Eliminating Prejudices – Creating Momentum for the Private Economy to Take Off

Over the years, the private economy has gradually affirmed its vital role in Vietnam’s economic landscape. Contributing approximately 42-45% of GDP, creating millions of jobs, and driving innovation, the private sector has increasingly become a key force behind the country’s economic growth.

However, one of the biggest barriers to its development remains deep-seated prejudices. Many private businesses still struggle to access government support policies, markets, and capital due to lingering misconceptions about the role of the private sector in the economy. General Secretary Tô Lâm recently emphasized the need to completely eliminate all prejudices against private enterprises and ensure a level playing field for their growth.

Prejudices and Their Negative Impact

Despite government policies encouraging private economic development, long-standing biases continue to hinder the sector:

1. The misconception that private enterprises prioritize profit over social contribution
A common prejudice is the belief that private businesses focus solely on making profits without contributing much to society. However, in reality, besides generating economic value, private enterprises create jobs, increase tax revenues, and drive technological innovation.

2. Hesitancy in supporting private enterprises
In many cases, private enterprises still face difficulties in accessing capital, land, and government support policies due to the reluctance of certain regulatory agencies. Some private businesses report experiencing discriminatory treatment, as state-owned enterprises (SOEs) and foreign direct investment (FDI) enterprises often receive more favorable conditions. This has limited the growth potential of domestic private firms.

3. Concerns over the stability and sustainability of private enterprises
Some hold the belief that the private economy is high-risk and vulnerable to market fluctuations, making it unsuitable as a pillar of the national economy. However, global economic success stories prove that the private sector is not only a growth engine but also a foundation for national competitiveness and sustainable development.

The Importance of Changing Perceptions

For the private economy to realize its full potential, changing societal and institutional perceptions is critical:

1. Recognizing the private sector as a pillar of the economy
The Vietnamese government has repeatedly affirmed that the private economy is a key pillar of national development. The 5th Plenum of the 12th Central Committee emphasized the need to foster private sector growth and establish it as a primary driver of the economy. This reflects a significant shift in economic governance, paving the way for private enterprises to compete on equal footing with other economic sectors.

2. Shifting the mindset in government management
Regulatory agencies must adopt a more open and flexible approach to private enterprises. Instead of viewing the private sector as a secondary economic force, it should be regarded as a strategic partner in national development. This shift will unlock the full potential of private businesses while creating a fair and competitive business environment.

3. Ensuring transparency and fairness in the business environment
A transparent and fair business climate is essential for private sector growth. The government must establish strict monitoring mechanisms to ensure that private enterprises have equal access to resources, opportunities, and government support programs.

Specific Measures to Eliminate Prejudices

To remove existing biases and empower the private economy, comprehensive solutions must be implemented at both the policy and practical levels:

1. Institutional Reforms and Support Policies
The government must continue to refine policies, ensure consistency, and enhance transparency in private sector regulations. Simplifying administrative procedures, reducing unnecessary business conditions, and improving market access are essential steps to create a more favorable environment for private enterprises.

2. Changing Public Perception
In addition to government reforms, public awareness campaigns are needed to educate society on the positive impact of the private economy. Media outlets can play a crucial role in highlighting successful private businesses, demonstrating their contributions to job creation, innovation, and economic stability.

3. Encouraging Public-Private Partnerships (PPP)
Strengthening cooperation between the public and private sectors will help leverage the strengths of both. PPP projects in infrastructure, education, healthcare, and technology will allow private enterprises to play a greater role in national development while optimizing state resources.

Conclusion

By changing economic governance, improving the business climate, and fostering public-private cooperation, Vietnam can unlock the full potential of its private sector. With determination from policymakers and commitment from the business community, Vietnam has the foundation to build a modern, fair, and dynamic economy—where the private sector plays a pivotal role.