This morning (August 15, 2025), National Economics University (NEU) organized a policy dialogue seminar on the theme “Breakthrough Solutions to Remove Bottlenecks to Private Sector Development.”

An overview of the seminar

Attending the seminar on behalf of ministries, departments and central agencies were Assoc. Prof. Dr. Nguyen Hong Son, Deputy Head of the Central Commission for Policy and Strategy; Dr. Bui Truong Giang, Vice Chair and Secretary General of the Central Theoretical Council; Dr. Hoang Xuan Hoa, Deputy Secretary of the Party Committee of the Office of the National Assembly; Nguyen Phi Lan, Director of the Department of Forecasting, Statistics and Monetary and Financial Stability, State Bank of Vietnam; Dr. Tran Kim Anh, Deputy Director of the Department of General Economic Affairs, Central Commission for Policy and Strategy; Le Trung Hieu, Deputy Director General of the National Statistics Office, Ministry of Finance; and Bui Thu Thuy, Deputy Director General of the Agency for Private Enterprise and Collective Economy Development, Ministry of Finance.

Representing associations and businesses were Assoc. Prof. Dr. Phan Dang Tuat, Chair of the Vietnam Association for Supporting Industries; Nguyen Dinh Thang, Vice Chair of the Vietnam Association for Information Processing and Chair of the Board of Directors of Hong Co Group; Hoang Cong Doan, Vice Chair of the Vietnam Young Entrepreneurs Association; and Dr. Nguyen Anh Tuan of the Vietnam Tourism Association, Director of the Institute of Tourism Economics.

Key speakers and economic experts participating in the roundtable discussion included Prof. Dr. Ngo Thang Loi, NEU; Dr. Tran Van The, Chair of the Board of Directors of InDel Investment and Development Company; Dr. Le Dang Doanh, former Director of the Central Institute for Economic Management; Assoc. Prof. Dr. Le Xuan Ba, former Director of the Central Institute for Economic Management; Dr. Vo Tri Thanh, former Deputy Director of the Central Institute for Economic Management; Pham Chi Lan, economic expert; Assoc. Prof. Dr. Bui Van Huyen, Director of the Institute of Economics, Society and Environment, Ho Chi Minh National Academy of Politics; and Dr. Nguyen Thi Luyen, Institute of Policy and Strategy Studies. Also attending were nearly 200 delegates, including scientists; representatives of central agencies, universities and research institutes in Vietnam and abroad, including research institutes and universities specializing in economics and business administration; economic experts; and business representatives.

Representing NEU were Assoc. Prof. Dr. Bui Huy Nhuong, President; Assoc. Prof. Dr. Bui Duc Tho, Secretary of the Party Committee and Chair of the University Council; Prof. Dr. Nguyen Thanh Hieu, Vice President; Prof. Dr. Pham Hong Chuong, former President; Prof. Dr. Tran Tho Dat, Chair of the Science and Training Council; Assoc. Prof. Dr. Nguyen Thanh Ha, Chair of the Advisory Council; and Prof. Dr. To Trung Thanh, Head of the Department of Research Management. They were joined by representatives of the leadership of colleges, departments, faculties, schools, institutes and centers; leaders of units and divisions; and a large number of faculty, staff and students from across the University.

Prof. Dr. Nguyen Thanh Hieu, Vice President of NEU, speaks at the seminar

Speaking at the seminar, Prof. Dr. Nguyen Thanh Hieu, Vice President of NEU, emphasized that after nearly 40 years of Doi Moi (Renewal), Vietnam’s private sector has made substantial progress in both quantity and quality, gradually affirming its role in the socialist-oriented market economy.

By 2024, the private sector accounted for 53.4% of total social investment and 82.07% of total employment in the economy, contributing 38.6% of total pre-tax profits and 51% of total income generated for workers in the enterprise sector.

The private sector contributed 43% of total GDP and accounted for 57% of GDP growth in 2024, the largest contribution among all economic sectors. Over the 2011–2024 period, the sector recorded average annual growth of 6.3%, higher than the economy-wide average of 5.48% per year.

“These figures firmly affirm the central role and enormous potential of the private sector, while laying the foundation for elevating its position to become a primary driver in achieving Vietnam’s goal of rapid, sustainable growth,” Prof. Dr. Nguyen Thanh Hieu said.

The Politburo’s Resolution No. 68-NQ/TW on private sector development sets specific targets for 2030 and a vision for 2045. However, the private sector still faces numerous shortcomings relative to expectations that it will become a pillar of national economic development. It currently ranks lowest among all economic sectors in business performance, scientific and technological capabilities, labor productivity and worker income. The sector is also showing signs of “running out of steam” in its development.

Prof. Dr. Ngo Thang Loi, NEU, presents his paper: Current conditions and bottlenecks in private sector development and recommendations for removing them

Identifying bottlenecks arising from both the policy environment and internal factors, Prof. Dr. Ngo Thang Loi, Senior Lecturer at NEU, observed that, institutionally, the policy system still lacks inclusiveness in many respects. Private enterprises are not guaranteed equal access to business opportunities, land resources and capital; face difficulties in raising additional capital during production and business operations; and encounter disparities in tax policies compared with state-owned or foreign-invested enterprises.

Prof. Dr. Ngo Thang Loi proposed two major groups of solutions. First, improve the inclusive development model to ensure equality among different types of enterprises in accessing opportunities and sharing the results of business operations. Policies should provide tailored support for each group, from large enterprises and small and medium-sized enterprises to household businesses, to encourage development and expansion.

Second, to promote linkages within the sector and internationally, the business association model needs to be improved, empowering dedicated entrepreneurs to lead these associations so that they can serve as hubs connecting businesses. Prof. Ngo Thang Loi proposed rapidly transforming local associations into regional organizations, removing administrative barriers and using economic benefits and internal cohesion as criteria for establishing linkages.

Many other experts argued that although numerous policies exist, they are not strong enough to enable private enterprises to achieve breakthroughs.

Dr. Tran Van The, Chair of the Board of Directors of Indel Investment and Development Company, presents his paper: Shortcomings, limitations and barriers to the development of Vietnamese enterprises

Despite its substantial contribution to the economy, accounting for more than 43% of GDP and 82% of the workforce, Vietnam’s private sector has yet to realize its full potential. This was the assessment of Dr. Tran Van The, Chair of the Board of Directors of Indel Investment and Development Company, as he reflected on more than three decades of private sector development.

According to his assessment, the private sector’s limitations stem from both internal and external factors. Internally, most enterprises are small, have limited capital and few employees, and face difficulties accessing credit. Management expertise and technological capabilities remain low, with the rate of high-tech adoption at only around 2% and innovation expenditure accounting for a very small share of revenue.

Linkages between domestic enterprises and the foreign direct investment (FDI) sector remain weak, limiting their ability to participate in global supply chains. In addition, there is a shortage of high-quality human resources, management teams lack professionalism, and business culture and legal awareness among some enterprises are not yet firmly established.

Beyond internal limitations, private enterprises also face numerous barriers in the business environment, including incomplete and unstable institutions and policies, cumbersome administrative procedures and inconsistent policy implementation.

To address the difficulties facing the private sector, Dr. Tran Van The argued that institutions must be improved to ensure consistency, transparency and stability, particularly in investment, land, credit and public-private partnerships.

“Administrative procedure reform must deliver substantive changes, helping enterprises save time and reduce compliance costs,” emphasized the Chair of the Board of Directors of Indel Investment and Development Company.

Dr. Tran Van The also argued that innovation, digital transformation and the green transition must become pillars of private enterprise development strategies. At the same time, small and medium-sized enterprises’ access to resources needs to be improved by increasing their share of credit and providing interest rate support for digital transformation and innovation projects.

On policy, Tran Van The recommended that the State provide financial support for linkage initiatives and tax incentives for large enterprises that lead SMEs, thereby enabling private enterprises to participate in public investment projects and national industrial supply chains.

The panel of chairs moderates the open discussion session

Prof. Dr. Tran Tho Dat, Chair of the Science and Training Council, NEU, shares his views at the seminar

According to Prof. Dr. Tran Tho Dat, Chair of the Science and Training Council, NEU, the private sector is increasingly affirming its role and is now recognized as one of the most important drivers of growth, innovation and job creation in the economy.

Alongside the formal private sector, which comprises enterprises registered to operate under the law, an informal sector continues to exist, contributing approximately 20–25% of GDP but remaining insufficiently recognized in the national socioeconomic policymaking system.

In the new context of the digital economy, formalization, labor transitions and inclusive development strategies require a more comprehensive view of the informal sector. Its role must be properly recognized as an inevitable component that can transform and integrate into the formal economy with appropriate policies.

Through their discussions, participants identified internal shortcomings and limitations, bottlenecks hindering development, and trends of slowing growth in the private sector as it competes with other economic sectors and operates in the international environment.

On that basis, they proposed breakthrough solutions for private sector development to overcome barriers and remove bottlenecks, with the goal of making it the most important driver of the national economy.

Delegates and experts exchange views and discuss issues at the seminar

Prof. Dr. To Trung Thanh, Head of the Department of Research Management, NEU

Speaking on the sidelines of the seminar, Prof. Dr. To Trung Thanh, Head of the Department of Research Management, NEU, said that constraints on private sector development stem from bottlenecks including an incomplete and inaccurate understanding of the sector’s role; institutions and policies that are not yet fully equitable and lack inclusiveness; the absence of effective linkage models among the constituent parts of the private sector; weak internal capabilities and limited access to resources; and limitations in the quality of the entrepreneurial workforce. These bottlenecks need to be clearly identified and promptly addressed through breakthrough solutions to enable substantive private sector development, making it truly the most important driver contributing to economic growth in the new period.

Delegates attending the seminar pose for a commemorative photo

Some images from the seminar:

Article and photos: Department of Communications

News agencies and media outlets covering the seminar:

VNA Media: Removing Bottlenecks to Promote Private Sector Development

Nhan Dan: Breakthrough Solutions to Remove Bottlenecks to Private Sector Development

Lao Dong: Many Private Enterprises Do Not Want to Grow and Tend Toward “Miniaturization”

Vietnamnet: Nearly Half of Private Enterprises Incur Losses Each Year

Vneconomy: The Private Sector: A Pillar “Running Out of Steam” and Concerns About Reluctance to Grow

Saigon Times: Removing Small Enterprises’ Fear of Growing

Vietnam Financial Times: Turning the Resolution into Action to Help the Private Sector Take Off

People’s Deputies: Procedural Reform Must Be Substantive

Tien Phong: Proposals to Remove Obstacles Facing Numerous Private Enterprise Projects

Tomorrow, NEU Will Hold a Seminar on Removing Bottlenecks Facing the Private Sector

Finance Magazine: Private Enterprises Are Large but Not Yet Strong, and Still Face Internal Constraints

Government News: The Private Sector Faces a “Golden Opportunity” from Resolution 68 and a Series of Breakthrough Solutions

CafeF: Prof. Dr. Ngo Thang Loi: ‘Street Vending, Haircutting, Motorcycle Taxi Services… Also Need to Be Included in the Private Sector’

The Private Sector Shows Signs of ‘Running Out of Steam,’ with Many Enterprises Reluctant to Grow

VTC News: The Private Sector Shows Signs of ‘Running Out of Steam,’ with Many Enterprises Reluctant to Grow

Vietnam News Agency: Removing Bottlenecks to Develop the Private Sector

Business Forum: The Private Sector and the Challenge of “Accelerating to Double-Digit Growth”

Banking Times: Five Bottlenecks and Ways Forward for Vietnam’s Private Sector

Journalists & Public Opinion: The Private Sector Needs a Breakthrough Boost to Avoid “Running Out of Steam” as It Develops

People’s Public Security: How Can “Bottlenecks” Facing the Private Sector Be Removed?

Saigon Liberation: Removing “Bottlenecks” to Accelerate Private Sector Growth

The Private Sector: An Important Driver Among the “Three Pillars” of Development

A New Growth Model Needs a Key Economic Sector

Unlocking Digital Infrastructure for the Growth Model

Capital Labor: Removing Bottlenecks to Private Sector Development

Vietnam Finance: Why Do Many Private Enterprises Choose to ‘Stand Still’ or ‘Miniaturize’?

Justice Newspaper: The Private Sector: A Resource for Driving Growth and Breaking Through Bottlenecks

Industry and Trade Newspaper: The Position of the Private Sector Needs to Be More Clearly Defined

Audit Newspaper: Removing Bottlenecks to Enable a Private Sector Breakthrough

Bidding Newspaper: Breakthrough Solutions for Private Sector Development

The Investor: Private Enterprises Want Equal Treatment

Agriculture & Environment Newspaper: Connecting Value Chains to Enhance Private Sector Competitiveness

Finance & Business Magazine: Removing Development Bottlenecks Facing the Private Sector: Challenges Remain

Business Magazine: Reviving the Growth Engine: What Remedy Can Treat the ‘Ailment’ of Internal Weaknesses?

The Messenger: After Nearly 40 Years of Reform, Why Is the Private Sector Still “Running Out of Steam”?

Vietnam Real Estate Magazine: Building an Inclusive Development Model and Improving the Policy System to Promote the Private Sector

Business Administrator Magazine: A Maze of Barriers Surrounds Private Enterprises

Viettimes Magazine: Drawing on Banana Leaf Exports to the United States, an Expert Suggests Ways to Promote Private Sector Development

Proposal to Create a Trading Platform That Small Traders Can Join Free of Charge

Business & Integration: Dr. Tran Van The: Administrative Reform—the Foundation for Sustainable Private Sector Development

Monetary Security: Prof. Dr. Ngo Thang Loi: ‘Street Vending, Haircutting, Motorcycle Taxi Services… Also Need to Be Included in the Private Sector’

Securities Economy Magazine: The USD 67 Billion High-Speed Rail Megaproject: What Opportunities Are There for Small Enterprises to Participate?

Clean Energy Magazine: Removing Bottlenecks to Create Breakthroughs in Private Sector Development

Manager Magazine: Breakthrough Solutions to Remove Bottlenecks to Private Sector Development

VietnamBiz: Expert: ‘The Goal of Reaching 1.5 Million Enterprises in 2025 Is Still Quite Far Off’

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.