Dau Anh Tuan, deputy secretary general of the Vietnam Federation of Commerce and Industry (VCCI), speaks at the conference "40 years of reform: The leading role of economic groups" hosted by The Investor in Hanoi on April 13, 2026. Photo by The Investor.

If one looks only at macroeconomic statistics, an important reality may be overlooked: In less than three decades, Vietnam’s private sector has produced enterprises whose scale and stature far exceed initial expectations. This is not the result of luck or special policy privileges, but rather the product of determination, capability, and the entrepreneurial spirit of a generation of Vietnamese business leaders.

Among the Top 500 largest enterprises in Vietnam, the number of private firms increased from 263 in 2016 to 315 in 2023. According to the Fortune Southeast Asia 500, Vietnam has 76 companies in the regional top 500.

In manufacturing, Truong Hai Auto Corporation (Thaco) has built one of Southeast Asia’s largest mechanical and automotive production ecosystems in Quang Nam. From a small trading firm, Thaco has developed its own production and assembly capabilities, gradually increasing localization and becoming a strategic partner to many global automakers.

VinFast stands out as a particularly notable case, becoming Vietnam’s first electric vehicle manufacturer, building a large-scale factory in Hai Phong, listing on the Nasdaq, and expanding sales into North America, Europe, and Southeast Asia. While many challenges remain, the very fact that a Vietnamese private company has entered the global automotive industry - one of the most difficult industries to penetrate - represents a strong statement of ambition and capability.

Hoa Phat has grown from a small furniture workshop into one of Southeast Asia’s leading steel producers, with millions of tons of annual output and direct competition with international steel groups in export markets.

In technology, FPT has become one of the region’s leading IT companies, operating in dozens of countries and providing digital transformation services to multinational corporations. Its overseas revenues have grown steadily and now account for an increasing share of total revenue. FPT is also among Vietnam’s private firms investing most heavily in R&D, particularly in artificial intelligence and semiconductors.

In consumer goods, Vinamilk has built a Vietnamese dairy brand present in more than 50 countries, with internationally standardized farms and factories. Masan has developed a consumer ecosystem spanning food, beverages, and retail, serving tens of millions of consumers daily. These companies demonstrate that Vietnamese private enterprises are fully capable of building nationally recognized brands with regional competitiveness.

In infrastructure and real estate, Vingroup has undertaken projects on an unprecedented scale in Vietnam’s private sector history - from urban developments to hospitals, schools, and electric vehicle manufacturing - setting new benchmarks for ambition and scale. Sun Group, BRG, and other conglomerates have invested billions of dollars in tourism infrastructure, resorts, and airports, transforming the economic landscape of many regions.

In terms of adaptability, the private sector has demonstrated remarkable resilience in the face of shocks. During the Covid-19 pandemic, when global supply chains were disrupted, many private firms quickly adjusted markets, products, and business models. Some shifted to producing medical equipment, masks, and pandemic supplies within weeks. This rapid responsiveness is an advantage that state-owned or FDI enterprises often struggle to match.

In terms of social contribution, large private conglomerates have increasingly engaged in social welfare, education, healthcare, and community development. Many have established charitable foundations, funded scholarships, and built schools and hospitals in disadvantaged areas. This reflects not only corporate social responsibility but also the growing maturity of Vietnamese entrepreneurs, who increasingly link business success with societal contribution.

Perhaps most noteworthy is the commitment of a generation of entrepreneurs who built their businesses from scratch in an incomplete institutional environment, facing numerous administrative barriers and social biases. They have overcome not only constraints in capital, technology, and markets, but also decades-long skepticism toward the private sector. This perseverance and resilience are among the most valuable assets generated by nearly 40 years of Doi moi (reform).

The proportion of firms maintaining their positions in top rankings has been rising over time. A new generation of entrepreneurs, formally trained in advanced economies, is gradually taking over and elevating what their predecessors built. This is perhaps the most important foundation for believing that Vietnam’s private conglomerates can assume a leading role in the next stage of development.

Persistent paradoxes

However, if we place Vietnam's private sector in the context of the region and the world, a clear paradox emerges: numerous but not yet strong, dynamic but not yet profound, making significant contributions but maintaining a modest position in the global value chain.

Severe sectoral imbalance

According to VPE500 data, more than half of the total revenue of the largest private enterprises comes from finance and real estate, while manufacturing accounts for less than 10%. This imbalance reflects a tendency toward short-term, asset-based investment rather than long-term commitment to production and technological innovation.

Small scale and fragmentation

Nearly 97% of private enterprises are SMEs, with about 70% employing fewer than 10 workers. Additionally, there are around 5 million household businesses. Such small scale limits the ability to invest in technology upgrading. The share of Vietnamese firms participating in global value chains declined from 35% in 2009 to just 18% in 2023.

Low labor productivity

Productivity in the non-state sector remains significantly lower than in the state and FDI sectors, with the gap widening over time. This largely reflects the fragmented, informal, and underdeveloped structure of private enterprises.

Limited long-term capability accumulation

Investment in R&D remains modest. Vietnam’s R&D spending is around 0.67% of GDP, with private firms accounting for about 44% of total expenditure. Many firms still operate under family-based models, lacking transparency and professional governance.

Orientation and vision: What do Vietnamese private conglomerates need to lead?

Vietnam is entering a transformative stage. The goal of becoming a high-income country by 2045 requires a new growth model based on productivity, quality, efficiency, and driven by science-technology, innovation, and digital transformation. Within this transition, private economic groups must take on a leading role - not merely participating in growth, but driving it.

Shift from real estate and finance to manufacturing and technology

This is both the greatest challenge and the most urgent requirement. A clear and consistent industrial strategy is needed, identifying priority sectors and supporting them through tax incentives, long-term credit, R&D support, and specialized infrastructure.

Increase investment in R&D and innovation

Vietnam aims to raise R&D spending to 2% of GDP by 2030 - a significant challenge given the current level of 0.67%. The State should promote joint research initiatives involving large enterprises and introduce tax incentives to encourage private R&D investment.

Build linkages between large firms and SMEs

Rather than operating in isolation, large conglomerates should lead and support the development of domestic supply chains, transferring technology and managerial know-how to smaller firms. No modern industrial system can function without strong linkages across enterprise tiers.

Develop deep capital markets

A transparent and well-developed capital market, with participation from domestic and international institutional investors, is essential for mobilizing long-term funding. Without patient capital and risk-tolerant financing, firms cannot invest in core technologies.

Enhance governance and professionalization

Many private firms need to transition from family-based management to professional governance, separating ownership and management while adopting transparency, risk management, and ESG standards.

Internationalization strategy

Vietnam needs a dedicated institution to support private enterprises in expanding into global markets. Without strategic support and a robust internationalization ecosystem, even capable firms are likely to remain confined to the domestic market.

The Investor is organizing a conference titled “40 years of reform: The leading role of economic groups” in Hanoi (Monday, April 13).

The conference is aimed at providing a forum for policymakers, experts and the business community to review the 40-year reform journey, assess the leading role of economic groups, and propose policies to further develop them.

It brings together representatives from ministries, agencies, and associations, along with economic, financial and legal experts, and leaders of commercial banks, economic groups and domestic enterprises.