Hanoi (VNA) - To achieve annual growth of 10% or higher in the 2026-2030 period, it is essential not only to mobilise new resources but also to unlock those that remain constrained. When businesses spend less time on procedures, gain more transparent access to land and capital, and operate in a stable, predictable business environment, reform policies can be truly translated into projects, products, jobs and productivity gains.
Removing institutional bottlenecks is considered the fastest way to create new growth momentum for businesses as Vietnam pursues its double-digit growth target.
Institutions paving way for businesses
On the journey from an investment idea to production, businesses may have to complete numerous procedures related to planning, land, environment, construction, and fire prevention and firefighting.
According to feedback collected from businesses by the Vietnam Chamber of Commerce and Industry (VCCI), the investor selection process, particularly in cases requiring bidding, can take years. Applications often pass through multiple agencies, while the same information must be declared and submitted repeatedly at different levels. Many projects are not short of capital or investors but are delayed due to a lack of effective coordination mechanisms and clear accountability.
The 10% growth target requires a major shift in the way resources are mobilised and used. In recent years, the Party and State have introduced various policies to remove barriers and expand development space for businesses.
Notably, after more than a year of implementation, Politburo Resolution No. 68-NQ/TW on private sector development has provided important support, affirming the role of the private economic sector, strengthening confidence and encouraging businesses and entrepreneurs to innovate, take risks and invest.
From late April to May, the Government also issued 11 resolutions on reducing, decentralising and simplifying administrative procedures and business conditions to facilitate production and business activities.
Together with circulars from ministries and sectors, 321 administrative procedures have now been decentralised from central to local authorities; 697 procedures and 1,754 business conditions have been eliminated; and 704 procedures simplified.
The time required for administrative procedures has been cut by 53%, equivalent to 51,247 days out of a total 96,675 days, while compliance costs have fallen by 54.6% compared with 2024, expected to save society around 23 trillion VND (874.67 million USD) annually.
VCCI Chairman Ho Sy Hung said the Government’s strong directions have sent a clear message about an administration being redesigned so that businesses are not merely subjects of management but partners in development.
More importantly, reform is not simply about removing paperwork or shortening procedures, but about “opening the way” for businesses and laying the foundation for a shift from pre-inspection to post-inspection, from licensing-heavy management to a more transparent system based on information disclosure, risk management and accountability.
However, reform outcomes are meaningful only when measured by businesses’ actual experiences. According to the National Statistics Office under the Ministry of Finance, in the first six months of 2026, nearly 170,000 enterprises were newly established or resumed operations, up 11.2% year-on-year, while more than 151,000 enterprises withdrew from the market, up 18.8%. This indicates that the resilience of part of the business community remains limited.
Difficulties in accessing preferential loans and land remain two major bottlenecks. A VCCI survey showed that 56.3% of businesses believed interest rates and lending conditions for the private sector were more difficult than those for state-owned enterprises; 45% said loan procedures remained cumbersome; and 74% had delayed or cancelled business plans due to land-related administrative obstacles.
Expanding development space
Dr Nguyen Minh Thao, head of the Business Environment and Competitiveness Research Division under the National Institute for Economics and Finance at the Ministry of Finance, said the business community, particularly the private sector, should be viewed as a central driving force in the new growth strategy, reflecting an important shift in Vietnam’s development thinking.
While the state economic sector continues to play a leading role, the private sector needs conditions to grow stronger and become a more dynamic, innovative force contributing substantially to high and sustainable growth.
Businesses need not only incentives but, above all, a stable, transparent, open and predictable business environment. The State should shift from management to development facilitation, eliminate the mindset of “banning what cannot be managed”, urgently remove institutional bottlenecks, substantively reduce business conditions and administrative procedures, accelerate digital transformation and narrow the gap between policy and implementation.
At the same time, breakthrough mechanisms are needed to develop large-scale private enterprises capable of leading the market, while completing legal frameworks to encourage investment in science and technology, innovation, green transition and compliance with new market standards.
Tran Thu Trang, chairwoman of Hanel PT and the Bac Ninh Industrial Production Association, said high growth can only be sustainable when the internal capacity of Vietnamese enterprises is strengthened. Therefore, practical connections between domestic businesses and the foreign direct investment (FDI) sector need to be promoted.
The key is not only the number of projects or registered investment capital, but also creating opportunities for Vietnamese firms to participate more deeply in supply chains, increase localisation rates and retain greater added value domestically.
To achieve this, businesses must proactively invest in governance, human resources, technology, quality and delivery capacity, gradually mastering higher-value-added areas such as research and development, design, intellectual property and branding.
It is clear that double-digit growth cannot rely solely on public investment, credit expansion or external capital flows. The decisive foundation is a stable and transparent policy environment that ensures property rights, business freedom and fair competition, enabling enterprises to calculate costs, assess risks and confidently expand investment./.
VNA
