General Secretary Party Leader To Lam, representing the Politburo, has endorsed a resolution focusing on the growth of the private economic sector, positioning it as the top priority for driving Vietnam’s economy in the coming years.
As stated in the resolution, following almost forty years of economic reforms, the sector has consistently expanded in size and quality, emerging as one of the primary catalysts for the socialist-oriented market economy.
It currently encompasses over 940,000 registered companies along with an impressive five million family-run enterprises. These entities contribute roughly half of the country’s gross domestic product and account for more than thirty percent of all government revenues from taxes. Additionally, they provide employment opportunities to around eighty-two percent of the overall labor force in the nation.
Several privately-owned companies have risen to become key competitors, building robust brand identities and broadening their presence in both local and international markets.
Nevertheless, the resolution acknowledges that the private sector continues to encounter various obstacles and falls short of meeting expectations as the primary driver of the nation’s economy. The majority of businesses are still categorized as micro, small, or medium-sized, lacking robust financial resources and managerial expertise.
They typically have limited technological abilities, lower innovation rates, poor labor efficiency, and reduced competitive edge. There is usually an absence of strategic planning, and connections with government-controlled and overseas-funded companies stay tenuous.
ThePolitburo blames these issues on multiple causes, with the main factor being a partial grasp of how theprivate sector contributes tothe economy. Other contributing elements include weakinstitutional andlegal structures as well as limited safeguards forproperty rights andbusiness freedoms.Private companies findit difficult to obtainresources and take advantageof incentives, allwhile facing elevatedoperational expenses.
The new resolution
establishes lofty objectives for the industry by 2030, with ambitions to make it the primary catalyst for the nation’s economic growth, as well as a key player in scientific advancement, technological progress, innovative practices, and digital change.
The objectives encompass achieving 2 million actively engaged businesses, maintaining at least 20 operational companies for every 1,000 individuals, and ensuring that a minimum of 20 major corporations are incorporated within international supply networks.
The resolution anticipates that the private sector will expand annually by 10-12%, contributing 55-58% to the GDP, providing 35-40% of state budget revenues, and offering employment to 84-85% of the workforce.
The company’s prowess in innovation and digital transformation aims to place them within the top three in ASEAN and the top five across Asia.
By 2045, the proposal anticipates rapid, resilient, and sustainable growth of the private sector. It foresees this sector playing an active part in shaping global production and supply networks, with significant competitive strength evident regionally as well as internationally.
By then, the aim is to include at least 3 million businesses, contributing more than 60% to the GDP.
The resolution details particular duties, resolutions, and execution procedures to achieve these goals.
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