The role of the private economy in the Era of National development: Lessons from China’s Experience for Vietnam

Abstract

Developing the private economy is a strategic policy of the Party and the State of Vietnam, aimed at fully leveraging this sector's potential to foster economic growth, enhance national competitiveness, and contribute to the country’s industrialization and modernization. Over the course of implementing this policy, the private economy has experienced continuous expansion, affirming its role as a key driver of economic development. The article employs a synthesis and analysis method of research topics and secondary reports to examine China's experience in supporting its private economy, outlining the private economy's development trajectory over 40 years of reform, highlighting its practical contributions to GDP, state budget, social investment, and job creation for millions of workers. Based on these insights, it proposes key solutions to further enhance the sector's role amidst international integration and the Fourth Industrial Revolution. These solutions include perfecting institutions, prioritizing the development of large private economic groups, promoting entrepreneurship and innovation, strengthening administrative reform, unleashing resources, and establishing a comprehensive support policy system.