chairman of the National Professor Council and a National Assembly deputy, said Hanoi has many advantages for private businesses, including geopolitical and diplomatic strengths. The city is also the growth hub of northern Vietnam.

Hanoi’s market ranks second nationwide, with a population of over 10 million, most of whom are high-income earners. The city also has abundant human resources and strong capacity in science and technology - major potential to boost private sector development.

However, Cuong emphasized that Hanoi’s private sector must focus on quality rather than quantity, pioneering in technology application and transfer.

Resolution 68 creates new opportunities for the private sector to not only grow independently but also take part in major state projects. Hanoi currently has many high-potential projects for businesses to tap into.

Truong Viet Dung, Vice Chairman of Hanoi People’s Committee, said the city has rolled out multiple business support measures, including reducing administrative procedures, enhancing planning transparency, and ensuring fair investment opportunities in socio-economic, infrastructure, and energy projects.

The city is also pushing forward three strategic breakthroughs: more open institutions, better infrastructure, and a workforce that meets new development demands, while strengthening dialogue and listening to businesses.

Additionally, Hanoi has issued more than 80 support policies for small and medium-sized enterprises (SMEs) for 2026-2030, focusing on governance, production infrastructure, startup ecosystems, tax incentives, and financial assistance in key science and technology sectors.

Hanoi aims to have around 230,000 active businesses by the end of 2025, reaching 27 enterprises per 1,000 residents. The private sector is expected to contribute 50-55% of GRDP. With the Prime Minister’s growth targets, Hanoi’s GRDP in 2025 is estimated at 63.5 billion USD (up 8.5%), with the private sector contributing 31.8-35 billion USD. It also aims to account for 45-50% of total budget revenue and create jobs for 55-60% of the workforce.

Nguyen Le