Ho Chi Minh City's private sector experiencing resurgence

The country's center for entrepreneurship and innovation

According to Le Thi Huynh Mai, Director of the Ho Chi Minh City Department of Finance, the private sector has been a major growth driver over the past four months. Retail sales and consumer service revenues reached approximately VND 444.9 trillion (USD 17.6 billion), up 20% year-on-year.

Workers at an apparel company in Ho Chi Minh City. (Photo: Nguyen Lac)

Alongside robust domestic consumption, the city recorded over 9% growth in export turnover, estimated at more than USD 16 billion. These indicators provide a strong foundation for the city’s ambition to achieve a gross regional domestic product (GRDP) growth rate of over 8.5% in 2025—pushing toward double-digit growth in line with national directives.

Mai noted that private enterprises and household businesses played a major role in these achievements. She also revealed that total registered capital from newly established businesses and capital increases reached VND 229.4 trillion, a 1.7% rise.

While new capital fell slightly, additional investment jumped nearly 74%, signaling a trend toward restructuring and deep investment within the private sector. Notably, over 6,700 businesses resumed operations in the first four months of the year—an increase of nearly 4% compared to the same period last year.

Commenting on the development of the private economy, Dr. Truong Minh Huy Vu, Director of the Ho Chi Minh City Institute for Development Studies, emphasized that Resolution 68 marks a shift in economic thinking and is expected to provide strategic momentum for breakthrough development in the private sector.

According to Vu, the city is uniquely positioned to lead in implementing bold programs and initiatives to spur private sector growth. “Ho Chi Minh City should aim to become the country’s leading hub for startups and innovation,” he proposed.

Representing the city’s business community, Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association (HUBA), pointed out that more than 80% of Vietnamese and local businesses are small or micro-enterprises, while large enterprises make up just around 2%. This structure limits the resources available for technology investment. In the era of Industry 4.0, private enterprises cannot thrive without significant investment in research and development (R&D).

Some companies are now allocating 3–5% of their revenues to R&D and incorporating advanced technologies such as artificial intelligence (AI) and big data to improve product and service quality. However, Hoa noted that these efforts are still modest compared to global standards. Businesses are calling for more targeted government support, especially in addressing long-standing bottlenecks such as limited access to capital, land, and markets.

Strengthening Ho Chi Minh City's private sector ecosystem

To better support private enterprises, L3 Van Thinh, Head of the Management Board of Export Processing and Industrial Zones, said the city will actively assist major investment projects, including those currently under site surveys. Ho Chi Minh City is expecting to attract around USD 442 million from confirmed projects and another USD 400 million from potential ventures under consideration.

Director Le Thi Huynh Mai highlighted Resolution 68 from the Politburo, which positions the private sector as the most critical driver of national economic development. Moreover, the Government is preparing to submit a resolution to the National Assembly outlining special policies to promote the private sector.

Ho Chi Minh City, in turn, will continue to streamline its business environment and simplify administrative procedures. The city has proposed that the Ministry of Finance allow administrative processes for businesses to be conducted entirely using digital signatures, reducing both time and informal costs.

To facilitate private sector development, Vice Chairman of the Ho Chi Minh City People’s Committee Vo Van Hoan affirmed that the city considers the implementation of Resolution 68 a top priority, and that actions will begin immediately in May rather than waiting until the end of the year.

Departments and agencies—particularly the city's Department of Finance—have been tasked with drafting action plans to support private sector development, from institutional reforms to administrative streamlining, and fostering a transparent, efficient, and equitable business environment.

“This reflects the city leadership’s strong political will to stand side by side with the private sector,” Hoan said. “To truly position the private sector as a key driver of the economy, we must build a modern institutional ecosystem, implement meaningful support policies, and embrace a bold reform-oriented governance mindset. This effort requires not only a determined response from public agencies but also proactive, innovative approaches from businesses in adapting and evolving their business models.”