General Secretary Nguyen Phu Trong’s Imprints in Three important Economic Resolutions

As the top leader of the nation over the past thirteen years, General Secretary Nguyen Phu Trong has profoundly shaped the course of national economic development.

General Secretary Nguyen Phu Trong delivered a keynote address at the VCCI headquarters in 2011, focusing on Resolution 09-NQ/TW of the Politburo, which aims to enhance the role of Vietnamese entrepreneurs in the period of accelerated industrialization, modernization, and international integration

The three resolutions on private economic development, foreign investment selection, and the nurturing of Vietnamese entrepreneurs in the new era exemplify the Party's visionary leadership and strategic guidance in steering the country's recent developmental trajectory.

Notably, the profound influence of General Secretary Nguyen Phu Trong, who personally endorsed the three resolutions on behalf of the Politburo and the Party Central Executive Committee, remains remarkably discernible.

Making the private economy a key driving force

In response to national development requirements, after the 5th Central Meeting of the 12th Party Central Committee, General Secretary Nguyen Phu Trong, on behalf of the Party Central Committee, signed and issued Resolution 10-NQ/TW dated June 3, 2017 on developing the private economy into an important driving force of the socialist-oriented market economy.

Resolution 10 heralded a transformative era for the private economy, affirming clearly: "The private sector constitutes an important force of economic development. Alongside the state economy and collective economy, it forms the bedrock of self-sustaining economic development. Encouraged and supported for rapid, sustainable growth, the private economy is poised to expand robustly in output, scale, quality, and its significant contribution to GDP."

In Resolution 10, the Party also set specific goals for advancing the private economic sector, emphasizing enhancements in quality and performance. It articulated targets to achieve a minimum of 1 million businesses by 2020, surpassing 1.5 million by 2025, and aiming for no less than 2 million by 2030.

The private economy in Vietnam is outpacing overall economic growth. Vietnam aims to significantly elevate the contribution of the private sector to GDP, targeting approximately 50% by 2020, around 55% by 2025, and potentially reaching 60-65% by 2030.

In fostering the advancement of the private economic sector, the Party has set forth many initiatives aimed at cultivating a conducive investment and business environment for private economic development. Emphasis has been placed on refining frameworks and policies to attract private investment, thereby ensuring the dynamic operation of a market-oriented private economy.

It has fully institutionalized and ensured strict implementation of the right to freedom of business, property ownership, civil rights and obligations of organizations and individuals according to the law.

The Party has implemented mechanisms and policies to catalyze the establishment of private enterprises, streamline regulatory requirements in strategic business sectors, and actively encourage private investment and expansion into industries and fields aligned with evolving socioeconomic development strategies.

The Party has actively incentivized and supported business households in scaling up their operations, enhancing their efficiency, and transitioning voluntarily to cooperative organizations or corporate structures. This effort includes implementing policies that provide first years of corporate income tax exemptions or reductions, as well as favorable terms for land rents.

By mid-2023, the country had more than 800,000 active companies and about 7 million entrepreneurs. The private economy is contributing nearly 45% to the country's GDP, a third of fiscal revenue, over 40% of total social investment capital, and 85% of the workforce. The private economy plays an important role in international trade, accounting for 35% of total import value and 25% of total export value.

General Secretary Nguyen Phu Trong meets with the Vietnam Young Entrepreneurs Association delegation and outstanding entrepreneurs 

Fostering a nationalist entrepreneur force serves as the cornerstone of economic development

To develop an independent and self-reliant economy, right in the first year of his first term as the top Party leader, General Secretary Nguyen Phu Trong, representing the 11th Politburo, enacted Resolution 09-NQ/TW on December 9, 2011, fostering and elevating the role of the Vietnamese business community during the period of accelerated industrialization, modernization, and international integration.

Continuing this spirit, 12 years later, the Politburo, under his leadership, promulgated Resolution 41-NQ/TW dated October 10, 2023 on building and promoting the role of the Vietnamese business community in the new period. This resolution features very new, very strong perspectives on Vietnam's entrepreneur force development.

In Resolution 41, the business community is affirmed for the first time as "one of the core driving forces essential to advancing national industrialization, modernization, and international integration, as well as for constructing and fortifying an independent, self-sustaining economy while safeguarding national defense and security."

The Party assigned the task of creating an enabling, safe and equal investment and business environment for entrepreneurs and enterprises to develop and make contributions. This was the first time that the “safety and equality” factors were included into the task of building a business environment, which was exceptionally welcomed by businesspeople. Specially, the adoption of the "supplementing appropriate economic sanctions to handle violations, not criminalizing economic relations" approach demonstrates the sharp vision of General Secretary Trong and the Politburo in aligning with the practical needs and aspirations of entrepreneurs and businesses.

Resolution 41 requires “"establishing a strategy for nurturing national, sectoral, and local entrepreneurs aligned with overarching goals and targets up to 2030, with a vision to 2045” and, at the same time, “having a breakthrough policy on nationalist business construction and development”. These are very new, very strong orientations and solutions, consistent with the Party's goal of building a Vietnamese entrepreneur force with sufficient scale, capacity and qualifications to meet the country’s industrialization and modernization goals by 2030.

Vietnam is steadfastly advancing toward cultivating regional and global enterprises that spearhead pivotal industries, assuming significant positions within global supply chains and value networks. This initiative aims to establish leadership in key industrial and agricultural value chains, ensuring international competitiveness across essential, prioritized, and cutting-edge sectors.

Following the proclamation of Resolution 41-NQ/TW by the Party, the Government enacted Resolution 66/NQ-CP, unveiling an action program. By 2030, Vietnam aims to foster a thriving entrepreneurial landscape, targeting at least 2 million enterprises. This includes cultivating 70 companies with a capitalization exceeding US$1 billion each, 120 enterprises with net revenues surpassing US$1 billion annually, and 100 companies achieving pre-tax profits exceeding US$100 million. Additionally, the plan sets sights on nurturing 10 billionaires and positioning five influential entrepreneurs on the global stage. The private sector is poised to elevate its contribution to 65-70% of the nation's GDP, marking a pivotal stride toward economic dynamism and global competitiveness.

By 2024, Vietnam will have six billionaires on the global wealth ranking list who own private conglomerates engaged in various industries like real estate, automobile manufacturing and assembly, aviation business, steel production, banking, mining and retailing.

In addition, according to a report by the consulting firm Henley & Partners in conjunction with New World Wealth, Vietnam currently has about 19,400 millionaires with a net worth of over US$1 million and nearly 58 millionaires with a net worth of over US$100 million. In 2013-2023, the number of millionaires in Vietnam increased by 98%, or nearly double. This rate surpassed that of China (92%), India (65%) and the US (62%).

The growth of Vietnam's private sector along with the boom of successful entrepreneurs from 2011 to present has proved the right orientation of the Party, led by General Secretary Nguyen Phu Trong, in supporting and opening up development space for the private economy - a wealthy, strong, independent and self-reliant economy.

The Central Commission for Communication and Education in collaboration with the Central Economic Commission and the Vietnam Chamber of Commerce and Industry (VCCI), organized a conference on May 10, 2024, to thoroughly comprehend and implement Resolution 41-NQ/TW of the Politburo on advancing the role of Vietnamese entrepreneurs in the new era

Selective FDI investment

FDI attraction successes in recent years have demonstrated the very clear policy of the Party, led by General Secretary Trong, in shaping a selective FDI investment approach.

In 2017 and 2018, Vietnam witnessed record-high registered FDI inflows of US$35.88 billion and US$35.46 billion respectively, accompanied by emerging challenges such as outdated technology and environmental concerns. Addressing these pivotal issues, on August 20, 2019, General Secretary Nguyen Phu Trong, representing the Politburo, issued Resolution 50-NQ/TW. This resolution charts a course aimed at refining institutional frameworks and policies, thereby enhancing the efficiency of foreign investment cooperation through 2030.

Resolution 50-NQ/TW marks a strategic paradigm shift in Vietnam's approach to FDI attraction, prioritizing selective and quality-driven foreign investment cooperation. Emphasizing criteria such as technological advancement, efficiency, environmental stewardship, and high added value, the resolution prioritizes projects featuring advanced, new, and clean technologies, alongside modern management practices. Special attention is directed toward initiatives that integrate seamlessly into global production and supply chains, ensuring robust ripple effects throughout the economy.

Moreover, the Party also sees the FDI sector as an important component of the Vietnamese economy, encourages and facilitates its long-term development, cooperation and healthy competition with other economic sectors. The State respects and protects legitimate and legal rights and interests of investors; ensures harmonized interests of the State, investors and employees.

This is the foundation for a series of tech giants to invest in Vietnam and gradually form a domestic semiconductor industrial ecosystem. The foreign-invested sector is playing a growing role in the Vietnamese economy and foreign investment is an important driving force for the country's economic growth.

Apparently, the important growth drivers of Vietnam's economy today such as exports, FDI and domestic private development from 2011 to present has shown the Party's right orientations for national development, including the vital leadership of General Secretary Nguyen Phu Trong.

Under the guidance of the Party, Vietnam's economy has consistently achieved strong growth rates in recent years, culminating in a GDP exceeding US$435 billion by early 2024, propelling the nation to the 35th position globally. Vietnam has emerged as a magnet for investments from premier technology corporations worldwide, elevating its stature on the international stage. As General Secretary Trong repeatedly stated, "Our nation has never before possessed such foundations, potential, positioning, and international prestige as it does today."

Vietnamese business leaders will forever cherish the dedicated support of General Secretary Nguyen Phu Trong. At the outset of his tenure, General Secretary Trong personally signed and enacted Resolution 09 on December 9, 2011, emphasizing the role of Vietnamese entrepreneurs. Subsequently, on December 17, 2011, he visited the Vietnam Chamber of Commerce and Industry (VCCI), where he engaged directly with entrepreneurs nationwide, affirming their importance and directly conveying the significance of Resolution 09.

Regarding Resolution 41, I vividly recall the Politburo meeting convened on August 18, 2023, where General Secretary Nguyen Phu Trong urged its completion ahead of Vietnam Entrepreneurs Day to inspire and motivate entrepreneurs. As the meeting drew to a close, I seized the opportunity to extend a bold invitation for him to attend a national business gathering on the Vietnam Entrepreneurs Day. To my utmost delight and admiration, I received his gracious response, "If invited, I will attend," despite his demanding schedule.

The national business meeting organized by VCCI in Hanoi on the morning of October 11, 2023, resonated deeply with entrepreneurs and business associations. Despite his inability to attend due to unavoidable circumstances, the deep affection and concern of General Secretary Nguyen Phu Trong were vividly felt. The attendees were surprised to receive two significant tokens: a congratulatory flower basket and the newly issued Resolution 41, signed less than 24 hours before the event commenced. Although he has passed away, his enduring memory, heartfelt affection, warm guidance, and indelible impact will forever be cherished by the Vietnamese business community.

Pham Tan Cong, VCCI President

Source: Vietnam Business Forum