Private sector is thriving in the Vietnamese market economy

Many private economic groups have come into existence and developed, thus affirming their significant role in the development of the country

Ten years ago, on October 29, 2009, the Government Office issued a notice that the Prime Minister agreed in principle on the establishment of private economic corporations at the proposal of the Viet Nam Young Entrepreneurs Association.

Resolution No. 10-NQ/TW also paved the way for the introduction of new mechanisms and policies which are more appropriate and innovative to develop the private economy into a dynamic creative economic sector with high competitiveness and spillover effects to other economic sectors, thereby to the entire economy.

A decade has passed, and Viet Nam’s economy has come a long journey. The private sector has risen spectacularly, becoming an important driving force of the economy with a 40% share of the gross domestic product (GDP). In addition, many private economic groups have come into existence and developed, thus affirming their significant role in the development of the country.

The formation of private economic groups in Viet Nam is quite diverse. Some started their business through trading activities, the opening of wholesale and retail stores in the country, and imports-exports. Meanwhile, some others got down to new areas, such as automobiles.

Paving the way for locomotives to develop

To develop the private sector into an important driving force of the economy, the 12th National Party Congress affirmed the importance of perfecting mechanisms and policies, and encouraging and creating favorable conditions for the development of the private sector in most industries and sectors, with a focus on completing policies to support the development of small and medium-sized enterprises and start-ups, while encouraging the formation of multi-owned private economic groups and the private economic groups contributing capital to state-owned economic corporations.

The resolution of the fifth plenum of the 12^th Party Central Committee has set the goal of developing the private economic sector, specifically including attaining a higher growth rate than the average growth rate of the entire economy, and increasing its share of GDP by about 50% in 2020, 55% in 2025 and 60-65% in 2030.

The private economic sector in Viet Nam has recorded new developments in both quantity and quality, making increased contributions to the rapid and sustainable development of the economy and the society. The achieved results have increasingly affirmed the resolution’s correctness and conformity with the general development trend.

By Vien Nhu