Over the past four decades, the private sector has made miraculous progress. However, to bring Vietnam into an era of prosperity, private enterprises need to accelerate and make further breakthroughs.
More than a decade ago, the story of Vietnamese supporting industry enterprises not being able to produce a screw as ordered by Samsung Group (Korea) caused a stir in public opinion.
This was also cited by the 13th National Assembly delegates when talking about the competitiveness of the economy. “How many PhDs are trained each year but why can’t they produce a screw? So how can they participate in the global value chain?”, delegate Tran Quoc Tuan (Tra Vinh) once wondered.
At that time, the story of Vietnamese enterprises “shaking their heads” at the opportunity that this Korean enterprise brought raised many concerns for the domestic supporting industry. Because this is an industry that plays an important role and significance in the industrialization process and transformation of a country’s production structure.
However, just one year later, four Vietnamese supporting industry enterprises reached the level of Samsung’s Tier 1 supplier and continued to increase the number of suppliers for the Korean “giant” in the following years. By 2023, 306 Vietnamese enterprises had joined the supply network of the Korean technology and semiconductor giant.
This result partly reflects the efforts of domestic enterprises. From a country known for its processing and assembly, Vietnam has made great strides in deeply participating in global supply chains. Especially when more and more Vietnamese enterprises have produced “made in Vietnam” products with serious and systematic investment.
The private economic sector is growing stronger
Over the past nearly 4 decades, Vietnam’s GDP has grown strongly, from 14.1 billion USD to 476.3 billion USD in 2024 with a GDP growth rate exceeding 7%, ranking 33rd in the world. Vietnam has transformed from one of the poorest countries in Asia to an upper-middle-income country and an important manufacturing center of the world. To achieve that result, there is a significant contribution from the private economic sector.
Looking back at the history of nearly 40 years of renovation (since 1986 to present), the private enterprise sector has made miraculous progress in both quantity and quality. According to data from the Ministry of Planning and Investment (now the Ministry of Finance), by the end of 2024, Vietnam had more than 930,000 operating enterprises, of which 98% were small and medium-sized enterprises. In addition, there were about 14,400 cooperatives and more than 5 million business households.
To date, private enterprises have contributed about 45% of GDP, 30% of state budget revenue and attracted 85% of the workforce. Over the past many years, this sector has always grown at a higher rate than state-owned enterprises and foreign-invested enterprises. Many enterprises have “transformed” to develop strongly, accumulating sufficient capacity in capital, technology and management, building brands to reach out to the region and the world.
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