Private economy: The breakthrough of the new era

According to global trends, the new era will usher in clear and profound transformations. First, governments and major private corporations worldwide are investing heavily in next-generation chip technology and AI at massive scales. Second is the green transition, aimed at reducing greenhouse gas emissions. Third is administrative reform, shifting from industrial, bureaucratic governance to digitally-driven, technology-based governance. Fourth is the promotion of fair trade.

It can be said that, alongside the three pillars of sustainable development, these four development trends directly impact and affirm the vital role of the Agriculture and Environment sector.

In the new era, agriculture will undoubtedly remain a national advantage, and the environment is one of the three pillars of sustainable development. The sector’s position is not only crucial for supporting the economy, ensuring social welfare, and securing food security, but also contributes to fulfilling international commitments as Vietnam’s economy becomes increasingly integrated globally. However, to fully leverage this special role, the Agriculture and Environment sector must address the challenge of developing the private economy, particularly the transformation of millions of household businesses into enterprises to help achieve the target of 2 million enterprises by 2030.

According to statistics, there are currently around 900,000 enterprises and 5 million household businesses operating nationwide. Notably, among these 5 million household businesses, those engaged in agriculture constitute the majority, at least two-thirds. Therefore, when discussing private economic development, it is essential to approach the issue thoroughly and fundamentally. The greatest challenge today lies not only in expanding the number of private enterprises but also in improving their quality, as transforming 5 million household businesses into formal enterprises is no simple task.

The experience of countries like South Korea and Japan shows that during their industrialization and modernization, land was distributed to the people to maximize agricultural output and support industrial development. However, after completing industrialization, attempts to reconsolidate land for mechanized agriculture largely failed. Farmers had become overly protected, turning into political forces within various parties; land remained fragmented, becoming the biggest barrier to rural economic development. A striking example is Japan, where for every 1% of GDP generated by agriculture, the government had to provide a matching 1% subsidy to maintain political, economic, and social stability.

In Vietnam, with the adoption of Resolution 68 – NQ/TW on private sector development, the issue of scaling up household economies to enable them to accumulate sufficient resources to become enterprises has become a fundamental challenge for the Agriculture and Environment sector. This is truly a process of “transformation” that requires long-term vision and strategy. In reality, before adopting the resolution on private sector development, one could imagine all economic actors in Vietnam as vehicles navigating a narrow alley. In this tight space, whether cars, motorcycles, bicycles, or pedestrians, none could move quickly, and differences in speed were negligible.

Resolution 68 opens a “highway,” allowing all economic actors to move onto a broad avenue. At that point, the speed of each type of economic entity will differ. Cars will certainly move faster, while motorcycles and bicycles may even move slower than they did in the narrow alley. The reason is that the majority of our economy is still composed of household businesses. Without proper support, this segment will remain at bicycle - or even pedestrian - speed, even though they are now on the highway.

Such support must start with policy mechanisms, institutional breakthroughs, and a new governance mindset. In the new era, as we enter a period of green development, continuing with outdated approaches will not lead to progress. Changing governance begins with managing product quality, opening markets, and building trust with consumers and the international community. Institutional breakthroughs must stem from a government mindset that not only sees citizens and businesses as subjects to be served, but elevates them to a higher level, as customers of the government. Citizens and businesses pay taxes and fees to fund government operations and services, and they have the right to evaluate these services, positively or negatively, based on their quality and effectiveness.

Second, the State needs to continue investing, particularly in science and technology, which is one of the four pillars of development in the new era and represents the greatest breakthrough. For example, in the case of the product quality inspection solution (KTRS) that we are collaborating on with South Korea, their government alone has invested over USD 11 billion in this solution, enabling any product to be tested with results in the shortest possible time. The inspection device itself has become a national brand. Vietnam must invest in similar advanced scientific and technological equipment to ensure that its agricultural products can reach any country in the world.

Third, digitalization and AI technology are essential. In the new era, the Agriculture and Environment sector will increasingly integrate into the international economy. Alongside trade agreements, this reflects Vietnam’s commitment to the international community regarding green development, a circular economy, and greenhouse gas emission reduction. To achieve these goals, it is imperative to digitalize and integrate AI technology in production planning, digital industrial applications, industrial product analysis, and environmental indicator assessment.

Finally, it is clear that the Party’s recent resolutions have opened the right paths, aiming to address the urgent issues facing the country’s development, including in agriculture and the environment. These decisions are regarded as foundational institutional pillars, providing strong momentum to propel the nation forward in this era of national resurgence.

Particularly noteworthy is the “four-pillar framework,” which includes: Resolution 57-NQ/TW dated December 22, 2024, on breakthroughs in science, technology, innovation, and national digital transformation; Resolution 59-NQ/TW dated January 24, 2025, on international integration in the new context; Resolution 66-NQ/TW on renewing the lawmaking and implementation process to meet the country’s development needs in the new era; Resolution 68-NQ/TW dated May 4, 2025, on private sector development.

I am confident that the momentum generated by these Party resolutions will pave the way for robust socio-economic development and firmly affirm the vital role of the Agriculture and Environment sector in the new era.