Private Sector Development is a Measure of Bureaucratic Capacity

Vietnam's private economic sector is emerging as a critical engine for national growth, bolstered by the implementation of Politburo Resolution 68. This resolution has significantly enhanced the perception and role of the private sector within the political and social landscape. Over the past year, the resolution has demonstrably fostered a more dynamic business environment, evidenced by a surge in new business registrations and the return of dormant enterprises to the market. From May to December 2025, approximately 18,000 new businesses were established monthly, with over 8,300 existing businesses reactivating each month. This momentum has continued into the first four months of 2026, with nearly 75,000 new businesses created and over 48,000 businesses resuming operations, marking a 36.7% increase in market entries. The total registered capital injected into the private sector in 2025 reached nearly 6.4 trillion Vietnamese dong, a 77.8% increase year-on-year. Resolution 68 has not only revitalized business confidence but also played a crucial role in the stock market's recovery and growth. The market capitalization reached a record high of approximately 10.5 million billion Vietnamese dong by the end of April 2026, equivalent to about 82% of the 2025 GDP. Furthermore, the private sector's resurgence positively impacts state revenue, with a 15.2% increase in total budget revenue recorded in the first four months of 2026. The resolution also encourages private corporations to invest in strategic national infrastructure, reshaping the private sector's structure and increasing its contribution to Vietnam's long-term sustainable development objectives.