Resolution No.68 unleashes private sector development

The private economic sector is the most important driver of the economy as affirmed in the Politburo’s Resolution No.68. (Photo: VietnamPlus)

Hanoi (VNA) – The Politburo’s Resolution No.68 is expected to be a historic catalyst, helping remove institutional bottlenecks and pave the way for the private sector to thrive and significantly contribute to the country’s economic advancement.

Historic advancement

Vietnam’s economic transformation post Doi Moi (renewal) is a story of policy shifts and evolving perceptions. In the early years, private businesses operated under suspicion and fear of ideological deviation from the socialist path.

However, the reality has proved that the development of the sector represents a crucial factor in the nation’s economic growth and prosperity.

A pivotal moment came with the institutionalisation of private economy's role. The 2013 Constitution formally recognised and protected the rights of all economic sectors, including private enterprise. The State encourages and creates conditions for entrepreneurs, enterprises, organisations and individuals to invest, produce, and conduct business.

At the same time, the Party’s resolutions and documents have affirmed the private economy's role, demonstrating consistent commitment to economic development policies. These documents serve both as theoretical declarations and practical guidelines, creating a stable political environment that promotes confidence and determination among private enterprises.

The existence and development of the private economic sector are the key to the nation’s growth and prosperity. (Photo: VietnamPlus)

Experts said addressing institutional barriers and creating a business-friendly environment that is transparent, open, and secure is crucial to the sector’s strong growth.

Dr. Bui Van Huyen from the Ho Chi Minh National Political Academy noted that Vietnam has achieved remarkable success over nearly 40 years of reform, partly due to continuously renewed institutions. However, amidst both domestic and global shifts, Vietnam's institutional framework is showing signs of inefficiency.

She explained that while economic institutions have made significant progress, political institutions and other sectors have lagged behind, hindering policy implementation and establishment of a favourable business environment.

Internal inconsistencies within institutional categories include overlapping and contradictory legal documents that create compliance difficulties for businesses and citizens. Additionally, inconsistencies between domestic and international institutional frameworks like differences between domestic regulations and international commitments, have challenged Vietnam’s international economic integration.

Against the backdrop, the Politburo’s Resolution No.68 marks a turning point. By recognising the important role of the private sector, it symbolises a shift in both mindset and policy of the Party and State.

Institutional reform in action

Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management, emphasised the significance of removing institutional obstacles, enabling state management agencies to effectively implement protocols, and allowing businesses and citizens to comply properly.

She noted that institutional reform must begin with concrete actions such as simplifying administrative procedures for business registration and facilitating information access. Administrative reform and the improvement of public servants’ capacity are crucial to ensure that the policies are effectively put into practice.

Performance should be evaluated using concrete metrics, with feedback from both the public and businesses, she said.

Administrative reform and improvement of public servants’ quality are the key to ensure Resolution No. 68 is put into practice. (Photo: VietnamPlus)

Meanwhile, National Assembly deputy Le Quan, Director of the Vietnam National University, Hanoi, affirmed that the private sector needs rational mechanisms for development, particularly for resources access and bankruptcy procedures. He elaborated that the natural cycle of businesses sees many startups fail within five years.

International organisation reports indicate that Vietnam’s current bankruptcy procedures are complicated, posing challenges for enterprises who need a second chance after failure. Furthermore, policies supporting small and medium-sized enterprises (SMEs) through financial access, innovation, and institutional support will be key to strengthening Vietnam’s national businesses, enabling them to grow into strong economic groups.

Quan saw innovation enterprises as the "key" to the future, proposing specific solutions to promote innovative enterprise development. These include policies expanding designated bidding, restricted bidding, or procurement for enterprises applying scientific, technological, and innovative solutions.

Innovation enterprises are the "key" to the future. (Photo: VietnamPlus)

National Assembly deputy Nguyen Manh Hung, member of the parliament’s Economic and Financial Committee, underscored the need for connectivity between economic sectors, stating policies must shape up support, coordination, and linkage between enterprises and between private, and State-owned, and FDI enterprises.

Resolution No.68 has received enthusiastic response from the public and is viewed as a golden opportunity for the private sector to thrive. Experts believed that it is essential to create a favourable environment for private firms so that they could make further contributions to the nation’s development./.

The National Assembly has formalised Politburo No.68 by issuing legal documentation, creating a legal framework for private sector development. (Photo: VietnamPlus)

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