Encouragement by Politburo in Resolution 68 for lawful accumulation of wealth by the private sector, backed by national contributions.
New and Improved Draft:
In the heart of Hanoi, Prime Minister Phạm Minh Chính recently highlighted the significant role of the private sector in driving Vietnam's economy at a national conference. The occasion was perfect to discuss the core contents of the Politburo's Resolution No.68, aimed at fostering the growth of the private economy.
Over the past 40 years since the initiation of the Đổi mới (Renewal) process, the private sector has been a significant player, chucking the number of newly established enterprises from around 5,000 in 1990 to 200,000 in 2005, a whopping 40-fold increase over 15 years. Now, nearly one million enterprises are running the show within the economy.
The private sector boasts a consistent high growth rate and has become the primary contributor to the nation's GDP, accounting for approximately half of it. Since 2016, the growth rate has ranged between 6-8% yearly, outperforming the average national growth rate.
Despite these positive strides, the PM acknowledged that the private sector encounters various hurdles. The potential and internal strengths are yet to be fully harnessed, and its overall contribution to the national economy remains lackluster.
Statistics show that nearly 98% of private enterprises are small and medium-sized, with limited competitiveness, operational efficiency, and management capacity. Access to essential resources, such as finance, land, and human talent, remains elusive. Furthermore, connectivity among private enterprises and between private, state-owned, and foreign-invested enterprises is still in its infancy.
PM Chính explained that these limitations offer an opportunity for restructuring the economy, productions chains, markets, and products. The COVID-19 pandemic illustrated such opportunities when the need for restructuring markets, products, and productions became inevitable. Currently, the nation is working tirelessly to diversify markets, products, and supply chains, an initiative primarily driven by entrepreneurs, while the State plays an enabling role.
Resolution No. 68 presents five defining viewpoints that represent a significant leap in the development of the private economy. Of great importance is the recognition of the private sector as one of the most critical driving forces of the national economy. Rapid, sustainable, efficient, and high-quality development of the private economy is a pressing concern as well as a long-term strategic task. The resolution calls for the elimination of outdated perceptions, prejudices, and attitudes towards the private economy, viewing entrepreneurs as modern-day economic warriors.
Creating a transparent and open business environment to ensure international competitiveness, foster entrepreneurship, and promote lawful wealth creation is another crucial aspect of the resolution. Enhancing the role of the Party and the State, with businesses at the center, and encouraging the development of a strong class of entrepreneurs are critical areas of focus. The PM emphasized the importance of this issue in strengthening economic development and raising Vietnam's position globally.
"We are preparing a nationwide campaign titled 'All people emulating efforts to create wealth, build and safeguard the Socialist Republic of Vietnam'," the Prime Minister said. "Once this Resolution is in effect, we will officially launch the national emulation movement for wealth creation."
Resolution No. 68 sets targets for 2030 and a vision to 2045, aiming for rapid, strong, and sustainable growth of the private sector, promoting its participation in global production and supply chains, enhancing regional and international competitiveness, and reaching a goal of having at least three million enterprises operating in the economy by 2045, contributing over 60% of GDP.
The resolution outlines eight tasks and solution groups aimed at transforming mindsets, building unity in awareness and action, inspiring public trust, national aspirations, and generating momentum and energy for private sector development. These focuses include reforming and improving institutional quality, policies, and the enforcement of ownership rights, freedom of business, and fair competition. Strengthening legal distinctions between criminal, administrative, and civil responsibilities to boost business and investor confidence is also a priority.
Prime Minister Phạm Minh Chính speaks at the conference. VNA/VNS Photo
During the conference, representatives from the business community expressed delight at the issuance of Resolution No.68, paving the way for enterprises to come up with groundbreaking strategies and solutions moving forward. The resolution is expected to enable enterprises to adapt and thrive amidst the rapidly changing economic landscape.
- Prime Minister Phạm Minh Chính emphasized the significant role of AI in driving Vietnam's economic development, acknowledging its potential for enhancing the efficiency of private enterprises.
- The government recognizes the importance of education in equipping the workforce with the necessary skills to leverage AI for business growth and innovation.
- In the face of the pandemic, the government sees the need to invest in technology, specifically in healthcare AI, to both combat the virus and bolster the resilience of the economy.
- The PM acknowledged that the private sector encounters hurdles in accessing essential resources such as finance, land, and human talent, and called for improvements in financial regulations and energy policies to support sustainable business growth.
- The PM's stance on the private sector aligns with general-news headlines, as many countries grapple with the tension between supporting private enterprises and maintaining national interests in times of war and economic instability.
- Science and technology have become integral to Vietnam's endeavors to diversify markets and supply chains, allowing the country to seize opportunities arising from the global interconnectedness of industries.
- PM Chính emphasized the role of law and politics in ensuring a transparent and open business environment, calling for reforms to strengthen the rule of law and protect property rights for businesses and investors.
- In the context of the ongoing energy crisis and the global trend towards environmental sustainability, the PM highlighted the importance of prioritizing energy conservation and clean energy solutions to secure a stable and eco-friendly future for Vietnam's economy.
