However, this opportunity will not translate into real strength on its own unless bottlenecks related to institutions, the business environment, access to resources and the internal capacity of enterprises are decisively resolved.

Bridging the gap between policy and implementation

At the launch ceremony for the Viet Nam Private Economic Report and the 2025 Provincial Competitiveness Index (PCI), organised by the Viet Nam Chamber of Commerce and Industry (VCCI) on May 15, VCCI Deputy Secretary-General and Head of the Legal Department Dau Anh Tuan succinctly described the private sector’s current state as “large in number but not yet strong.”

According to Tuan, private enterprises account for 96.6% of all operating businesses in Viet Nam, numbering more than one million. However, more than 80% employ fewer than 50 workers, while over 70% have registered capital of less than 10 billion VND (nearly 380,000 USD).

These figures show that most enterprises remain small in scale, have limited capital, rely heavily on family-style management practices, and lack resilience in the face of market fluctuations. As a result, even a drop in orders, a rise in costs, disrupted cash flow, or prolonged administrative procedures can seriously disrupt their production and business activities.

Notably, 60.2% of enterprises identified finding customers as their biggest challenge, the highest proportion recorded in the past five years. The figure reached 64.4% in manufacturing and 60.4% in agriculture, forestry and fisheries. Meanwhile, 75.5% of enterprises reported being unable to access bank loans without collateral.

This reflects the dual pressure bearing down on businesses: output markets remain unstable and sluggish, while access to inputs, particularly credit, remains far from smooth. Many enterprises have the ideas, orders and operational capacity needed to grow, but lack the financial resources to expand production, invest in technology, or hire additional workers.

In addition, although the government has introduced numerous policies to support business recovery and development, the gap between policy and implementation remains a major concern.

Businesses report being repeatedly asked for additional documentation, while projects are delayed due to differing interpretations among regulatory agencies. In some cases, procedures that have officially been simplified on paper still entail significant time and expense in practice.

According to VCCI Chairman Ho Sy Hung, although these obstacles may not immediately cause major disruptions, over time they gradually erect barriers that slow long-term investment decisions, production expansion and technological innovation.

At present, the government does not lack policy direction. The crucial issue is unlocking resources so that policies can take real effect. When institutions are not fully streamlined, administrative procedures remain complicated, and access to capital, land and information is still limited, even the most promising opportunities cannot easily be turned into engines of growth.

Reform is not simply about eliminating a few more procedures. It must directly address the bottlenecks businesses encounter daily, from policy implementation to access to resources and the building of long-term investment confidence.

No matter how progressive policies may be, they will struggle to deliver results if implementation is still hindered by a reluctance to take responsibility, evasion, buck-passing or rigid application. In such cases, the costs ultimately fall on citizens and businesses.

VCCI has recommended gathering more substantive feedback from enterprises and developing legal mechanisms that are easier to access, understand and implement, so as to create the most favourable possible conditions for production and business activities.

Tackling the bottlenecks

Recognising these bottlenecks, the government, at the outset of its new term, issued eight resolutions on cutting, decentralising and simplifying administrative procedures and business conditions, aimed at revising 163 legal and regulatory documents in a coordinated manner.

The goals include cutting administrative procedures by at least 30%, reducing processing times by 50%, lowering compliance costs by 50%, streamlining business conditions by 30% and eliminating all unnecessary procedures.

As a result, 184 procedures have been abolished, 134 decentralised to local authorities, and 349 simplified. In addition, 890 business conditions have been eliminated and four others simplified. At the same time, the regulatory approach has shifted decisively from “pre-inspection” to “post-inspection.”

Nguyen Duy Hung, a representative of Tan Hiep Phat Group, stated that what businesses need is not preferential treatment, but rather a fair, safe, transparent and consistently enforced business environment.

In many cases, the problem does not lie in major policies, but rather in delayed document processing, inconsistent interpretation of regulations, or even delays in minor administrative procedures, all of which can cause businesses to miss market opportunities.

Therefore, reform should not merely be measured by the number of legal documents cut or meetings held, but by time saved for businesses, reductions in costs, the removal of obstacles, and the building of confidence. Reform is only truly meaningful when enterprises can feel a real difference in every interaction with public authorities.

Experience from top-performing provinces in PCI governance shows that reform cannot remain merely a slogan. Quang Ninh Chairman Bui Van Khang noted that the province has remained among the leading localities in PCI rankings for 13 consecutive years.

However, improving the business environment is not a cyclical exercise driven by rankings, nor a competition based solely on investment incentives or production costs. More importantly, it depends on institutional quality, governance capacity, innovation and the ability to build trust among enterprises.

In this new period, as growth targets become more ambitious, competition fiercer, and innovation pressures greater, the private sector needs a truly supportive development ecosystem.

In such an environment, an enabling government must not only speak about reform, but also help enterprises reduce risks, recognise opportunities, and feel confident enough to commit to long-term investments.

It is clear that the private sector faces a major opportunity as the commitment to reform has grown more explicit and pressure for innovation continues to intensify.

After more than a year of implementing Resolution 68 on private sector development, the greatest expectation is not simply to grow the private sector in size, but to build a stronger business community, one with greater resilience, stronger ambition, and the competitiveness needed to integrate into global supply chains.

To achieve this, bottlenecks must be decisively eliminated to create leaner institutions, more predictable policies, and fairer access to resources.

Alongside government support, businesses themselves must also actively drive innovation, positioning themselves as the primary engine behind the country’s ambition of achieving double-digit economic growth in the years ahead.