Vietnam Deputy PM requests study of VAFIE proposals to build ‘leading’ economic groups

Vietnam’s Deputy Prime Minister Nguyen Van Thang has instructed ministries and state agencies to study recommendations from the Vietnam's Association of Foreign Invested Enterprises (VAFIE) on developing “leading” economic groups aimed at fostering large domestic corporations capable of competing regionally and globally.

Under Official Dispatch No. 4425/VPCP-KTTH dated May 14, 2026, issued by the Government Office regarding proposals for the development of “leading” economic groups, Thang assigned the ministries of finance, industry and trade, justice, science and technology, along with the State Bank of Vietnam, to review VAFIE’s report.

The ministries and agencies were also instructed to proactively implement appropriate and effective measures within their authority and in accordance with the law to support the development of economic groups with leading roles.

“For issues beyond their authority, ministries and agencies are required to report and propose them to competent authorities for consideration and decision in accordance with regulations,” the deputy prime minister noted.

The move comes as Vietnam targets higher economic growth in the coming years while seeking to build large-scale domestic enterprises capable of leading value chains and enhancing the country’s competitiveness.

Earlier, on April 22, VAFIE submitted a report to the National Assembly, the Government and the Party Central Committee’s Policy and Strategy Commission outlining solutions to promote the formation and development of strong economic groups.

The report was compiled based on discussions at a conference titled “40 years of reform: The leading role of economic groups,” organized by www.nhadautu.vn and www.theinvestor.vn, the two publications under VAFIE, on April 13.

The conference was attended by leaders from central government agencies, economists and executives from major banks and large corporations.

In its report to the government, VAFIE highlighted three key groups of solutions.

The first focused on institutional and legal reforms. Participants at the event said a strong economy requires strong economic groups and strong brands. To achieve that, Vietnam should accelerate the institutionalization of major policies outlined in the 14th National Party Congress Documents and strategic Politburo Resolutions, while improving the stability, transparency and predictability of the legal system.

Experts also proposed creating a sufficiently secure legal environment to encourage long-term investment, protect property rights and business freedom, and limit the criminalization of economic relations.

At the same time, policies should encourage capital flows into production, technology, research and development, and innovation rather than concentrating excessively in real estate and financial sectors.

Other notable proposals included establishing a national “order placement” mechanism for private enterprises in strategic sectors such as high-speed railways, renewable energy and semiconductor chips, while introducing regulations to separate family governance from corporate governance and protect minority shareholders at large conglomerates to improve transparency and sustainable development.

The second group of solutions focused on capital mobilization.

According to experts, Vietnam will require enormous capital resources to achieve double-digit growth targets in the coming years, with total funding needs estimated at around VND38,500 trillion ($1.46 trillion) over the next five years.

With bank credit already equivalent to about 146% of GDP, participants said the economy could no longer rely primarily on bank financing. Instead, Vietnam should strongly revive the corporate bond market, promote substantive initial public offerings, and develop medium- and long-term capital mobilization channels.

Experts also stressed the need to improve financing access for large projects through more professional financial structuring to attract international capital and non-bank financial institutions.

Notably, VAFIE proposed that the government consider establishing an “Infrastructure Investment Fund” and a “National Growth Fund” to provide long-term financing for strategic sectors while serving as seed capital to attract private and international investment.

The third group of solutions focused on strengthening linkages between large enterprises and small and medium-sized enterprises (SMEs).

Participants said Vietnam’s production linkages and supporting industries remain weak, while the capabilities of domestic firms are uneven, particularly in high-tech sectors.

They proposed promoting specialized industrial clusters to optimize costs, facilitate technology sharing, and enhance collective competitiveness. At the same time, Vietnam should introduce incentives encouraging foreign-invested enterprises and large economic groups to prioritize domestic supply chains.

The Government should also support SMEs in upgrading technical standards and management capabilities to meet the increasingly stringent requirements of leading corporations and global supply chains.