Vietnam's major policies are reshaping economic development

Major policies are reshaping Vietnam's approach to economic development, which focuses on science, technology, and private enterprises, said a leader at the Vietnam Chamber of Commerce and Industry (VCCI).

"The government's Resolution 25 assigns tasks to localities to bolster national economic growth to at least 8% this year and double-digits in the coming years, putting significant pressure on them. This presents both a major challenge and an opportunity for the country to make stronger breakthroughs," said Dau Anh Tuan, deputy general secretary of the VCCI and head of the chamber's legal department

Tuan made the statement at the "Vietnam’s economic outlook for 2025 and key economic policies" in Ho Chi Minh City on Tuesday.

He noted that Vietnam’s current import-export turnover is nearly $800 billion and is expected to exceed $1,000 billion, highlighting the economy's heavy dependence on global trade.

"For an open economy like Vietnam’s, fluctuations in the global market can lead to significant disadvantages. Therefore, improving the capacity to adapt and manage risks is crucial."

"Last year, FDI inflows into Vietnam were very positive, but a single shift in the international market can significantly impact the domestic economy. Businesses need to be more proactive in managing risks and leveraging opportunities from free trade agreements," Tuan stressed.

He further explained that Vietnam is entering a new stage of development with a wave of strong reforms, ranging from economic policy and science and technology to corporate governance.

Key resolutions like the Politburo's Resolution 57 and the National Assembly's Resolution 193 related to mechanisms and policies to create breakthroughs in science, technology, innovation, and national digital transformation, as well as policies that support private enterprises will boost national competitiveness.

These major policies could serve as turning points, creating pressure but also offering substantial opportunities for businesses, especially with the private economy now positioned as a central driver of the nation’s economic growth.

According to Tuan, in the past, science and technology were only considered a tool to support economic development, but Resolution 57 has elevated it to a key driving force.

Vietnam aims that by 2030, science and technology will make an important contribution to GDP, and by 2045, the country will be among the top 30 countries in innovation in the world.

Among the highlights of Resolution 57 are shifting from public investment to a market mechanism, encouraging businesses to lead innovation, increasing private investment in R&D, and attracting capital from venture capital funds and public-private partnerships.

The resolution prioritizes high technology and core technology such as AI and biotechnology, helping Vietnam become self-reliant in important areas. Another highlight is developing an innovative startup ecosystem, creating favorable conditions in terms of institutions, finance, and markets.

"The shift from a heavily administrative science and technology management model to a market-oriented one is a breakthrough change, helping Vietnam accelerate the innovation process and enhance national competitiveness," Tuan noted.

Resolutions 57 and 193 have created an important step forward in accepting risks in scientific and technological research.

Previously, research projects were often bound by the principle of capital preservation, but now there is a mechanism to accept losses in the early stages, similar to the way venture capital funds operate.

Another important change is the commercialization of research products. Previously, state-funded research was only kept within the framework of state agencies, which was an open point, but perhaps not enough, he said.

Regarding the private economy, Tuan pointed out that despite various support policies, private enterprises in Vietnam still face many challenges, including small scale, limited connectivity, and weak competitiveness.

An upcoming resolution is expected to address these issues with a series of bold solutions. Specifically, there may be tailored strategies for large, medium, and small enterprises, as well as policies to encourage the transformation of 5 million business households into formal enterprises.

"We could boldly offer a three-year tax exemption for business households transitioning into enterprises," said Tuan.

However, according to Tuan, a separate resolution for the private economy may not be necessary, as there are already emerging trends that reflect growing trust and a re-evaluation of the role of private enterprises.

A number of private companies are now participating in major projects, such as high-speed railways and large-scale infrastructure developments. This reform is creating a more transparent, stable, and timely legal environment for businesses, helping to reduce policy risks in their operations.

"Still, businesses must stay vigilant and keep abreast of legal changes to ensure they remain compliant and adaptable."