The Private Enterprise’s Mission for the “Era of National Aspiration”

Today’s (September 21) Permanent Government Conference with large private enterprises (DNTN) is a special event in a special context as we prepare to enter a new era, the Era of National Aspiration, as Comrade To Lam, General Secretary and President, stated.

This is the first conference of the Permanent Government with representatives of large private corporations to remove obstacles, promote pioneering roles, and proactively invest in major projects. It also prioritizes socio-economic development and corporate social responsibility.

The event took place shortly after Typhoon Yagi caused initial damage estimated at nearly VND 50 trillion. This number may increase as more people and businesses report their losses to the authorities. This is a socio-economic blow as Typhoon Yagi and its aftermath had a vast impact, affecting 26 provinces and cities in the entire North and Thanh Hoa, accounting for over 41% of GDP and 40% of the country’s population. This region includes many provinces that are industrial, agricultural, and tourism hubs, driving the country’s growth.

In light of this, many private corporations immediately announced substantial support packages. Notably, VinGroup pledged VND 250 billion for emergency relief efforts, including rebuilding about 2,000 collapsed houses. Banks such as SHB, VIB, MBBank, and SeABank each contributed VND 2 billion. Other private corporations are also calculating and balancing their support packages in the face of this widespread natural disaster. Clearly, DNTNs are effectively fulfilling their social responsibilities by joining hands with the State.

According to the Ministry of Planning and Investment, in 2023, the private sector contributed approximately 46% of GDP, generated about 30% of the state budget revenue, and attracted 85% of the labor force. A group of large private enterprises has emerged, accumulating sufficient scale in capital, technology, and management and establishing their brands in the regional and global markets. They have become an essential driver of the economy.

Although there are now medium-sized and large enterprises, they have not yet led the economy as expected. The proportion of investment in leading and dynamic sectors, especially new industries such as clean energy production, chips, microchips, and semiconductors, remains low. There is a lack of large-scale projects to create breakthroughs, spillover effects, and support for economic restructuring and enhanced competitiveness.

Vietnam’s business community is still young compared to its regional and global counterparts, lacking capital accumulation, knowledge, technology, experience, and business traditions. Most businesses in the economy are small and medium-sized and lack core technology and the capacity to digitize and green their operations. The proportion of enterprises engaged in the processing industry is also limited.

As of the end of 2023, the total assets of some large private enterprises reached approximately $70 billion. Thus, the total assets of Vietnam’s largest private corporations are equivalent to those of India’s Infosys. This comparison excludes the leading corporations in real estate, science, technology, and automobiles in other economies.

According to the World Bank (WB), 80% of global profits are generated by the top 10% of corporations, which, on average, contribute one-third of a country’s export revenue and half of its export growth. With a population of 100 million and a rapidly growing market like Vietnam, large private enterprises have ample room to grow, and Vietnam aspires to have renowned corporations that can compete internationally rather than just domestically.

The year 2024 is a pivotal year for acceleration and breakthrough, holding great significance in successfully implementing the 2021-2025 Socio-Economic Development Plan. From the outset, the Government issued Resolution 01/NQ-CP, identifying 12 groups of key tasks and solutions, many of which require the dominant participation and collaboration of large enterprises. These include developing infrastructure (highways, airports, seaports, digital infrastructure, social infrastructure, healthcare, and education) and accelerating the construction of critical national transportation infrastructure projects.

Implementing the Power Development Plan VIII and effectively realizing the Declaration on the transition from coal to clean energy; attracting investment in offshore wind and hydrogen energy projects in Vietnam. Advancing from traditional telecommunications infrastructure to digital infrastructure; promoting the development of the digital economy, green economy, and circular economy. Strengthening research and development (R&D) and attracting investment in key industries, foundational industries, and emerging technologies (such as chip semiconductors).

To fulfill their pioneering and leading roles in critical sectors; to master the value chains in industry and agriculture and compete internationally in foundational and priority industries, large enterprises, according to the Ministry of Planning and Investment, need to take the initiative and be pioneers in significant, challenging, and novel endeavors. They should strive to solve national-level problems to propel economic development and create opportunities for small and medium-sized enterprises in other sectors.

With their financial strength, research and development capabilities, high-quality human resources, extensive experience, and long-standing reputations, the time has come to bestow greater missions upon these large enterprises. Beyond profit-oriented business operations, large enterprises should join forces with large state-owned corporations and invest in new industries of the Fourth Industrial Revolution. They should align with the trends of green, circular, and sustainable development, such as electric vehicles, the semiconductor industry, artificial intelligence (AI), high-quality and low-emission agriculture, and participate in significant national projects like the North-South high-speed railway, urban railways, the Vientiane-Hanoi high-speed road, and offshore wind and renewable energy projects.

Large enterprises should spearhead innovation, digital transformation, and the application and mastery of science and technology in the Fourth Industrial Revolution. They should be pioneers in international integration and effective overseas investment, efficient exploitation of national resources, research and implementation of policies that balance socio-economic development and social welfare, and the training of high-quality human resources and intelligent enterprise management. Large enterprises should embody the role of “leading enterprises,” transferring technology, proactively forming joint ventures and linkages, guiding and leading, and creating opportunities for small and medium-sized enterprises to participate as subcontractors and develop together within value chains.