The development of the private sector as a key driver of the economy: policy orientation and practical implications

Abstract

In the context of shifting the growth model toward greater depth and deeper international integration, developing the private sector into a key driver of the economy has become an imperative for Vietnam. This article analyzes the role of the private sector within a theoretical framework of productivity-driven growth, resource allocation efficiency, and spillover effects across economic sectors. The study employs qualitative, synthetic, and comparative methods based on secondary data from policy documents, socio-economic reports, and relevant research materials. The findings indicate that the private sector has achieved significant progress in scale and participation in higher-value-added sectors. However, its role as a sustainable growth driver remains constrained by several limitations, including the enterprise size structure, labor productivity, technological capacity, access to resources, and the level of linkage with the foreign direct investment (FDI) sector. On this basis, the article proposes several policy implications, including improving institutional frameworks to promote greater transparency and accountability, fostering innovation and digital transformation, strengthening value chain linkages, and developing medium-sized enterprises.