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| Prof. Dr. Dang Viet Anh from the University of Manchester, the UK__Photo: VNA |
The Politburo’s Resolution 68-NQ/TW on the development of the private economic sector is a watershed document that marks a fundamental shift in the perception and mindset towards private enterprises in Vietnam, underscoring their crucial role in driving national growth, according to Prof. Dr. Dang Viet Anh from the University of Manchester, the UK.
In a recent interview with the Vietnam News Agency, the scholar emphasized that the resolution sets out a bold vision with concrete targets, including at least one million new private enterprises by 2030, and another million by 2045, bringing the total to at least three million enterprises. The firms are expected to contribute some 60 percent to the GDP as compared to current 50 percent.
He praised the resolution's specific measures designed to create a level playing field and transparent environment for private enterprises, focusing on improving the institutional framework and reducing administrative procedures in business registration, mergers, acquisitions, and dissolution, while cutting costs and time burdens for enterprises.
The professor noted that Resolution 68 addresses major challenges of private firms such as limited access to capital, shortages in skilled labor, and insufficient investment in research and development (R&D). It specifies targeted support, especially for small and medium-sized enterprises, including better access to bank loans and investors' funding, enhanced training through partnerships between universities and businesses, and the adoption of advanced technologies to boost workforce quality.
The document underscores the critical need for continued R&D investment, particularly in innovation – a key factor for long-term business development, Anh said, noting that Vietnam should prioritize investment in such competitive sectors as electronics, electrical equipment, textiles, and agriculture, while exploring emerging fields like artificial intelligence, block chain, digital assets, electronic assets, and information technology. Anh identified regional and global market integration through partnerships with major international corporations like Samsung as an important solution for promoting the stature and export capacity of Vietnamese private enterprises.
Assessing Vietnam's current private sector capabilities, the professor observed that the country has an efficient system with one million enterprises and five million household businesses that play a vital role in the economy. This sector contributes nearly 50 percent of GDP, approximately 60 percent of investment, and around 30 percent of budget revenue while creating about 40 million jobs, representing roughly 80 percent of total employment in the economy. He also highlighted the sector’s contributions to narrowing inequalities across regions and between urban and rural areas, as well as advancing gender equality, given its strong impact on job creation for women.
He went on to underscore the need for clear laws and regulations to ensure transparency, better corporate governance, and improvements in both the quality and scale of Vietnam’s private economy. Placing Vietnam’s experience in a broader context, he pointed out that in many developing countries, private enterprises contribute 70–80 percent of GDP and generate up to 90 percent of jobs. They also account for as much as 90 percent of investment in innovation and R&D – drivers of competitiveness.
In developed and developing nations, global giants like Apple in the US, Samsung in the Republic of Korea, and BYD in China are examples of private-sector companies whose heavy investments in innovation and R&D have shaped national economies. Besides, private firms also have a critical role to play in sustainable development by conducting green transition and developing new and green technologies, according to the scholar.- (VNA/VLLF)
