Private sector the most important driver of growth: Vietnam Party chief

As private businesses are the most important driver of economic growth, there needs to be mindset changes to develop strategies for this vital sector, Vietnamese Party chief To Lam said on Friday.

Chairing a working session with the Party Central Committee's Commission for Policies and Strategies, he said despite operating in challenging conditions, Vietnam's private economy has made significant progress and growth, contributing greatly to the economy and the country's reform.

But the Party leader noted that the private sector still faces many bottlenecks, with several goals yet to be achieved. He highlighted six key solutions.

First, it is necessary to affirm the private economy as the most important driver of growth. He stressed the need to change the mindset and awareness to alter how the private sector is treated and to implement specific policies for this important sector.

Second, there must be a clear strategy for the private sector's development, aligned with the current level of the economy, the country's geopolitical and geoeconomic spaces, and global changes. This strategy should ensure that the private sector can develop with strong adaptability, resilience, and competitiveness.

Third, focus must be placed on improving infrastructure - both physical (such as transportation, urban areas, and industrial zones) and digital (such as information, data, connectivity, and smart technology) - to facilitate the development of businesses.

"Specific policies are needed to train the workforce, especially to develop high-quality human resources and talent, particularly in key fields," Lam noted.

Fourth, the key to breakthroughs is removing institutional bottlenecks by improving the business climate, eliminating barriers to business development, and enforcing the principle of allowing people and businesses to do what the law does not prohibit.

Fifth, there must be an emphasis on building and effectively implementing national programs to promote private sector development, helping small and medium-sized enterprises grow quickly into large ones.

Sixth, there is a need to continue reforming and enhancing the leadership role of the Party and the management role of the State. It is especially important to address inefficiencies in the execution of the Party's resolutions, conclusions, and directives. The Party's resolutions must be promptly and effectively brought into life.

The Party General Secretary also requested the Commission for Policies and Strategies to actively coordinate with the Government's Party Committee and relevant agencies to draft a resolution on the private economy for the Politburo’s approval.

A commission report pointed out that the private economy has made significant progress in recent years, contributing over 50% of national GDP, around 30% of state budget revenue, attracting about 85% of the labor force, and serving as the main driver of economic growth.

However, the sector still faces many barriers and challenges, which hinder its ability to fully realize its potential and contribute to the country's economic development.

Tran Luu Quang, head of the commission, remarked: "This is a crucial moment; there can be no further delay in removing these barriers. We must unleash the power of this vital economic sector, which will play a decisive role in achieving the country's strategic development goals by 2030 and 2045, as set forth by the Party and the people."

“Exceptional, revolutionary solutions are needed to both effectively address current issues and lay the foundation for the sustainable, strong, and long-term development of Vietnam’s private economy,” he stressed.

The solutions must be developed and implemented in a synchronized and comprehensive manner to create a favorable and transparent environment, enhance access to resources, promote technological innovation, develop human resources, and improve the capacity of businesses and entrepreneurs.