A cooperative in Cà Mau Province. Việt Nam needs to remove longstanding bottlenecks in access to capital, land and institutional frameworks to promote the development of the private sector. — VNA/VNS Photo Vũ Sinh

HÀ NỘI — It is critical for Việt Nam to remove longstanding bottlenecks in access to capital, land and institutional frameworks to promote the development of the private sector into a key engine for the country’s double-digit growth target, experts have said.

"The private sector has grown rapidly in numbers, but not yet in strength," said Đậu Anh Tuấn, deputy general secretary of the Vietnam Chamber of Commerce and Industry.

Tuấn cited a report finding that private firms account for 96.6 per cent of the more than one million active enterprises nationwide.

However, more than 80 per cent employ fewer than 50 workers, and over 70 per cent have registered capital of less than VNĐ10 billion (US$380,000).

This fragmented structure has made it difficult for businesses to accumulate resources, expand operations and improve productivity, Tuấn said, noting that while nearly 298,000 enterprises entered the market in 2025, more than 227,000 withdrew.

He said companies are facing not only regulatory hurdles, but also growing market pressures, with more than 60 per cent of surveyed businesses citing customer acquisition as their biggest challenge.

Access to finance remains another major obstacle, as banks continue to rely heavily on collateral-based lending rather than assessing cash flows, business performance and growth potential, he added.

Tuấn also highlighted the role of household businesses, which make up a significant part of the economy. However, he said efforts to encourage their transition into formal enterprises are unlikely to succeed if compliance costs continued to outweigh the benefits.

Member of the National Assembly's Economic and Financial Committee Nguyễn Mạnh Hùng said one of the major paradoxes facing the economy is that businesses continue to struggle to access financing, despite ample liquidity in the system.

He pointed out that bank lending remains the dominant source of funding, while longer-term financing channels such as the corporate bond market, investment funds and other financial intermediaries remain underdeveloped.

Hùng cited statistics showing that total outstanding credit in the banking system is equivalent to around 150 per cent of GDP, a relatively high level compared with many developing economies, reflecting the economy's heavy reliance on banks for funding.

Small and medium-sized enterprises in particular continue to face difficulties accessing credit due to limited collateral, weak financial transparency and governance constraints.

Hùng identified institutional and administrative barriers as another major bottleneck. Overlapping regulations and inconsistent implementation, combined with officials' reluctance to take responsibility for decisions, have delayed many investment projects, he said.

"What businesses need the most is not only incentives, but also a stable, transparent, predictable and consistent legal environment," he added.

Access to land and support policies also remains a challenge for many firms, while innovation ecosystems, digital transformation initiatives and value chain links have yet to generate sufficient momentum for private-sector growth, according to the committee member.

Hùng said the Government should shift from a management-oriented approach to one focused on facilitating development, with priority given to removing institutional barriers, streamlining administrative procedures and improving businesses' access to resources.

He also urged enterprises to strengthen corporate governance, improve financial transparency and invest more in technology and innovation to enhance competitiveness and integrate more deeply into global value chains.

Capital market

Production at Long Hải Company in Hải Phòng. Developing the capital market should be regarded as a fundamental solution to reducing pressure on the banking system and creating additional resources for growth. — VNA/VNS Photo Trần Việt

Đào Văn Hà, deputy director of the Monetary and Financial Forecasting and Statistics Department under the State Bank of Vietnam, said bank credit remains the dominant source of funding while capital markets have yet to develop proportionately.

By the end of 2025, the corporate bond market was equivalent to around 9 per cent of GDP, while stock market capitalisation stood at about 78 per cent of GDP, highlighting the economy's continued reliance on bank lending, particularly for medium- and long-term financing needs, he said.

Hà warned that using short-term deposits to finance longer-term loans posed liquidity and maturity mismatch risks, while excessively high credit-to-GDP ratios could increase pressure on inflation and financial stability.

"Developing the capital market should be regarded as a fundamental solution to reducing pressure on the banking system and creating additional resources for growth," he said.

He also stressed the importance of attracting high-quality foreign capital flows, including foreign direct investment, portfolio investment and external borrowing, to provide additional resources for economic development.

Bùi Hoàng Hải, vice chairman of the State Securities Commission, said capital and monetary markets should develop in parallel and support one another.

Transparency is the most important factor in turning capital markets into an effective funding channel, requiring improvements in corporate disclosure standards, governance practices and market infrastructure, Hải stressed.

He added that the launch of the KRX trading system represented an important step toward enhancing transaction processing capacity and market liquidity.

Deputy president of the Vietnam Economic Science Association Hoàng Văn Cường said traditional growth drivers, such as investment, will continue to play a critical role in the near term.

Real estate, in particular, has the capacity to absorb large volumes of capital and generate strong spillover effects across a wide range of industries, he said. However, capital flows into the sector need to be carefully managed to avoid excessive inventories and economic imbalances.

With regard to the real estate market, Hoàng Thu Hằng, deputy director of the Housing and Real Estate Market Management Department under the Ministry of Construction, said efforts have been made to resolve difficulties facing about 1,025 stalled property projects, helping unlock around VNĐ800 trillion ($30.4 billion) in investment capital.

The ministry is also accelerating digital transformation efforts, including the development of a database under which every property will receive a unique identification code, to allow investors and homebuyers to access legal and transaction information more easily.

The Government aims to complete around 158,000 social housing units by the end of this year, and is studying additional incentives on land, financing and infrastructure to attract greater participation from the private sector, Hằng said. — VNS