Private Sector: The Strategic Pillar for Vietnam’s Economic Growth – Party Chief Tô Lâm
Hanoi, The Gulf Observer: Party General Secretary Tô Lâm has emphasized that the private economy is not only vital for expanding production, trade, and services but also plays a crucial role in enhancing labor productivity, fostering innovation, and strengthening national competitiveness.
In a recent article discussing the strategic role of Vietnam’s private sector in boosting the national economy, the Party chief highlighted that many Vietnamese private enterprises have grown significantly, establishing their brands on a global scale. He asserted that with a favorable development environment, Vietnamese businesses can thrive and compete fairly with international counterparts.
Reflecting on Vietnam’s journey from an inefficient centrally planned economy in 1989, with an average per capita income of only $96, to the 24th largest economy globally in purchasing power parity (PPP), Lâm acknowledged the transformative impact of the Đổi Mới (Renewal) policy. By 2025, the nation is projected to join the ranks of upper-middle-income countries with an average annual income exceeding $5,000 per person.
Lâm underscored that this success is the result of the Party’s leadership, comprehensive policy reforms, and the tireless efforts of the entire nation. He praised the private sector as a key pillar of the economy, contributing around 51% of the national GDP and generating more than 40 million jobs, which constitute over 82% of the total labor force.
However, he also pointed out persistent challenges such as limited financial capacity, inadequate management skills, and obstacles in accessing resources like capital and skilled labor. He stressed the need to address these issues through policy improvements, transparent governance, and fostering fair competition.
The Party chief outlined seven strategic measures to strengthen the private sector, including completing the market economy mechanism, protecting property rights, promoting entrepreneurship, and enhancing business ethics and social responsibility.
Lâm envisioned the private sector as the driving force behind Vietnam’s industrialization and modernization, aiming to account for 70% of the national GDP by 2030. He concluded by reaffirming that Vietnam’s prosperity must be built on the robust foundation of a dynamic and innovative private economy.
