The Power of Private Enterprise: Unlocking Vietnam’s Economic Potential through Resolution 68-NQ/TW.

Ma’am, how have the shares of large private enterprises performed since the beginning of the year, and have they played a leading role in the stock market?

Ms. Cao Thi Ngoc Quynh: The current situation shows that the shares of some large private enterprises are indeed the pioneers and pillars of the stock market, typically the Vingroup stocks. While the VN-Index has been stagnant since the beginning of the year, these three stocks have contributed more than 90 points to the market.

In addition, the shares of some large private enterprises have also performed positively since the beginning of the year, including private banks (Techcombank, Sacombank, SHB), Gelex Group, and the Thanh Thanh Cong Group. These stocks have impressive growth rates ranging from 30% to over 100%.

In the context of affirming the role of the private sector in economic growth, especially large enterprises being identified as leading businesses, how do you assess the prospects and potential of these large enterprises’ stocks?

Ms. Cao Thi Ngoc Quynh: There is a clear change in the leadership’s perspective on the private sector in the recent statements of the Government and the ministries and sectors, which is concretized in Resolution 68/NQ-TW of the Politburo. The resolution affirmed the role and position of the private sector as an important driving force of the national economy.

Resolution 68 states that the participation of private enterprises in important national projects should be expanded. The state proactively has policies for ordering, limited bidding or sole bidding, or has preferential policies to encourage the private sector to participate with the state in strategic fields, key research projects, and tasks.

We believe that enterprises in sectors such as Energy, Construction Materials, Infrastructure, and Technology will benefit and achieve breakthroughs when they are entitled to preferential development policies and are allowed to participate in the country’s major projects, such as the North-South High-Speed Railway, urban railways, renewable energy projects, and digital transformation projects…

In addition, with the government promoting the removal of difficulties and obstacles in more than 2,200 projects with a total capital of nearly VND 6,000 trillion, it will contribute to improving the business environment and promoting the growth of the Banking, Real Estate, and Construction sectors.

Can you give an assessment of the solutions and implementation plans for Resolution 68/NQ-TW?

Ms. Cao Thi Ngoc Quynh: Resolution 68 will pave the way for long-awaited institutional reforms, such as protecting property rights and freedom of business, creating a level playing field between state-owned and private enterprises, especially in bidding and accessing land and credit, and unleashing socialized resources – especially in digital infrastructure, energy, and logistics – areas where the private sector is often hindered by administrative procedures.

The government’s support measures include expanding the credit guarantee fund for small and medium-sized enterprises (SMEs) to at least VND 50,000 billion, implementing green credit limits with preferential interest rates, providing 200% tax incentives for research and development (R&D) and labor training activities, and developing domestic venture capital through co-investment models between the state and the private sector.

The government will also launch the “Vietnam Global Champions” program to support 50 potential enterprises in M&A consulting, political risk insurance, and priority access to trade negotiations; increase the localization rate to at least 60% for the electronics, automobile, and textile industries through component tax incentive packages.

If effectively implemented, Resolution 68 can help build a three-tier private sector ecosystem, consisting of leading corporations, satellite small and medium-sized enterprises (SMEs), and innovative startups, positioning this sector as the central pillar of Vietnam’s economy by 2045.

The US-China negotiations have shown positive signs. How do you think this will have a spillover effect?

Ms. Cao Thi Ngoc Quynh: The recent tariff negotiation developments are an initial positive signal, but we should remain cautiously optimistic. The negotiations are still relatively slow, and only one country has signed an agreement, which is not particularly advantageous. We also have positive news in the negotiations between the US and China. Meanwhile, the negotiation process between the US and its major trading partners, such as Japan, South Korea, India, and Vietnam, has not yet made a breakthrough. Therefore, tariff negotiations remain a variable that needs to be closely monitored in the future.

The scale of tax cuts this time is expected to be better than expected and is an important step in easing tensions. However, it is still too early to say that the risks are over. The current developments have a positive psychological impact on investors, and we will have favorable trading sessions this week. However, investors need to monitor the results of the negotiations between the US and Vietnam to make cautious investment decisions.