Developing the private economy to become the economic pillar

Identifying the private economic sector (PES) as one of the important driving forces for economic growth, job creation and increased budget revenue, the province has been implementing many synchronous solutions to support private enterprises to develop, gradually removing bottlenecks and creating a favorable business environment.

The private sector contributes increasingly to the economy.

With many incentive policies and mechanisms for development, in recent years, the private economic sector (SES) in the province has developed strongly, participating more and more deeply in production and business activities in many fields such as agriculture , industry, transportation, trade, services, construction and processing of agricultural, forestry and fishery products. In fact, the SES has continuously expanded in scale, diversified in types, improved in both quantity and quality, in which private enterprises in the industrial and construction sectors play the role of the growth engine of the economy.

The province currently has nearly 11,000 private enterprises and establishments operating, accounting for more than 95% of the total number of operating enterprises, of which the old Vinh Phuc province has more than 8,000 private enterprises in operation. The private economic sector has increasingly contributed to the provincial economy, creating hundreds of thousands of jobs, especially in the fields of industrial production, services and trade. The private economic sector has been making strong contributions to the overall development of the local economy, contributing to creating stable jobs for hundreds of thousands of workers inside and outside the province, contributing significantly to the annual State budget revenue and being a pioneer in the process of technological innovation, improving the competitiveness of the locality. In the former Vinh Phuc province's private economic sector alone, in the period of 2017 - 2023, the contribution to the State budget of this sector has grown strongly, from 1,190 billion VND, accounting for 3.96% in 2017 to more than 1,700 billion VND, accounting for 5.62% in 2023; the number of employees working in the private economic sector has increased significantly, from nearly 191,000 employees in 2017 to nearly 220,000 employees in 2024, an average increase of nearly 4,000 employees per year. The private economic sector has promoted the average economic growth rate (GRDP) of Phu Tho province after the merger to reach 10.09%, in which by region Phu Tho increased by 10.33%, ranked 9/63; Vinh Phuc increased by 10.07%, ranked 10/63; Hoa Binh increased by 9.72%, ranked 13/63 provinces and cities, the GRDP growth rate of all 3 provinces is higher than the target assigned by the Government in Resolution No. 25/NQ-CP.

DT Vina Automation Joint Stock Company (Yen Lac commune) invests in machinery and production equipment, enhancing the competitiveness of precision mechanical products, meeting the needs of many domestic and foreign partners.

Despite their size, the reality shows that private enterprises in the province have not developed commensurate with their potential in terms of quantity, scale and operational efficiency. Private enterprises are mainly small and medium enterprises, accounting for more than 95%; of which, micro and small enterprises account for more than 70%. Most enterprises have low-average technological capacity, limiting innovation and application of scientific and technological advances in production and business. Labor productivity in this sector is currently only approximately 100 million VND/worker/year, much lower than that of the state-owned enterprise sector (more than 400 million VND) and the FDI sector (more than 350 million VND/worker).

To make the private economy the pillar of the economy

With the goal of developing the private economy into an important driving force for the province's economic development; being a pioneer in innovation, digital transformation and international integration, the province continues to focus on effectively implementing the policy mechanism on private economic development according to Resolution No. 198/2025/QH15 dated May 17, 2025 of the National Assembly. Proactively remove difficulties, unblock resources, create favorable conditions for private enterprises to develop. Specific solutions, promote administrative procedure reform, apply information technology in handling business registration procedures, investment licensing... thereby shortening time and costs for businesses; focus on solving problems related to access to land, credit, production and business premises. Every year, investment promotion conferences, seminars and dialogues between businesses and the government are held, creating a direct exchange channel to help businesses reflect on difficulties and problems so that they can be promptly resolved.

Workers of Viet Huy Company Limited, Dong Van Craft Village Industrial Park, Te Lo Commune, specialize in producing labor gloves, creating jobs for 15 workers with an income of 6 - 9 million VND/person/month.

Targets to strive for by 2030: The average growth rate of the private economic sector is 10.5%/year or higher, higher than the target of Resolution 68-NQ/TW dated May 4, 2025 of the Politburo on private economic development; the contribution rate of enterprises to the budget value is 50-60%/total budget revenue, contributing 62-65% of the province's GRDP. By 2030, the whole province strives to have about 46,500 operating enterprises (old Vinh Phuc area 20,000, old Phu Tho 19,000, old Hoa Binh 7,500 enterprises) and more than 100,000 operating business households; creating jobs for 84-85% of the total workforce, labor productivity increases by an average of 10-11%/year; The growth rate of budget revenue from the private economic sector reached more than 10% of the province's total budget revenue.

At the scientific workshop to collect comments on the draft document to be submitted to the Phu Tho Provincial Party Congress (after the merger) on the socio-economic field with the theme "Identifying the potential and development orientation of Phu Tho province in the period of 2025-2030, with a vision to 2050", many economic experts and delegates pointed out that after the merger, the province needs to take science and technology, innovation, digital transformation, and the private economy as the main driving force and main resource for economic growth, contributing to growth by 55-60% in 2030; the contribution of the digital economy reaches 30% of GRDP or more. That shows that the new provincial government has great expectations for the private economic sector, which is considered the center of development.

Accordingly, the province will focus on 3 strategic breakthroughs including: Perfecting institutions; investing in infrastructure development and improving the quality of human resources. Regularly receiving and promptly resolving feedback, recommendations, problems, and bottlenecks that need to be removed in the private economic sector with the spirit of creating mechanisms, giving confidence and inspiring the private economic sector to break through, becoming a "development pillar" of the new province's economy, creating a spreading momentum to successfully implement socio-economic development goals in the coming period.

Xuan Hung

Source: https://baophutho.vn/phat-trien-kinh-te-tu-nhan-tro-thanh-tru-cot-kinh-te-236208.htm