A new breakthrough to promote private economy

Part 1: The most important driving force of economy

The Politburo’s Resolution No. 68-NQ/TW dated on May 4, 2025 on the development of the private economy (briefly called the Resolution No. 68-NQ/TW) is a very recent directive, demonstrating the strong political will of the Party to further promote the role of the private sector as a new strategic driver for national development. In this resolution, the private economy is identified as "the most important driving force" and is considered as a fresh breath of vitality for the country’s private economic sector.

Breakthrough in mindset

On May 18 in Hanoi, the Politburo and the Secretariat organized a national conference to thoroughly grasp and implement the Resolution No. 68-NQ/TW. At the conference, Prime Minister Pham Minh Chinh emphasized that the private economy has continuously grown and affirmed its role as a key driver of the economy. It serves as an effective channel to mobilize social resources for development investment, significantly contributing to economic growth, increasing State budget revenue, creating jobs and incomes, improving people's lives, ensuring social security, promoting international integration and playing an important part in the cause of nation-building, defense and development. To realize the country’s development goals set by the 13th National Party Congress and meet the demands of development in the new era, it is essential and urgent to renew thinking, unify awareness and actions and adopt comprehensive, breakthrough solutions to further strengthen the role of the private economy. This will reinforce confidence and create new momentum for national economic growth.

Under the goal of the Resolution No. 68-NQ/TW, by 2030, the private sector will become the most important driving force of the national economy; a pioneering force in the development of science and technology, innovation and digital transformation, contributing to the successful implementation of the objectives set out in the Politburo’s Resolution No. 57-NQ/TW dated December 22, 2024, on breakthroughs in national science and technology development, innovation and digital transformation as well as other Party guidelines and policies.

Dr. Tran Van Khai, Deputy Chairman of the National Assembly's Committee for Science, Technology and Environment, noted that the Resolution No. 68-NQ/TW represents a breakthrough in thinking. It marks a shift from considering the private economy as just a key component of the economy (as stated at the 9th Party Congress in 2001) to now identifying it as “an important driving force”. After 40 years of implementing the Doi Moi (Renewal) process, the private sector has made remarkable progress both in quantity and quality, becoming one of the vital drivers of industrialization, modernization, socio-economic development and international integration. Currently, this sector contributes around 50% of GDP and over 30% of State budget revenue (as noted in the Resolution No. 10-NQ/TW in 2017) and is now recognized as “the most important driving force” of the national economy, a strategic locomotive for growth. The private economic sector is regarded as equality and holds a position on par with the State-owned economy and the collective economy, together playing a core role in building an independent, self-reliant economy with deep integration, for the goals of building a Viet Nam of “rich people, strong country, democracy, justice, and civilization”.

Injecting fresh vitality

Economic experts evaluate that the business community today still faces many challenges such as an incomplete market economy institution; competitive pressure from foreign enterprises on increase; limitations in financial capacity, technology and human resources, especially small and medium-sized enterprises (SMEs) that are encountering numerous difficulties and challenges, particularly in the current fierce competitive environment.

According to Nguyen Thanh Tin, Director of Vu Mon Engineering and Technology Co., Ltd. and Chairman of Thu Dau Mot city’s Young Entrepreneurs Association, businesses in Binh Duong are currently dealing with multiple difficulties, including rising input costs amid weak market demand that narrows profit margins; limited access to credit, especially for SMEs, due to strict loan conditions; a shortage of high-quality human resources, particularly in digital transformation and technology and challenges in market expansion, due to economic volatility and shifts in domestic and international policies. Despite these obstacles, businesses are making continuous efforts to adapt, restructure and strengthen connectivity to overcome challenges and aim for recovery and sustainable growth.

Mr. Tin emphasized that the Politburo’s issuance of Resolution 68-NQ/TW is a strategic turning point, clearly affirming the private economy’s role as a key driver of the national economy. For businesses, especially SMEs, the resolution opens up many development opportunities. Specifically, in terms of improving the business environment, the resolution outlines solutions to remove institutional barriers and simplify administrative procedures, making it easier for enterprises to access land, capital and markets. Regarding financial support, the Government encourages diversification of funding sources for the private economy. In terms of human resource development, the resolution highlights the need to improve workforce quality, promote training and skill development for laborers in the private sector. It also encourages innovation and urges businesses to invest in research, development and apply new technologies, contributing to enhancing productivity and competitiveness.

Dr. Tran Van Khai highlighted that a crucial point in the Resolution No. 68-NQ/TW is the Party’s recognition and respect for market laws and the removal of longstanding prejudices and barriers towards the private economy. Accordingly, the State plays a facilitative and supportive role rather than deeply intervening administratively, allowing the market and businesses to make decisions independently within the legal framework. It is this new vitality of the Resolution No. 68 NQ/TW that has freed the private economy and enterprises as "a drought meets a shower of rain".

Reported by Phuong Le-Translated by Kim Tin