Private sector seen as key driver but still constrained

Drawing lessons from countries such as Japan, the Republic of Korea and China, experts point out that no economy can achieve sustainable success without a strong private sector.

According to Dau Anh Tuan, deputy secretary general of the Vietnam Chamber of Commerce and Industry (VCCI), the number of private enterprises in Vietnam’s top 500 firms has increased significantly, with 76 Vietnamese companies now ranked among the Top 500 in Southeast Asia.

However, he highlights persistent structural challenges, noting “Vietnam’s private sector is large but not yet strong, dynamic but not deep, and its contribution to global value chains remains modest.”

In his view, the sector remains unbalanced, with most revenue concentrated in finance and real estate, while manufacturing accounts for a relatively small share. Around 97% of private firms are small and medium-sized enterprises, alongside approximately five million household businesses.

Due to their limited scale, many firms struggle to invest in research and development and innovation. Weak corporate governance and family-run business models also limit their ability to integrate into global supply chains.

High business exit rate raises concerns

Data from the National Statistics Office under the Ministry of Finance shows tens of thousands of enterprises exit the market each quarter.

Experts stress the need for deeper analysis of this trend, including which firms are leaving and why - whether due to market constraints, limited access to resources, or regulatory and institutional barriers.

National Assembly deputy Trinh Xuan An from Dong Nai province notes that 91,800 enterprises exited the market in the first quarter of this year, raising concerns about the overall health of the business sector.

“This reflects significant difficulties in the enterprise ecosystem. The government needs a clearer assessment of the causes in order to design more targeted support policies, because enterprises are the key to achieving double-digit growth,” he argues.

Need for stronger corporate champions

As Vietnam aims for annual double-digit growth in the 2026–2030 period, strengthening the private sector and developing large domestic corporations is essential to achieving this goal.

However, Prof. Dr. Ngo Thang Loi of National Economics University - Hanoi points out that Vietnam still lacks a sufficient number of large private firms capable of acting as “leading anchors” in the economy.

He highlights the absence of mid-sized enterprises as a critical gap in the ecosystem, limiting linkages between small firms and large corporations.

“As a result, most private firms remain micro or small, with weak technology capabilities and fragmented operations, making it difficult to integrate into domestic and global value chains,” he says.

Calls for institutional reform and targeted support

International experience shows that successful economies rely on a balanced structure of large corporations, mid-sized firms and SMEs, where large enterprises play a leading role while SMEs integrate into supporting industrial ecosystems.

Associate Professor Dr. Tran Dinh Thien, member of the Prime Minister’s Economic Advisory Group, argues that Vietnam’s corporate sector stays too fragmented, with a short average business lifespan.

“The state should redesign its support policies. Instead of spreading resources thinly, we need to focus on key leading enterprises and address bottlenecks in specific value chains,” he suggests.

He further emphasises that policy should aim not only to increase the number of enterprises, but to build strong private corporations capable of leading industries and participating in global value chains.

Market-based policies and performance-driven support

Dr Bui Thanh Minh, deputy director of the Private Sector Development Research Board (Board IV), underlines that enterprises must operate under a fully market-based mechanism, including within the public sector.

He stresses that support policies should be based on measurable performance indicators rather than selecting predetermined winners.

“All enterprise policies must have clear Key Performance Indicators (KPIs), specific targets and strong monitoring mechanisms,” he says, adding that businesses should be recognised as key economic cells that generate jobs, income and social responsibility.

Private sector participation in supply chains - Key to sustainable export growth

VOV.VN - To achieve sustainable export growth, Vietnam must boost the role of domestic private enterprises in supply chains to leverage opportunities from multinational corporations and reduce reliance on foreign direct investment (FDI ) businesses.