Private economy defined as most important driving force

On behalf of the Politburo, General Secretary To Lam has signed Resolution No. 68-NQ/TW on development of private economy.

Under the Resolution, private economy is defined as the most important driver of the national economy and the pioneering force in science and technology development, innovation and digital transformation.

The private economy, along with State economy and collective economy, shall play pivotal role in building an independent and self-reliant economy, which would help the country to avoid the risk of falling behind and to rise up to prosperous development.

The fast, sustainale, effective and high-quality development of the private economy shall be the a central, urgent and long-term strategic task, according to the Resolution.

From that perspective, the aforesaid task must be incorporated in national development strategies and policies in order to promote all potentials and strengths and unlock all resources for national development.

The Politburo requests that prejudices about the private economy must be completely eliminated. Authorities must nurture and encourage the spirit of entrepreneurship, innovation and respect for businesses and entrepreneurs.

Private enterprises and entrepreneurs shall be free to do business in the domains not prohibited by law, compete equally with other economic sectors in accessing business opportunities and resources such as capital, land, technology, human resource, data and other legitimate resources.

Authorities must create an open, transparent, stable, safe and low-cost environment; formulate breakthrough mechanisms and policies to encourage the private economy in priority areas, scientific and technological research, development and application, innovation, and digital transformation.

The private economy currently accounts for around 50 percent of the country's GDP, more than 30 percent of national budget revenue, and 82 percent of the total workforce.

The country targets to raise the number of private enterprises to two million by the end of this decade. This economic sector is expected to grow by 10-12 percent annually and contribute around 55-58 percent to the national GDP.

By 2045, the number of private enterprises is expected to increase to at least three million and account for over 60 percent of the country's GDP./.