Resolution No. 68 - The key to rapid and sustainable development of the private economy Part 1: Private economy - The driving force of innovation and growth

After nearly 40 years of innovation, the private economy has increasingly affirmed its important role in the country's growth and development. In our province, the private economic sector has become the main force, contributing positively to GDP and creating jobs for workers. With the promulgation of Resolution No. 68-NQ/TW dated May 4, 2025 of the Politburo on private economic development, many "barriers" continue to be removed, creating new momentum for this sector to break through, develop quickly and sustainably.

Phuc Khanh Industrial Park. Photo: Trinh Cuong

Lesson 1: Private economy - The driving force of innovation and growth

Our Party has determined that in a socialist-oriented market economy, the private economy (PE) is one of the most important driving forces, playing a pioneering role in promoting growth, creating jobs, improving labor productivity and national competitiveness. The private economy also makes a key contribution to industrialization, modernization and restructuring the economy towards a green, circular and sustainable direction.

The growth of the private economy

The private economic sector of our country currently has more than 940,000 enterprises and more than 5 million business households in operation, contributing about 50% of GDP, more than 30% of total state budget revenue and employing about 82% of the total social labor force. This sector plays an important role in promoting growth, creating jobs, innovation, improving labor productivity, national competitiveness, contributing to hunger eradication and poverty reduction and stabilizing social life. Many private enterprises have grown strongly, affirmed their brands and reached out to regional and international markets.

In Hung Yen province, along with general policies, the province's attention, listening and timely removal of difficulties have had a positive impact on the development of the private economic sector. The number of operating enterprises has increased rapidly over the years. In 2011, the whole province had 2,172 non-state enterprises, by 2015 it had increased to 2,830 enterprises. By the end of 2024, this number reached 18,346 enterprises with a total registered capital of VND 236,886 billion. Currently, after the merger of Hung Yen and Thai Binh provinces, the total number of enterprises in the whole province is nearly 27,660 enterprises. These results affirm the role, position and growth of the private economic sector, especially in contributing to promoting industrialization, modernization, changing the local face, creating an impression, enhancing the position and prestige of the province.

Important contributions to economic growth

From a small garment factory with more than 1,500 workers when it was first established, Tien Hung Joint Stock Company (Hoang Hoa Tham commune) has made a strong transformation thanks to its right development strategy. Determining product quality and reputation with customers as a sustainable foundation, the company continuously improves its quality management system according to ISO 9001:2000 standards, strictly controlling production and business stages. Mr. Pham Tuan Anh, General Director of the Company, shared: The development of the enterprise is always closely linked to the development of the province. This is both a source of pride and a driving force for us to make constant efforts. Each year, the Company contributes tens of billions of VND to the provincial budget, creating regular jobs for nearly 4,000 workers. In 2024, the Company paid over 26 billion VND to the budget, and spent hundreds of millions of VND to join hands with local authorities to carry out social security work.

Production line at Tien Hung Joint Stock Company.

Hoa Phat Group is one of the large enterprises in Hung Yen, for many consecutive years in the group of high budget contributors in the private economic sector. In 2023, the Group's affiliated units paid VND 1,290 billion to the budget, accounting for about 8.4% of the total budget revenue from private enterprises in the province. Currently, the Group creates jobs for nearly 33,000 workers, contributing to the budget in 26 provinces and cities across the country. With outstanding achievements in fulfilling tax obligations and creating jobs, in 2024, 5 units of the Group were honored by Hung Yen province at the conference to commend exemplary taxpayers.

Hoa Phat is one of the enterprises with the largest budget contributions in Hung Yen province.

According to the assessment of the authorities, the KTTN area has actively contributed to the industrial growth and GRDP of Hung Yen province, while creating jobs for tens of thousands of workers inside and outside the province.

 

Barriers to private sector

Despite many positive results, the development of the private economic sector is still not commensurate with its potential. According to Associate Professor, Dr. Nguyen Van Huong, Head of the Faculty of Economics, Hung Yen University of Technical Education, the current barriers mainly come from unsynchronized institutions and policies; the legal system is still overlapping, administrative procedures are complicated; businesses have difficulty accessing resources such as land, capital, foreign markets and global supply chains. According to Mr. Pham Hong Son, Director of FAGO Vietnam Agricultural Development Technology Joint Stock Company in Pho Hien Ward: Businesses are currently facing many difficulties in accessing capital. Banks require real estate assets, while project cash flow is not taken into account. In addition, administrative procedures are still cumbersome, businesses have to pursue many licenses and complicated processes. Sharing the same view, Mr. Le Quang Khai, Director of Quang Loc Nutrition Joint Stock Company (Luong Bang Commune) reflected: We proposed to adjust and expand the project but encountered many difficulties in legal procedures. After more than 3 years, the enterprise has not been able to complete the procedures to be allocated more land. Ms. Nguyen Thi Thanh Ha, Chairwoman of the Hung Yen Provincial Business Association, commented: The private sector in Hung Yen has made clear progress, but to develop strongly and sustainably, it is necessary to seriously acknowledge the limitations. Difficulty in accessing long-term capital and difficulty in retaining high-quality human resources in a competitive environment are difficult problems.

Activities of Toan Phat Company Limited (Pho Noi A Industrial Park).

In addition, although the province has paid attention to investing in infrastructure, the technical infrastructure system and traffic connecting industrial zones and clusters are not really synchronized in some places. Many enterprises, especially small and medium enterprises, lack high-quality labor, outdated production technology; weak management and operation capacity, lack of experience, and lack of strategic vision. These "barriers" cause the number of dissolved enterprises to remain high. In just the first 6 months of 2025, Hung Yen province (before the merger) had 1,160 newly established enterprises, but about 600 enterprises were dissolved or suspended operations.

Phuong Minh - Thu Yen

Source: https://baohungyen.vn/bai-1-kinh-te-tu-nhan-dong-luc-cua-doi-moi-va-tang-truong-3183211.html