Vietnam Lawmakers Debate New Legal Framework for Private Sector

As the National Assembly convenes for its first session, discussions on socio-economic development highlight the critical role of the private sector in Vietnam's economy. Delegate Pham Trong Nhan of Ho Chi Minh City pointed out that while the private sector contributes over half of the GDP and a substantial portion of state revenue, it remains largely confined to the domestic market and lower-value segments, with foreign-invested enterprises dominating exports.

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Private sector is contributing about 51% of GDP annually, more than 30% of state budget, creating jobs for more than 82% of the labor force and nearly 60% of social investment capital.

Nhan argued that current policies, while well-intentioned, still operate under a "permission-seeking" mechanism, hindering true growth. He stressed the urgent need for a foundational law – a "Law on Ensuring the Development of the Private Economy" – to establish a stable and equal legal framework. This, he believes, is essential for private enterprises to thrive and contribute to national development, drawing parallels with South Korea's experience where a strong institutional foundation spurred economic miracles.

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The National Assembly needs to open a new chapter for the journey of progress with a foundational law for the private economy, to move from promises to institutions, from policies to legal guarantees.

This perspective, echoed by many in Vietnam's business community, emphasizes that true development comes not from preferential treatment but from a robust legal system that fosters confidence and allows private businesses to compete on a level playing field. The current administrative hurdles, as noted by delegate Hoang Minh Hieu, further complicate matters, with lengthy approval processes for projects, particularly those involving land, investment, and finance, leading to significant resource waste. The call for a new law represents a push for systemic change, moving from policy pronouncements to concrete legal guarantees that empower the private sector to drive Vietnam's future economic growth and innovation.

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There are still many cumbersome administrative procedures, causing difficulties for people and businesses; among them, inter-sectoral procedures related to land, investment, planning, and finance still have many structural problems, leading to prolonged appraisal times.