Vietnam is working to issue a truly effective resolution that can address the bottlenecks restricting the private sector development to unlock the full potential of private enterprises, heard the first meeting chaired by the national steering committee for private sector development strategy on Saturday. Deputy Prime Minister Nguyen Chi Dung emphasized at the meeting that the planned resolution would empower enterprises, providing them with the momentum to drive significant growth. The private sector is an essential engine of Vietnamese economic growth. During discussions between Party General Secretary To Lam and the Central Committee for Policy and Strategy, all deputies agreed on the importance of the private sector as Vietnam’s most crucial driver of economic development. Notably, the private sector accounts for approximately 50 percent of the country's GDP, over 56 percent of total investment, around 82 percent of the workforce, about 30 percent of total state budget revenue, and above 30 percent of total import-export turnover. Deputy PM Dung underlined that the country had set an ambitious target of having two million enterprises by 2030, with a focus not just on quantity but also on quality. He also pointed to the significance of fostering leading enterprises in such fields as innovation, digital transformation, and green energy. The draft private sector development plan was proposed to offer detailed policies for different types of businesses -- large, medium, small, and micro-enterprises, as well as start-ups and family businesses. These policies would address various issues, including land access, finance, banking, taxation, and technology. Lawmaker Hoang Van Cuong pointed out that the private sector had limited participation in public investment projects in the past, but a significant shift is underway. The government is now offering more opportunities for private companies to bid for public contracts. This new ordering mechanism is seen as a positive signal, aligning Vietnam with other economies where the private sector plays a major role in public sector projects, he assessed. In addition, the government is also aiming to reduce unnecessary administrative procedures by 30 percent, making it easier for firms to operate. The move has been hailed as a crucial opportunity for private enterprises to act and accelerate their growth. As the private sector is not only one of the key growth drivers but also identified as the most important driver, appropriate support policies will play a decisive role in the upcoming period. Pham Xuan Hoe, general secretary of the Vietnam Leasing Association, stressed the need for institutional reforms to unlock the potential of private enterprises. He proposed that the new resolution on private sector development should not include outdated and restrictive administrative procedures that hinder businesses’ access to resources, particularly in terms of land and financing. It is necessary to simplify the processes that would enable enterprises to grow more efficiently and reduce the barriers they face in areas such as land acquisition and business registration. Also, Hoe hinted at removing cumbersome regulations related to credit access, especially those that complicate borrowing through unsecured loans or guarantee requirements, and providing interest rate subsidies for commercial banks to help alleviate financial pressures on businesses. The proposed resolution from the Politburo will include an ordering mechanism that means firms can be assigned to develop key national projects, according to Deputy PM Dung. This is expected to boost private sector confidence, facilitate growth, and encourage more private investment in national development. Building sustainable path forward At a seminar titled ‘Vietnam’s Private Sector: Breakthrough Period of 2025-2030’ held in Hanoi on Saturday, participating experts and entrepreneurs praised the national government’s strategy in enhancing the role of private enterprises in economic growth. Pham Dinh Doan, chairman of Phu Thai Group, said that the rapidly changing global environment is putting pressure on Vietnamese businesses, which must constantly adapt. He urged companies to accelerate their efforts and expand globally. To translate this vision into reality, Doan advocated for a clear ordering mechanism that would allow private enterprises to join global value chains, technology transfer, and sustainable development. An effective support policy will position Vietnamese enterprises to compete with larger international players, he explained. To spur private sector development, the government should support enterprises with access to affordable capital, said economist Dinh Tuan Minh. The government could provide guarantees to private companies, enabling them to access loans from international financial institutions like the Asian Development Bank, the World Bank, and the Asian Infrastructure Investment Bank. By establishing development banks or restructuring the Vietnam Development Bank, the government could offer low-interest loans for infrastructural development both domestically and abroad. Currently, private companies looking to engage in large infrastructure projects often face high lending rates, which undermines their ability to compete effectively. A more supportive financial environment would not only help businesses participate in government-backed infrastructure projects but also foster long-term, sustainable development.