"The private sector is a major job creator in Vietnam, contributing 40 percent to the national GDP," Vu Tien Loc, president of Vietnam Chamber of Commerce and Industry (VCCI), said at the forum on Thursday.

On behalf of enterprises, the VCCI’s president offered solutions to promote the private sector's contribution to the national economy.

"Firstly, while state-owned enterprises play a leading role in some areas, the private sector needs to be the backbone of Vietnam’s economy."

He also stressed the fundamental importance of institutional reforms that are focused on supporting and facilitating private businesses.

Noting that 30 percent of GDP was contributed by individual business households, Loc proposed that the Law on Enterprises is revised to promote further growth in that area.

He said two things that have to happen in tandem are simplification of administrative procedures and establishment of a complete legal framework. "The legislative framework should catch up with the trend of the digital economy."

Vu Tien Loc, president of VCCI, speaks at the forum.

Furthermore, enterprise associations should be allowed to take the initiative to make legislative recommendations, he noted.

Loc also recommended that more be done to promote not just the number of enteprises, but also their quality.

"Socialization of public services and public-private partnerships should be promoted. Enterprises should play a role in projects of national significance."

Legislative reforms should ensure greater fairness and transparency, particularly in resolving business disputes, he said.

He stressed that private sector development cannot be separated from state-enterprises restructuring and policies to attract FDI firms.

Lastly, the VCCI head said that more effective policies were needed to boost startups, small and medium enterprises (SMEs) and large-scale enterprises as well as private economic groups, which are crucial elements of value chains, contributing to labor productivity and global integration.