Brian Jeffrey
During the recent discussion titled “Unleashing the private sector through Resolution 68: What needs to be done now,” organized by the Government Portal, Hieu underscored the critical nature and appropriate timing of Resolution 68. He highlighted that the resolution conveys powerful messages aimed at remedying entrenched challenges faced by the private sector.
According to Hieu, if this resolution is effectively executed, it could symbolize a third significant leap forward for Vietnam’s private economy.
He traced the first leap to the formal acknowledgment of the private sector during 1988 to 1990, while the second was associated with the provision of business rights and regulatory reforms that simplified market access from 1999 to 2000, particularly through the enactment of the Enterprise Law.
“Resolution 68 is poised to transform the private sector, enhancing its overall quality,” Hieu asserted.
He laid out three major goals articulated by the Politburo.
The first aim is to ease market entry by eliminating bureaucratic hurdles, including a goal to decrease compliance costs by 30%. He emphasized that this is a substantial advancement compared to the early 2000s reforms.
The second goal involves fortifying protections for private enterprises, particularly by reducing the criminalization of issues related to the private sector, thus lowering operational risks.
The third goal is to free up resources, enabling businesses to gain easier access to land, infrastructure, capital, and skilled personnel.
Bui Thu Thuy, the Deputy Director of the Department for Private Business and Collective Economic Development at the Ministry of Finance, affirmed that Resolution 68 signifies a groundbreaking change. She pointed out how the resolution is dismantling longstanding “business conditions” that previously posed significant obstacles.
“It’s a true breakthrough – akin to shattering a frozen wall,” Thuy remarked.
Most crucially, she stressed the confidence that the Party and Government are showing in the private sector.
Thuy elaborated that foreign direct investment (FDI) accounts for just over 20% of national GDP, with state-owned enterprises contributing a similar proportion. In contrast, the domestic private sector exceeds 50%. With Vietnam aiming for an 8% GDP growth rate by 2025 and potentially double-digit growth soon after, the private sector is essential for achieving these targets.
From a corporate standpoint, Tu Tien Phat, CEO of ACB Bank, mentioned that businesses have long been worried about four primary issues: costs, procedures, market access, and the transition to greener practices. He stated that Resolution 68 addresses these matters, but success hinges on proper implementation.
Phan Duc Hieu noted that reforming institutions is the most efficient, equitable, and impactful approach.
“Resolution 68 predominantly centers around institutional reform. By focusing on robust reforms in this area, the effects will be significant. Institutions need to take the lead for successful outcomes,” he stated.
In the long run, Hieu suggested the creation of an autonomous Institutional Reform Agency under the Prime Minister, with the power to propose laws and oversee their implementation.
He referred to South Korea’s approach, where the Ministry of Justice assesses all proposed legislation before it becomes a formal draft. If the Ministry finds the proposal lacking, it is sent back for modification.
Bui Thu Thuy remarked that the rollout of the resolution has progressed at an extraordinary pace.
“In the last two months, our team has been working almost continuously. The National Assembly has already outlined nine groups of solutions with specific actions ready for immediate execution. The action plan includes around 50 tasks, most of which are set to be completed by 2025,” she noted.
While the resolution provides a vision extending to 2045, the main tasks will be focused within the next two years to ensure that “institutions lead the charge.” The period from 2026 to 2030 will aim at freeing up and optimizing private sector resources, targeting an 8–10% growth rate. Any delays in institutional reforms until 2029 could threaten these objectives.
“The government’s resolution is anticipated to be issued in May – potentially as soon as next week,” she concluded.
