Modern industrial policy promotes private sector growth

(Chinhphu.vn) - The Vietnam Annual Economic Report 2025 affirms the key role of the private economic sector and emphasizes the importance of modern industrial policies to promote private enterprises to reach out to the region, contributing to the target of double-digit growth.

Experts discuss at the workshop to announce the Vietnam Annual Economic Report 2025 - Photo: VGP/HT

On June 25, the University of Economics and Business, Vietnam National University, Hanoi, in collaboration with the Friedrich Naumann Foundation (FNF) Vietnam, organized a workshop to announce the Vietnam Economic Annual Report 2025. The theme of this year's report is "Positioning the role of industrial policy in promoting the private sector towards double-digit growth".

Associate Professor, Dr. Dao Thanh Truong – Vice President of Hanoi National University emphasized that this year's theme has special significance in the context of Vietnam's economy facing both opportunities and challenges. According to Mr. Truong, modern industrial policy needs to be positioned as a national strategy, not simply a technical tool. This aims to unlock growth drivers, allocate resources effectively, promote innovation and enhance global competitiveness for the private sector.

Vice President of VNU, Assoc.Prof.Dr. Dao Thanh Truong speaking at the Workshop

Associate Professor, Dr. Dao Thanh Truong emphasized: The private sector currently contributes more than 50% of GDP and creates more than 85% of non- agricultural jobs. Therefore, an in-depth industrial policy will be a prerequisite for this sector to strongly transform digitally, expand the market, and contribute to the double-digit growth target, an inevitable requirement if Vietnam wants to escape the middle-income trap.

In addition to analyzing the current situation, the report also assesses the current growth model and proposes specific policy solutions. The research results show that Vietnam's total factor productivity (TFP) has been low or negative for many years - reflecting an unsustainable growth model that requires profound change. Therefore, a new approach is needed: focusing on private enterprises, industry as the foundation and innovation as the driving force for development.

According to Associate Professor Dr. Nguyen Truc Le - Chairman of the Council of the University of Economics: Industrial policy needs to be constructive, selective and long-term. Mr. Le cited experiences from Japan, South Korea, China and Taiwan (China) showing that effective industrial policy has helped these economies rise to become global technology manufacturing centers. Therefore, Vietnam needs to establish a similar industrial policy, supporting private enterprises to develop sustainably and make breakthroughs.

Mr. Nguyen Truc Le said that internal challenges such as low labor productivity, weak supply chains and ineffective support policies are hindering the development of the private sector. To overcome these challenges, the report proposes many measures, especially emphasizing the role of innovation, digital transformation and public-private partnerships.

Ms. Vanessa Kristina Steinmetz – Director of Friedrich Naumann Foundation (FNF) Vietnam

From an international perspective, Ms. Vanessa Kristina Steinmetz – Director of FNF Vietnam shared the international organization’s view on Vietnam’s double-digit growth aspirations. Ms. Vanessa Kristina Steinmetz emphasized that the private sector is currently the “most dynamic driving force” of the economy, while also highlighting the need for institutional reform, creating a healthy competitive playing field, and supporting businesses in accessing resources in terms of capital, technology, and skills.

“Industrial policy must not only lead, but also empower the private sector,” Steinmetz stressed.

The Vietnam Economic Annual Report 2025 also makes a number of policy recommendations. In the short term, experts agree with the viewpoint of maintaining macroeconomic stability and not being hasty. At the same time, it is necessary to accelerate institutional reform, reduce compliance costs, and improve the effectiveness of business support. In the long term, policies need to focus on supporting businesses in accessing capital, technology, land, and markets; and promoting digitalization of the industry to promptly adjust policies.

The report also emphasizes medium- and long-term plans such as improving the quality of human resources – especially in the fields of technology and innovation; focusing on investments in industries associated with green and inclusive growth; restructuring the economy towards a circular direction to increase adaptability to global fluctuations.

Within the framework of the workshop, experts also participated in an in-depth discussion on Vietnam's economic growth in 2025 and prospects for the 2026-2030 period. Many opinions said that the growth target of 8% in 2025 and double digits in the following period is completely feasible if there are synchronous, long-term policies and the private sector is the main driving force.

The Vietnam Annual Economic Report is a scientific product that has been maintained for the past 17 years, conducted by the University of Economics - Vietnam National University, Hanoi. This publication not only provides a comprehensive, independent and objective view of the Vietnamese economy, but also plays a role in policy criticism, supporting the planning of more effective and practical macroeconomic strategies.

Mr. Minh

Source: https://baochinhphu.vn/chinh-sach-cong-nghiep-hien-dai-thuc-day-khu-vuc-tu-nhan-tang-toc-10225062516380412.htm