Unlocking private enterprises’ growth – Article 1: Vital role

Key driver of economy

Hai Duong province recorded 11,731 private enterprises established between 2018 and 2024, growing at an average annual rate of 4.07%, reported the provincial Department of Finance.

During the period, labor productivity in the private sector increased by 6.5% each year.

Over the years, the number of newly-established businesses in Hai Duong has risen significantly. As of early 2025, the province was home to more than 21,000 enterprises, with total registered capital exceeding 240 trillion VND. This year, the province aims to increase the number of new businesses by 10% compared to 2024, equivalent to 2,200 enterprises.

The private sector is also the largest contributor to the provincial economy. In 2024, private businesses made up 72.5% of Hai Duong’s gross regional domestic product (GRDP) and 17.97% of the total provincial budget revenue. The sector also plays a vital role in job creation and motivation of economic restructuring, especially in rural and disadvantaged areas.

Hai Duong's business community has been steadily maturing, with the emergence of a new generation of entrepreneurs being dynamic, innovative, decisive, and well-equipped with knowledge to overcome challenges of international integration.

In difficult times, including natural disasters and pandemics, local businesses and entrepreneurs still made great efforts to maintain operations while also demonstrating social responsibility.

Hai Duong has achieved encouraging results in private sector development. Private enterprises continue to thrive, asserting their position as a key engine of economic growth. They have become an effective channel for mobilizing social resources for investment, contributing significantly to GDP growth, State budget revenue, job creation, livelihood improvement, social welfare assurance, and international integration promotion.

State support needed

Most private enterprises in Hai Duong are small and medium-sized ones. Challenges persist in outdated technology, uneven and low-quality human resources, and limited management capacity.

Many private businesses struggle to access essential resources, particularly in finance, credit, land, and skilled labor. These limitations hinder their ability to invest in research, innovation, and application of advanced technologies.

Multiple factors contribute to these barriers. The policy and legal framework for private sector development remains inconsistent and problematic in implementation. Provincial resources for business support are still limited. Efforts to draft and execute business support policies are often slow, fragmented, and overlapping in both target groups and support mechanisms. Administrative reform and efforts to resolve business difficulties have yet to bring about substantial changes.

Le Van Viet, Chairman of the provincial Young Businesses Association, emphasized that the private sector is a powerful driver of growth and a vital resource for the province. From a business perspective, Viet noted that recognizing and properly valuing the role of private enterprises is key to motivating their development.

“Hai Duong should adopt tailored mechanisms and policies to concretize Resolution 68 on private sector development, in ways that align with local conditions,” Viet proposed.

Moreover, he urged a shift in mindset from “supportive” rhetoric to concrete action, with strategic solutions and clear commitments, such as specifying what forms of support will be provided, committing to deadlines, or ensuring timely land handover.

Viet also recommended identifying and nurturing leading enterprises capable of guiding and supporting a broader business ecosystem in the province.

In the coming period, the implementation of the Politburo’s Resolution No. 68-NQ/TW dated May 4, 2025 on private sector development is expected to provide strong momentum and open up new opportunities for private businesses to thrive and make breakthroughs.

HUYEN TRANG