Developing the private economy as an economic pillar

Identifying the private economic sector (SES) as one of the important driving forces for economic growth, job creation, and increased budget revenue, the province has been implementing many synchronous solutions to support private enterprises, gradually removing bottlenecks and creating a favorable business environment.

The private sector contributes increasingly to the economy

With numerous incentive policies and mechanisms, the private economic sector in the province has developed strongly in recent years, participating more and more deeply in production and business activities across various fields such as agriculture, industry, transportation, trade, services, construction, and the processing of agricultural, forestry, and fishery products. In fact, the SES has continuously expanded in scale, diversified in types, and improved in both quantity and quality, with private enterprises in the industrial and construction sectors playing a role as key engines of the economy.

The province currently has nearly 11,000 private enterprises and establishments operating, accounting for more than 95% of the total number of operational enterprises. Of these, the former Vinh Phuc province accounts for over 8,000 active private enterprises. The private economic sector has increasingly contributed to the provincial economy, creating hundreds of thousands of jobs, especially in industrial production, services, and trade. This sector has been making strong contributions to the overall development of the local economy, helping to create stable jobs for hundreds of thousands of workers both within and outside the province, contributing significantly to the annual state budget revenue, and pioneering technological innovation to improve local competitiveness. In the private economic sector of the former Vinh Phuc province during the 2017–2023 period, its contribution to the state budget grew strongly, from VND 1,190 billion (accounting for 3.96%) in 2017 to over VND 1,700 billion (accounting for 5.62%) in 2023. The number of employees working in the private economic sector has increased significantly, from nearly 191,000 employees in 2017 to nearly 220,000 employees in 2024, an average increase of nearly 4,000 employees per year. The private economic sector has propelled the average Gross Regional Domestic Product (GRDP) growth rate of Phu Tho province after the merger to 10.09%. Specifically, Phu Tho’s GRDP increased by 10.33%, ranking 9th out of 63 provinces; Vinh Phuc’s increased by 10.07%, ranking 10th out of 63; and Hoa Binh’s increased by 9.72%, ranking 13th out of 63 provinces and cities. The GRDP growth rate of all three provinces is higher than the target assigned by the government in Resolution No. 25/NQ-CP.

DT Vina Automation Joint Stock Company (Yen Lac commune) invested in machinery and production equipment, improving the competitiveness of precision mechanical products and meeting the needs of many domestic and foreign partners.

Although strong, the reality shows that private enterprises in the province have not developed commensurate with their potential in terms of quantity, scale, and operational efficiency. Private enterprises are mainly small and medium-sized enterprises, accounting for more than 95%, of which micro and small enterprises make up over 70%. Most enterprises have low-to-average technological capacity, limiting innovation and the application of scientific and technological advances in production and business. The labor productivity of this sector is currently only approximately VND 100 million per worker per year, significantly lower than that of the state-owned enterprise sector (over VND 400 million) and the FDI sector (over VND 350 million per worker).

To Make the Private Economy a Pillar of the Economy

With the goal of developing the private economy into an important driving force for the province’s economic development and a pioneer in innovation, digital transformation, and international integration, the province continues to focus on effectively implementing policy mechanisms on private economic development according to Resolution No. 198/2025/QH15 dated May 17, 2025, of the National Assembly. The province proactively removes difficulties, unlocks resources, and creates favorable conditions for private enterprises to develop. Specific solutions include promoting administrative procedure reform and applying information technology in handling business registration procedures and investment licensing, thereby shortening time and costs for businesses, and focusing on solving problems related to access to land, credit, and production and business premises. Every year, investment promotion conferences, seminars, and dialogues between businesses and authorities are organized, creating a direct exchange channel to help businesses reflect on difficulties and problems for timely resolution.

Workers of Viet Huy Company Limited, Dong Van Craft Village Industrial Park, Te Lo Commune, specializing in the production of labor gloves, creating jobs for 15 workers with an income of VND 6–9 million per person per month.

The province has set ambitious targets to strive for by 2030: The average growth rate of the private economic sector is expected to be 10.5% per year or higher, exceeding the target of Resolution 68-NQ/TW dated May 4, 2025, of the Politburo on private economic development. The contribution rate of enterprises to the budget value is projected to be 50–60% of total budget revenue, contributing 62–65% of the province’s GRDP. By 2030, the whole province strives to have about 46,500 operational enterprises (20,000 in the former Vinh Phuc area, 19,000 in the former Phu Tho, and 7,500 in the former Hoa Binh) and more than 100,000 operational business households, creating jobs for 84–85% of the total workforce. Labor productivity is targeted to increase by an average of 10–11% per year, and the growth rate of budget revenue from the private economic sector is to reach more than 10% of the province’s total budget revenue.

At the scientific workshop held to collect comments on the draft document submitted to the Phu Tho Provincial Party Congress (after the merger) on the socio-economic field, with the theme “Identifying the potential and development orientation of Phu Tho province in the period 2025–2030, vision to 2050,” many economic experts and delegates pointed out that after the merger, the province needs to prioritize science and technology, innovation, digital transformation, and the private economy as the main driving forces and resources for economic growth, aiming for these to contribute 55–60% to growth by 2030. Furthermore, the contribution of the digital economy is expected to reach 30% of GRDP or more. This demonstrates that the new provincial government has great expectations for the private economic sector, which is considered the center of development.

Accordingly, the province will focus on three strategic breakthroughs: perfecting institutions, investing in developing infrastructure, and improving the quality of human resources. The provincial government will regularly receive and promptly resolve feedback, recommendations, problems, and bottlenecks that need to be removed from the private economic sector, with the spirit of creating mechanisms, giving confidence, and inspiring private economic sectors to break through, becoming a “development pillar” of the new province’s economy, and creating a spreading momentum to successfully implement socio-economic development goals in the coming period.

Xuan Hung