Private economic sector embraces new opportunities
Part 1: Confirming the role
On May 31 in Hanoi, Prime Minister Pham Minh Chinh presided over a discussion with business leaders to facilitate the effective implementation of Resolution No. 68-NQ/TW from the Politburo regarding the development of the private sector. Mr. Bui Minh Tri, Vice Chairman of the Provincial People's Committee, participated in the online conference from Binh Duong.
Ignite the aspiration to achieve wealth through legitimate means
Addressing the seminar, Prime Minister Pham Minh Chinh underscored that the private sector has consistently evolved, solidifying its role as a crucial engine of the economy and an effective means of mobilizing social resources for investment and development. The Prime Minister remarked that while the nation triumphed in the resistance war through the strategy of people's warfare, in the current era of peace, fostering a robust nation necessitates the promotion of the ethos of "shared prosperity," viewing economic development as a collective mobilization and a broad-based movement.
To institutionalize the policies outlined in Resolution No. 68-NQ/TW of the Politburo, the Government swiftly presented Resolution No. 198/2025/NQ-QH15 to the National Assembly for enactment, which addresses several special mechanisms and policies for the development of the private sector. Following this, the Government released Resolution No. 138/NQ-CP and Resolution No. 139/NQ-CP, detailing the action plan for executing the resolutions of both the Politburo and the National Assembly.
The Prime Minister continued to oversee the organization of a dialogue with enterprises and associations, aiming to facilitate effective implementation in the spirit of "thinking deeply and doing big." He emphasized that the resolutions of the Politburo, the National Assembly, and the Government have been remarkably synchronized and comprehensive. The primary objective is to ensure effective implementation that maximizes the potential of nearly 1 million enterprises and 5 million business households. With each individual and household contributing, society as a whole will harness significant resources to "transform the state and turn the situation around," propelling the nation toward rapid and sustainable development.
Resolution No. 68-NQ/TW of the Politburo, issued on May 4, 2025, exemplifies the Party's strong political commitment to enhancing the role of the private sector as a new strategic catalyst for national development. The Resolution encompasses six significant components: streamlining administrative procedures to reduce time and costs; refining the legal framework governing virtual currency and artificial intelligence; establishing preferential tax policies for enterprises; abolishing the lump-sum tax for business households by 2026 at the latest; decreasing land rental fees in industrial parks for businesses; and supporting credit institutions in lowering interest rates for enterprises. |
To operationalize the resolutions and foster private economic development, the Vietnam Association of Small and Medium Enterprises proposed a program during the seminar aimed at reducing and streamlining administrative procedures associated with production and business activities for the years 2025 and 2026. This initiative should establish specific objectives to eliminate unnecessary procedures, ensuring independence from administrative constraints. All levels and sectors must prioritize support for small and medium enterprises in accessing essential resources, including land and production facilities; preferential financing and credit; the application of science and technology, innovation, and digital transformation; as well as the training and development of high-quality human resources.
During the discussion, Ms. Mai Kieu Lien, General Director of Vinamilk, stated that the Government's resolutions and policies are unequivocal. The challenge lies in their implementation. Furthermore, she expressed hope that, should any issues or difficulties arise during this process, the ministries, branches, and levels of government will address and resolve them promptly, allowing a reasonable timeframe for businesses to overcome these challenges.
According to Associate Professor Dr. Tran Dinh Thien, a member of the National Monetary and Financial Policy Advisory Council and former Director of the Vietnam Economic Institute, while the State has established numerous favorable conditions, it is important to recognize that the Vietnamese private enterprise sector is currently encountering challenges, both institutional and unprecedented. Attention must be directed towards addressing issues in the land market, financial market, and real estate market to facilitate convenient and effective access to these resources for Vietnamese private enterprises.
Associate Professor Dr. Tran Dinh Thien emphasized the necessity for all levels and sectors to prioritize the business sector associated with innovation and high technology, as this represents the critical competitive frontier for the nation on the global stage. A failure to establish a conducive institutional environment for the innovation sector may result in missed opportunities.
Eliminating bottlenecks for the private sector to achieve progress
The seminar attracted over 1,000 delegates, including provincial leaders, representatives from centrally-run cities, enterprises, business associations, and cooperatives, who gathered to discuss contributions and recommendations regarding policies, tasks, and solutions for the advancement of the private economy in the near future. This gathering underscored the significance and role of the private sector, which plays a crucial part in the rapid and sustainable development of both the economy and society. |
In a conversation with us on the sidelines of the discussion, Ms. Trinh Thi Hong Chau, President of the Binh Duong Electromechanical Association, stated that to address the challenges of accessing capital, particularly low-interest loans, the association has proposed more advantageous mechanisms for businesses to secure funding. Access to preferential capital from banks would facilitate investments in technology, thereby narrowing the technological gap with the current foreign direct investment sector.
“We anticipate that the Government will persist in guiding banks to support businesses. Additionally, we hope that the Government will focus on directing the implementation of solutions to ensure that the policy of guaranteeing loans for businesses becomes more robust and fosters the development of other segments within the financial market. Only then will credit availability for small and medium-sized enterprises expand, and preferential credit rotation will benefit a greater number of businesses,” stated Ms. Trinh Thi Hong Chau.
Ms. Phan Le Diem Trang, Vice President of the Binh Duong Textile and Garment Association, noted that despite the existence of the Law on Enterprises and support mechanisms for small and medium enterprises, along with five decrees, their effectiveness remains limited. The Government is taking decisive action. The business community anticipates that with the streamlining of administrative structures and the amendment of laws, as well as the introduction of new decrees aligned with the policies of the Party and State, procedural timelines will be significantly reduced. Furthermore, the initiatives aimed at guiding and supporting businesses will prove effective, particularly the decriminalization of administrative violations, which will create a more favorable environment for business development.
To be continued
Reported by Tieu My – Anh Tuan – Translated by Vi Bao
