In early 2000, the Enterprise Law came into effect, marking a turning point in the country’s economic landscape. The private economy was “unleashed” under a new mindset with a more open and equal mechanism. As a result, human and financial resources within the population have been unlocked, and the private sector has increasingly contributed to local economic development.

A gradual shift in perceptions of the private sector

For years after national reunification, many people had capital but were hesitant to invest in production or business. Instead, they bought gold or simply stored their money at home. Meanwhile, production lacked capital, and the demand for goods remained high, but the supply from the subsidised state-owned sector was unable to meet this demand. For many, private business was seen as taboo, burdened by stigma, even though the sector continued to exist and contributed not insignificantly to economic development.

An elderly artisan from Phu Gia’s traditional horse hat-making village (Binh Dinh) shared: “Back then, when people talked about private business, it was often associated with self-interest. People hesitated to expand production for fear of attracting unwanted attention. It took us many years to prove our products were not only good but carried genuine economic and cultural value before we were accepted.” At the time, state-owned enterprises in Binh Dinh dominated key sectors such as processing industries, infrastructure construction, and goods distribution. This left private businesses, still young and under-resourced, struggling to find a foothold in the market. “We lacked not only capital but also production land, so competition was extremely difficult,” said Nguyen Van Linh, the owner of a wood processing workshop in Quy Nhon City.

As in many other provinces, the private sector in Quang Ngai once developed cautiously and slowly. According to many private business leaders in the province, this was primarily due to years of centralised, subsidy-era thinking that placed the state economy at the core, resulting in policies and resource allocations that did not truly favour private enterprise. As a result, private firms found it difficult to compete for capital, land, and investment opportunities with state-owned enterprises or foreign direct investment (FDI) businesses. Specifically, administrative procedures remained cumbersome and complex, discouraging small and micro businesses from engaging, and while support policies for the private sector existed, they were often ineffective and difficult to access.

It was not until 1986, over a decade after reunification, that the Sixth National Congress of the Communist Party of Viet Nam began to untie the “invisible rope” constraining the private economy. By early 2000, with the implementation of the Enterprise Law, the economic landscape shifted dramatically, and the private sector began to thrive.

Since 2001, many private businesses in Khanh Hoa Province reached export revenues of over 10 million USD annually. Several large firms also emerged, contributing more than 1 billion VND per year to the state budget, including Nha Trang Seafood Co., Ltd. and TQT Electronics Private Enterprise.

Significant contributions to economic growth

Quang Ngai currently has nearly 6,700 private enterprises in operation, contributing around 20 trillion VND annually to the state budget, accounting for over 83.4% of the province’s total domestic revenue, while providing jobs for more than 173,000 workers. According to Nguyen Anh Nam, Deputy Director of the Quang Ngai Department of Finance, the province’s businesses and entrepreneurs are growing both in quantity and quality, demonstrating strategic acumen, dynamism, adaptability, and responsiveness to the integrating business environment. As a result, the private sector has made significant contributions to the province's overall economic growth.

As one of the leading private enterprises in Binh Dinh, Phu Tai Joint Stock Company has made a strong mark in the fields of wood and granite processing as well as real estate, affirming its position both domestically and internationally. In 2024, Phu Tai Group recorded revenue of over 6 trillion VND, with exports to more than 30 countries. Its expansion into international markets has enhanced competitiveness and significantly boosted the province's export figures.

Mention must also be made of Quang Ngai Sugar Joint Stock Company in the private sector landscape of Quang Ngai. With its two main products, sugar and ethanol, the company has seen remarkable growth in both scale and depth since June 2006, when its equitisation and official operations began. It has become a leading enterprise in the province’s private economy. In 2024, the company achieved revenue of 10.678 trillion VND, up 2%, and pre-tax profit of 2.645 trillion VND, up 8% from 2023. It contributed over 1 trillion VND to the state budget.

“The turning point in our company’s development came when we transitioned to operating as a private enterprise. By reforming our management model and maximising democratic participation, as well as encouraging innovation among staff and workers, we were able to boost productivity and increase profits,” shared Vo Thanh Dang, General Director of Quang Ngai Sugar Company.

In Quang Nam Province, one of the standout examples of private sector investment and development is Truong Hai Group (THACO). Over more than 27 years of growth, THACO has become a diversified industrial conglomerate, investing in key sectors of the national economy, including automobiles, agriculture, mechanical engineering and supporting industries, construction, commerce and services, and logistics. According to Chairman Tran Ba Duong, THACO Chu Lai currently spans over 1,300 hectares with total investment exceeding 4.2 billion USD. In 2024, THACO Chu Lai contributed over 19.3 trillion VND to Quang Nam’s state budget and created employment for more than 15,000 local workers.

Luong Nguyen Minh Triet, Secretary of the Quang Nam Provincial Party Committee, believes that THACO’s business success plays a major role in the province’s development. In its growth journey, THACO has not only contributed substantially to the local budget but also created tens of thousands of jobs for the local residents. He expressed hope that THACO will continue to lead, connect, and enable small and medium-sized enterprises to join value chains and build a sustainable business ecosystem in Chu Lai. Quang Nam, he said, is committed to always supporting and creating the most favourable conditions for private businesses to invest, produce, and grow.

From a broader social perspective, the current high employment capacity of the private sector plays a crucial role in addressing job creation and shifting public attitudes. It helps change the mindset of those who previously preferred securing employment in state agencies above all else.