“Equity Over Exclusivity: A New Perspective on Promotions”

A Bright Picture

Speaking at the workshop “From Ho Chi Minh City to the satellite provinces – new opportunities for real estate” on August 22, Prof. Dr. Tran Dinh Thien, former Director of the Vietnam Institute of Economics, affirmed that the current state of the private sector in Vietnam presents a bright picture with many nuances.

Currently, there are over 940,000 private enterprises and about 5 million households doing business in the country, contributing 50% of GDP, more than 30% of state budget revenue, and providing employment for up to 82% of the total labor force. However, most of them are micro, small, and medium-sized enterprises, which are vulnerable to market fluctuations.

The macroeconomic picture for the first six months of the year showed many positive signs. Specifically, GDP growth reached 7.52%, much higher than the 6.42% rate in the same period last year, while inflation was kept at 3.27%, lower than the previous year’s figure of 4.08%.

“The economic picture is generally bright, but within this brightness, there are some nuances to be mindful of. In the history of Vietnam and the world, no country has achieved long-term double-digit growth. Vietnam’s goal of achieving double-digit growth comes with a host of challenges,” said Dr. Thien.

To achieve the growth target, Dr. Thien suggested that the drivers of socio-economic development need to be new and different. Among them, the private sector is considered the most important driver. Science and technology affirm the role of humans. High-level international integration. A facilitative state – co-creating with the people.

“The country’s turning point is being led by a series of strategically important resolutions, known as the ‘four pillars’. These include Resolution 57 on science and technology, Resolution 59 on international integration, Resolution 66 on institutional reform, and Resolution 68 on the private sector,” said Dr. Thien.

Prof. Dr. Tran Dinh Thien affirmed that the breakthrough view during this period is demonstrated through a series of strong and far-reaching commitments. Localities need a spirit of “self-determination, self-action, and self-responsibility,” while avoiding the tendency to criminalize economic and civil relations. The spirit of action is also clear: “only discuss doing, not retreating, and always maintain the belief that nothing is impossible.” The new mindset emphasizes that it is not just about preferential treatment but, more importantly, ensuring non-discrimination, business freedom, and fair competition.

Investment Portfolio Adjustment Needed

Dr. Pham Tran Hai from the Ho Chi Minh City Institute for Development Studies said that the orientation-building for Ho Chi Minh City (new) needs to closely follow five main pillars. These include developing the city’s economy with breakthrough drivers, restructuring development areas to leverage existing advantages, enhancing connectivity between regions through modern transportation infrastructure, promoting sharing in the exploitation and operation of technical infrastructure, and synchronizing infrastructure development.

Based on this, Ho Chi Minh City has formed five concentrated economic development areas: the industrial production area (in wards and communes of the former Binh Duong province); the innovation and high-tech area (Tang Nhon Phu, Dong Hoa, Binh Duong, and Nha Be); the financial and technological center (Sai Gon and Thu Thiem); the specialized industrial, maritime, and logistics area (Phu My, Tan Phuoc, and Long Son); and the marine and island ecological area (Vung Tau, Tam Thang, Phuoc Thang, Phuoc Hai, Ho Tram, Can Gio, and Con Dao).

Therefore, it is necessary to adjust and supplement the list of priority investment projects. Accordingly, the projects will be divided into three groups: the first group includes projects that have become more urgent after the merger and require priority investment until 2030; the second group comprises projects that have decreased in urgency and should be considered for lower priority or removal from the list; and the third group consists of newly emerged projects with high urgency that need to be added urgently for early implementation.