Nurturing Private Sector Growth: A Commitment to Genuine Engagement

On the afternoon of October 13th, the Standing Committee of the Vietnam Fatherland Front (VFF) Central Committee organized a National Workshop on Enhancing the Role of the VFF in Private Sector Development.

Fostering Private Sector Growth

In her opening remarks, Ms. Ha Thi Nga, Vice Chairwoman of the VFF Central Committee, emphasized that the VFF system and its member organizations have progressively become a cornerstone for the robust development of the private sector.

Ms. Ha Thi Nga highlighted that Resolution No. 68 of the Politburo has tasked the Party Committees of the VFF and central mass organizations with leading and directing the formulation of programs and plans to guide and mobilize the public in implementing the resolution. This includes enhancing social supervision, critique, and participation in the development of laws, mechanisms, and policies for private sector growth.

The action program of the Party Committees of the VFF and central mass organizations outlines key tasks and solutions, including intensifying advocacy, mobilization, and innovation in thinking to elevate awareness and action. This aims to inspire entrepreneurial spirit, national pride, and the aspiration to contribute among members and the public, thereby driving private sector development.

“Strengthening support for members, private enterprises, and the public in engaging in private sector development. Launching and organizing practical and effective patriotic emulation movements to contribute to private sector growth. Effectively fulfilling the role of social supervision and critique, and participating in the development and improvement of laws, mechanisms, and policies for private sector development,” stated Ms. Ha Thi Nga.

Removing the “Golden Hoop”

Presenting the keynote report at the workshop, Assoc. Prof. Dr. Tran Dinh Thien noted that after nearly 40 years of renovation, Vietnam’s private sector comprises over 940,000 enterprises and more than 5 million individual business households. This sector contributes approximately 50% of GDP and over 30% of the state budget revenue.

However, according to Assoc. Prof. Dr. Tran Dinh Thien, the private sector still faces numerous barriers hindering its development, failing to achieve breakthroughs in scale and competitiveness, and falling short of expectations.

Assoc. Prof. Dr. Tran Dinh Thien stressed that the perception of the private sector’s role and position within the economy remains incomplete and lags behind development requirements. “This is a ‘golden hoop’ of thought. Without addressing this, it will take a long time to establish a suitable institutional and policy framework for private sector development,” he stated.

According to Dr. Thien, Resolution 68 has created a breakthrough in thinking and institutional development, paving the way for a conducive business environment. It liberates and mobilizes resources while bolstering confidence for the private sector, all economic components, and society at large.

Regarding the VFF’s role, Assoc. Prof. Dr. Tran Dinh Thien suggested that the VFF should ignite the entrepreneurial spirit, self-reliance, creativity, and national pride among all social strata. This would encourage people to engage in production and business activities, striving for legitimate prosperity.

The VFF should also fulfill its role in social supervision and critique, enhancing the quality and effectiveness of its participation in legal and policy development for private sector growth. This contributes to institutional improvement, ensuring the legitimate rights and interests of citizens and businesses.

Policies Must “Engage with Reality”

In his presentation at the workshop, Mr. Nguyen Van De, Chairman of the Vietnam Private Hospital Association, emphasized that 20 years ago, private hospital investors were on the brink of bankruptcy. However, through the determination of pioneers and persistent advocacy to Party and State leaders about the private sector’s role, there are now nearly 500 private hospitals nationwide, thanks to Party and State policies.

“With the spirit of Resolution 72 on breakthrough healthcare for the people, we have pledged to Party and State leaders that by 2050, 50% of the country’s hospitals will be private,” stated Mr. De.

To foster private sector development, Mr. De emphasized the importance of human factors. He noted that with the same policies, if officials dare to think, act, and innovate, implementation will be swift. However, if authorities and officials avoid responsibility, it will “stifle investment enthusiasm for the nation.” Therefore, Mr. De believes it is crucial to identify individuals with vision, dedication, and a heart for nation-building, placing them in appropriate positions.

For local governments, Mr. De suggested genuine engagement with “those who wish to develop the locality,” avoiding “distinctions between groups.” Focus should be on individuals who invest effort, capital, and passion, attracting labor to the locality, regardless of personal connections.

“This bottleneck is dangerous. Those deserving of responsibility must be entrusted with it,” Mr. De emphasized, adding that policy formulation should “engage with reality” to remain practical.