Pivotal turning point arrives for nation’s private sector

Acknowledging this, the Politburo issued Resolution No.68-NQ/TW on May 4, which signals a bold shift in Vietnam’s development strategy.

Resolution 68 sets ambitious targets for 2030: reaching two million operating enterprises, increasing private sector contributions to 55–58 per cent of GDP, and integrating at least 20 major firms into global value chains. It also aims to make Vietnam one of the top three ASEAN countries for innovation and digital capabilities.

A critical pillar of the resolution is improving access to land, finance, and skilled labour - all of which are vital to attracting foreign direct investment (FDI). Financial access will be broadened through priority lending for smaller businesses, tech startups, and firms pursuing green and digital transformation.

At the same time, new policies to boost workforce training, especially in science, technology, engineering, mathematics, foreign languages, and digital skills, will help bridge the talent gap

While these measures primarily impact direct funding, they also benefit foreign indirect investment (FII) by enhancing the overall business environment. Improved financial access and workforce development contribute to the growth of companies listed on the stock market, making Vietnam’s financial markets more attractive to foreign portfolio investors.

Resolution 68 sets ambitious targets to simplify land-related administrative procedures and reduce compliance costs by 30 per cent, key steps towards lowering operational burdens for businesses. It also emphasises cutting bureaucracy across all levels of government by streamlining processes, eliminating redundant approvals, and enhancing transparency.

Building on this, Resolution 68 also prioritises completing the legal framework to support technology-driven and digital platform-based businesses, with a focus on fintech, AI, virtual assets, cryptocurrencies, e-commerce, and more.

The introduction of a legal sandbox and post-audit mechanisms, aligned with international practices, allows foreign enterprises to test innovative business models with reduced regulatory risks. This is particularly appealing for FDI in fintech and AI, where regulatory clarity is critical.

Notable points include its emphasis on data security and intellectual property protection, effectively addresses longstanding concerns of foreign portfolio investors, who often cite regulatory ambiguity as a barrier. By safeguarding innovations and technologies through improved intellectual property protections, the resolution fosters a more secure and transparent investment environment.

For FII, the state commits to upgrading and restructuring the stock market, developing the insurance market, and perfecting regulations on corporate bonds. These measures aim to improve the quality and expand stable, low-cost capital mobilisation channels for the private economy, creating a more robust environment for portfolio investments.

One of the most progressive aspects of Resolution 68 is its explicit endorsement of science, technology, innovation, and digital transformation. By emphasising these as pillars of national competitiveness, the resolution aligns Vietnam’s development vision with the industry’s most sought after by global investors.

Foreign companies, particularly in the tech and digital sectors, often look for supportive ecosystems, including talent availability, intellectual property protection, and infrastructure for innovation-led growth. The resolution’s support for research and development (R&D), digital platforms, and green technologies suggests that Vietnam is aiming to become a regional hub for knowledge-based investment.

This resolution encourages FDI in several key areas. Fintech, e-commerce, AI, and crypto startups will be drawn by Vietnam’s tech-savvy population and supportive regulations. Additionally, R&D centres will leverage local talent for innovation, and smart manufacturing and Industry 4.0 projects will thrive in upgraded industrial parks with digital infrastructure.

As Vietnam transitions into a digital economy, FII is expected to grow in parallel. Vietnam is likely to attract more FII into tech-focused firms and startups. Investors are also seeking exposure to listed technology firms, software companies, and green energy pioneers. Resolution 68 bridges direct and indirect funding by fostering a vibrant ecosystem of future-ready businesses.

For direct investors, the clearest path forward is to align with Vietnam’s new priorities in technology, green energy, digital services, and sustainable industries. Forming partnerships with local firms, investing in smart infrastructure, and leveraging industrial areas tailored to innovation will be key. Foreign-led projects that incorporate environmental, social, and governance standards and emphasise knowledge transfer are likely to receive favourable policy support and easier regulatory navigation.

Indirect investors, meanwhile, should focus on companies with strong governance, innovation capacity, and long-term growth strategies, especially in sectors positioned to gain from policy reforms. Vietnam’s capital market is evolving, and early engagement in areas like fintech, clean tech, and digital platforms will offer strong upside potential.

Resolution 68 reaffirms the private sector’s role in driving Vietnam’s growth and sets a clear path towards a more open, innovative, and sustainable economy. With projected FDI inflows of $40 billion in 2025 and rising interest from foreign institutional investors, the resolution signals a strong commitment to turning strategic vision into measurable outcomes.

This year’s structural reforms are creating a more agile and responsive administrative system. With clearer mandates, reduced bureaucracy, and stronger alignment across central and local authorities, Vietnam is now better positioned to turn strategic intent into real-world outcomes.

If this momentum continues, Resolution 68 could mark the beginning of a new era, one where Vietnam is not just a destination for bold ambitions, but a benchmark for delivering investor confidence and economic transformation.

For many years, the private sector has been considered an important motivation. Now that Resolution No.68-NQ/TW is initiated, the private sector is no longer a supporting force that is subject to institutional barriers. It is now seen as a circuit – bringing the energy of reform, technology, and innovation into real economic life.