Giản Tư Trung, Rector of PACE Institute of Management and President of the Institute of Research on Education Development.

Việt Nam is positioning the private economy as the 'most important driver' of the national economy, striving to reach two million private enterprises by 2030.

The Rector of PACE Institute of Management and President of the Institute of Research on Education Development, Giản Tư Trung, talked with reporters about Việt Nam’s private sector and its role in the country’s economic future.

How do you perceive the business community's response to Party General Secretary Tô Lâm's strategy for developing the private economy?

I see a strong interest from the business community in General Secretary Tô Lâm's recent statements and writings on the private economy. He has affirmed that the growth of the private economy is a lever for Việt Nam's prosperity - a reality in any developed economy. It's encouraging to see this now officially recognised in Việt Nam.

Viewing the private sector as the most critical driver of economic growth reflects an accurate understanding of its role. Today, this isn’t just a proposal from the business community or a recommendation from experts—it’s a directive from the nation’s highest leader.

In previous phases, the private sector’s robust growth injected new vitality into the economy, spurring economic innovation and national renewal. This time, for the first time, the private sector is being invigorated from the top.

Amid domestic and global business challenges, entrepreneurs are hopeful that the Party and Government’s policies will be bolder, more decisive and more practical than ever to propel the nation forward.

In your view, what is the most important condition for Việt Nam’s private economy to thrive?

The conditions for the private economy to grow are tied to those needed for the broader economy and the country’s development. Beyond the prerequisites for economic take-off and national advancement, equality of opportunity among all economic sectors is essential for the private sector.

We’ve talked about this for years, but achieving true equality requires further progress. Allowing private firms to participate in major national projects would be a significant step toward that goal.

Private enterprises also need equal access to resources—land, finance, data and mechanisms. For instance, they currently face significant hurdles in securing financial resources, relying heavily on collateral, while foreign firms benefit from better credit terms, lower-cost loans and global capital access.

It’s worth noting that the private sector isn’t just large corporations or leading firms—it also includes a vast number of small, medium and micro-enterprises, which make up approximately 95 of all businesses. This community is a powerful engine for economic growth and a safeguard for national economic security during crises.

Can you share insights on the learning and training needs of entrepreneurs and private firms to meet sustainable development demands?

Việt Nam’s private enterprises lack quality human resources across four key groups: managerial talent, expert specialists, skilled workers and general labour.

There’s a regrettable paradox in Việt Nam: businesses struggle to find workers who meet their needs, while many workers struggle to find suitable jobs. Many young graduates end up in roles unrelated to their training or in jobs requiring just weeks of skill-building. This is a massive waste for workers, businesses and the economy.

This stems from multiple causes. At the macro level, we urgently need to overhaul the national education strategy to meet the human resource and talent demands of an economy poised for a bold leap forward.

In the short term, we must reform higher education and vocational training. In the long term, the entire education system—from preschool to university and vocational levels—needs transformation.

Our education system has long been geared toward 'staying modest', but for an era of 'rising up' and conquering global challenges, we need different human resources, different talent and thus a different education and training strategy.

Specifically, the national development strategy for this era must identify key industries and sectors, and the human resource and education strategies must align to produce talent for those areas.

The new generation of entrepreneurs must not only have leadership and business acumen but also cultural depth, humanity, and patriotism—a generation that is 'deeply human, deeply national and deeply themselves,' who see business as earning profit by serving society through wholesome products and services.

We need not only a new generation of entrepreneurs but also a new management paradigm—one that blends rule-based governance, goal-oriented management and cultural leadership. In an age where people are increasingly independent and free, relying solely on rules and targets won’t suffice.

For businesses to grow sustainably, beyond profits, they must prioritise culture and people. Culture isn’t just a means to an end—it’s an end in itself.

For specialists, skilled workers and general labour, beyond professional training, cultural competence is critical. Focusing only on technical skills while neglecting culture makes it hard to scale—or if growth happens, it won’t last.

Looking further, today’s workforce doesn’t just learn for degrees, jobs, or culture—they learn to solve problems: their own, their families’, their companies’, their professions’, their country’s and the world’s. Problems evolve constantly, so individuals must not only keep pace but stay ahead to survive and thrive sustainably.

In the draft Private Sector Development Plan, would you like to see provisions for promoting education and training?

I don’t just want education and training included—I hope the plan clarifies the links between the national development strategy, the private economy strategy, the national human resource strategy and the national education and training strategy.

Only by defining these connections can efforts to advance education and training meaningfully support the private economy and national development as a whole. — VNS