Never before has the private sector occupied such a prominent position in Vietnam. Once viewed primarily as a supplementary component of the economy, the private sector is now identified as “one most important driver of the national economy” and is expected to become a pioneering force in science-technology, innovation and digital transformation.

The Politburo's Resolution 68 emerged against this backdrop, opening the way for a major shift in roles. But this new status also poses a more difficult question for Vietnamese entrepreneurs: with a broader scope for development, a changing institutional framework and access to increasingly larger playing fields, are Vietnamese businesses capable of stepping up?

If one image were needed to describe the institutional changes since late 2024, it would probably be a vast construction site. The administrative apparatus has been reorganized, the country has moved from 63 to 34 provinces and cities, and a two-tier local government model has been implemented.

At the central level, The Politburo's Resolution 57 on science-technology, innovation and digital transformation; Resolution 59 on international integration; Resolution 66 on lawmaking and law enforcement; and Resolution 68 on private-sector development have been brought together into a framework that Party leaders call the “four pillars”.

These changes converge on one point: creating new room for businesses and entrepreneurs to grow.

From managing to enabling businesses

What stands out first about Resolution 68 is its approach to the private sector. With more than 940,000 businesses and over 5 million household businesses, the sector currently contributes around 50% of GDP, more than 30% of total state budget revenue and employs about 82% of the workforce. By 2030, the target is to have around 2 million businesses, with the private sector contributing 55-58% of GDP and at least 20 large enterprises participating in global value chains.

Policy is consequently beginning to change in more concrete ways. Research and development is one example. Under the National Assembly's Resolution 198/2025/QH15, businesses can deduct research and development expenses at 200% of their actual costs when calculating taxable income. They may also allocate up to 20% of taxable corporate income to funds for developing science-technology, innovation and digital transformation.

For businesses working in semiconductors, artificial intelligence, advanced materials or biotechnology, this represents a significant change. The risks of research remain with businesses, but the state is beginning to share part of the cost of experimentation, a process that always carries the possibility of failure.

Another shift concerns the regulatory approach. Resolution 198 calls for a decisive move from pre-inspection to post-inspection, replacing licensing and certification requirements with declarations of compliance and subsequent inspections in most sectors. In 2026, this requirement is being further translated into measures to cut and simplify administrative procedures and business conditions.

At the local level, the 2025 Provincial Competitiveness Index (PCI) was published for the first time under the PCI 2.0 model following changes to administrative boundaries. Instead of the previous ranking race from first to 63rd place, the 34 provinces and cities were grouped according to the quality of their governance. Bac Ninh, Danang, Hai Phong, Phu Tho and Quang Ninh were placed in the “Good” group.

The new assessment method also reflects a shift in thinking: businesses need a stable environment across multiple dimensions - from access to resources and transparency to compliance costs and legal institutions - rather than a handful of isolated incentives.

This is the foundation of the “new opportunities”. They are becoming increasingly evident in sectors where Vietnamese private businesses previously had limited ability to establish a significant presence.

Infrastructure is one example. Private companies are increasingly involved in large-scale transport projects, from expressways and airports to urban infrastructure. For businesses, entering a national project means moving beyond construction capabilities to managing capital, technology, timelines, safety and responsibility throughout the project's lifecycle.

Hoa Phat is investing more than VND10 trillion ($385.7 million) in a rail and special steel manufacturing plant in Dung Quat (Quang Ngai province), targeting its first high-speed railway rail products in the first quarter of 2027. This is a notable example of Vietnamese businesses shifting from relying on economies of scale to meeting higher industrial standards.

Similar developments are beginning to emerge in core technologies. In early 2026, FPT announced the establishment of an advanced semiconductor chip testing and packaging plant in Bac Ninh city, while continuing to expand its AI Factory infrastructure powered by Nvidia. Viettel has independently designed a 5G digital front-end (DFE) chip and developed a 5G equipment ecosystem. These moves show Vietnamese businesses seeking to advance further into higher-value segments of the technology chain.

New markets are also taking shape rapidly. In 2025, Vietnam's e-commerce market reached around $31 billion, up 25.5%. The target for 2026-2030 is to maintain annual e-commerce retail sales growth of around 20-30%. Alongside the digital economy, carbon markets, green technology, data and new business models supported by controlled regulatory sandboxes are also gaining momentum.

A new garment is being tailored for the private sector. But a larger garment also requires a stronger body.

The doors are open, but bottlenecks remain

At a conference in Ho Chi Minh City in September 2026 to gather feedback on a draft law on small and medium-sized enterprise development, one reality was highlighted: small and medium-sized enterprises account for around 98% of all businesses but only around 20-25% of the economy's total outstanding credit.

This gap cannot be explained simply by banks' reluctance to lend. A significant proportion of businesses still operate as family-run enterprises; business finances and owners' personal finances have not been separated; financial statements lack reliability; risk management is weak; and collateral is limited. When businesses lack transparency, long-term capital is difficult to attract, regardless of how many additional support policies the financial system offers.

The second bottleneck lies in the capacity to participate in value chains. The foreign-invested sector currently contributes more than 20% of GDP and around 70% of export turnover. In the first half of 2026 alone, it accounted for 79.9% of exports, while domestic businesses accounted for just 20.1%.

Behind Vietnam's enormous export figures, therefore, lies a question about how much value Vietnamese businesses retain. A product may be assembled in Vietnam and exported from Vietnam, while its core components, design, technology, brand and distribution network remain elsewhere. The gap between “made in Vietnam” and “value created by Vietnam” remains considerable.

The 2025 PCI introduced the Business Performance Index (BPI) into its assessment system for the first time. The country's median BPI score was only 4.2 out of 10, while the median innovation score was around 4.17. Ho Chi Minh City scored 6.15 for innovation, Hanoi 5.98, while Lam Dong scored just 2.18. The wide disparities between localities show that the private sector's endogenous capabilities remain unevenly developed.

Policy opportunities, therefore, will not automatically translate into business capabilities.

The new mission begins with businesses growing stronger

When Resolution 68 is discussed, much of the focus is on land, credit, administrative procedures, taxes and incentives for innovation. But there is another, less comfortable side to the story: businesses must also change themselves.

The first requirement is better governance. A business seeking large-scale financing, a stock market listing, international capital or participation in projects worth tens of trillions of dong (VND10 trillion = VND385.7 million) cannot continue to operate like an oversized family shop.

Transparent financial statements, independent audits, risk management systems, professional management teams and mechanisms to oversee the exercise of power within companies will increasingly become prerequisites for long-term growth, rather than merely “good standards” reserved for a handful of large corporations.

The second is technology and productivity. The 200% deduction for R&D expenses will only be meaningful if businesses are willing to spend money on research and development. Science and technology funds will create value only when used to develop new products, processes and technologies.

In an economy where the advantage of cheap labor is steadily diminishing, productivity must become a new source of profit. This means moving from contract manufacturing to design, from output volumes to standards, and from selling products to owning technology and brands.

The ST25 rice story offers an illustration. The variety has been named the “World's Best Rice” three times, in 2019, 2023 and 2025. Behind these accolades lie more than three decades of breeding research by engineer Ho Quang Cua and his colleagues. Brand value is ultimately built on science, quality and perseverance, not advertising alone.

Trung Nguyen Legend offers another example. In August 2026, it continued opening Trung Nguyen E-Coffee outlets in Frisco and Garland, Texas. This represents a different approach: taking products overseas together with the story of Vietnamese coffee culture, rather than simply exporting raw materials.

Vietnamese entrepreneurs in this new era must still generate profits. Without profits, businesses cannot survive. But the expectations for a new generation of businesses have grown beyond creating substantial wealth for their founders.

They must also build Vietnamese companies capable of participating in major national projects; gain control of more critical links in technology value chains; integrate domestic businesses more deeply into global supply chains; and create brands whose Vietnamese value is embodied in their products, rather than stopping at the location of their factories.

Resolution 68 sets a target of having at least 20 large enterprises participate in global value chains by 2030. This will be difficult to achieve if millions of businesses remain content with familiar markets, outdated management practices and profits derived from short-term advantages.

The new opportunities are therefore also a test. Institutions must continue to change to safeguard the freedom to do business, ensure equal access to resources, reduce unofficial costs and give businesses that deliver real results the opportunity to grow.

For entrepreneurs, the requirements have also changed. They must become more transparent to attract larger capital flows. They must invest in technology to move into higher-value segments. They must think about global markets from the outset when developing products. More importantly, they must build businesses capable of surviving and thriving across generations rather than depending on a single individual.