UNLEASHING THE DRIVING FORCES FOR THE DEVELOPMENT OF VIETNAM’S PRIVATE ECONOMY: THEORETICAL AND PRACTICAL ISSUES TO BE CONCERNED ABOUT

Abstract

The private economy is an important component of the socialist-oriented market economy in Vietnam, playing an increasingly clear role in promoting growth, creating jobs, and mobilizing social resources for national development. However, this region has not yet reached its full potential due to the impact of institutional barriers, inconsistent policies, limited governance capacity, innovation, and the level of linkage in the value chain. Based on theoretical and practical analysis, the article focuses on clarifying the factors that constitute the "development motivation" of the private economy and proposes systematic solutions to open and consolidate these dynamics in the new period. Research shows that the driving force of the private economy stems from the combination of tectonic institutions – dynamic markets – creative people. A transparent and stable institution, ensuring the right to freedom of business, is the foundation for private enterprises to invest with confidence. In addition, a fair and competitive environment, favorable capital and land access mechanisms, along with effective support policies, will help businesses enhance their endogenous capacity. In particular, the development of a team of entrepreneurs with vision, bravery, and social responsibility, combined with the promotion of innovation and digital transformation, is a condition for the private sector to participate more deeply in the global value chain. On that basis, the article proposes the main solutions: perfecting the socialist-oriented market economy institution; improving the quality of business support policies; developing Vietnamese entrepreneurs; strengthening public-private partnership; and promoting sustainable development. These solutions are considered the foundation for the private economy to truly become the main endogenous driving force, contributing to the rapid, inclusive, and sustainable development goals of the Vietnamese economy.