Resolution to shatter long-standing barriers

At the recent forum “Unleashing the private sector through Resolution 68: What needs to be done now,” hosted by the Government Portal, Hieu emphasized the importance and timeliness of Resolution 68. He noted that the resolution delivers strong and clear messages that directly address long-standing obstacles in the private sector.

If implemented effectively, Hieu said, this could represent the third historic breakthrough for Vietnam’s private economic sector.

He identified the first breakthrough as the official recognition of the private sector (1988–1990), and the second as the granting of business rights and administrative reforms allowing easier market entry (1999–2000), marked by the introduction of the Enterprise Law.

“Resolution 68 will reshape the private sector in terms of quality,” Hieu stressed.

He highlighted three key objectives outlined by the Politburo.

First is to facilitate market entry by removing administrative barriers, including reducing compliance costs by 30%. This, he noted, is a significant step beyond the reforms of the early 2000s.

Second is increasing protection for private businesses, especially by minimizing criminalization in handling private sector legal issues - thereby reducing operational risks.

Third is unblocking resources, allowing businesses to access land, facilities, capital, and talent more easily.

Bui Thu Thuy, Deputy Director of the Department for Private Business and Collective Economic Development under the Ministry of Finance, confirmed that Resolution 68 marks a highly transformative step. She pointed to longstanding “business conditions” that previously acted like immovable barriers, now being dismantled by the resolution.

“It’s a true breakthrough - like breaking through an ice wall,” Thuy said.

Most importantly, she emphasized, is the trust expressed by the Party and Government toward the private sector.

She explained that the FDI sector currently contributes just over 20% of GDP, and the state-owned sector about the same. Meanwhile, the domestic private sector contributes more than 50%. Given Vietnam’s GDP growth targets of 8% in 2025 and potentially double digits in the near future, the private sector’s role is pivotal.

Immediate steps needed

From a business perspective, Tu Tien Phat, CEO of ACB Bank, said companies have long been concerned about four main issues: costs, procedures, market access, and the green transition. Resolution 68 addresses these concerns, but success depends on implementation.

According to Phan Duc Hieu, institutional reform is the most cost-effective, fair, and impactful solution.

“Looking at Resolution 68, most of the solutions focus on institutional reform. If we prioritize strong reforms in this area, the effects will be profound. Institutions must lead the way to achieve results,” he emphasized.

In the long term, Hieu proposed establishing an independent Institutional Reform Agency under the Prime Minister, with authority to propose legislation and monitor enforcement.

He cited South Korea’s model, where the Ministry of Justice reviews all proposed legislation before it becomes a formal draft. If the ministry deems the proposal insufficient, it is returned for revision.

Bui Thu Thuy noted that implementation of the resolution has moved at unprecedented speed.

“In the past two months, our team has worked nearly non-stop. The National Assembly has already outlined nine solution groups with clearly defined actions for immediate application. The action plan includes around 50 tasks, most of which will be completed in 2025,” she said.

Though the resolution sets a vision through 2045, the core tasks are concentrated in the next two years to ensure that “institutions lead the way.” The 2026–2030 period will focus on unlocking and maximizing private sector resources, targeting growth of 8–10%. Any delays in reforming institutions until 2029 would jeopardize these goals.

“The government’s resolution is expected to be issued in May - possibly as early as next week,” she added.

Nguyen Le