Vietnam’s private sector has expanded rapidly over the past five years. From 811,500 active enterprises at the end of 2020, the country crossed the one-million mark by late 2025.
Data from the Ministry of Finance shows that as of August 31, 2026, Vietnam was home to 1,071,731 active businesses with a total registered capital exceeding VND32.5 quadrillion ($1.23 trillion). The private sector accounts for 96 percent of all enterprises (more than 1 million firms) and holds VND24.5 quadrillion ($931 billion) in registered capital - representing 75.2 percent of total market equity.
Behind these headline figures, however, lies significant structural weakness. The Vietnam Private Sector Report 2025, published by the Vietnam Chamber of Commerce and Industry (VCCI), highlights a persistent reality.
Domestic private enterprises are “numerous in quantity but small in scale.” Over 80 percent of private companies employ fewer than 50 workers, and 70 percent operate with registered capital under VND10 billion ($380,000).
Furthermore, the sector faces three chronic operational bottlenecks.
First, limited capital access remains a primary hurdle, affecting over 50 percent of businesses. Commercial banks rely heavily on real estate collateral, placing private firms at a disadvantage regarding loan terms and interest rates. Burdensome paperwork and informal costs further compound financial pressures.
Second, institutional risk and compliance burdens are escalating. Policy-related difficulties reported by businesses rose from 16.9 percent to 24.3 percent. Only 6 to 8 percent of surveyed firms stated they could regularly or always predict policy changes. Poor access to draft regulations prevents businesses from contributing feedback and adjusting operational plans in a timely manner.
Third, market entry friction and hidden costs persist. Although business registration takes under a month, poor administrative execution, ambiguous guidelines, and flawed online portals force nearly 10 percent of enterprises to resubmit paperwork four times or more.
Crucially, informal “grease payments” remain high: 26 percent of firms pay informal fees to obtain business licenses - nearly triple the regional average of 9.5 percent- while similar practices affect construction permits (31.4 percent) and import licenses (32.3 percent).
A proactive government response and strategic reforms
To dismantle these barriers, Mr. Dau Anh Tuan, Vice General Secretary of VCCI, recommended shifting commercial lending criteria from collateral reliance toward cash-flow, business plan, and value-chain assessments, aligning with Resolution 68-NQ/TW of the Politburo on private economic sector development.
Mr. Tuan also urged the State Bank of Vietnam to issue specific credit appraisal guidelines that accept intangible assets and future-formed assets as security. Additionally, regulatory drafting requires genuine Regulatory Impact Assessments (RIA) and adequate transition periods, while administrative procedures must be fully digitized to eliminate informal costs.
Acknowledging these pain points, state agencies are shifting toward constructive facilitation. At the launch of the “Listening for Creation” initiative, Mr. Bui Anh Tuan, Director General of the Agency for Private and Collective Economic Development under the Ministry of Finance, emphasized the government’s commitment to unblocking resources for socio-economic growth.
Under Government Resolution 35/NQ-CP, addressing business grievances has become a mandatory agenda item at monthly government meetings. A joint working group comprising the Ministry of Finance, VCCI’s Legal Department, and the Government Office maintains a live tracking system recording every enterprise petition, affected policy provisions, and resolution progress. Weekly reports are submitted directly to government leaders.
The Ministry of Finance has also engaged in direct dialogues with industry associations to address acute bottlenecks in taxation, customs, and real estate on the spot.
Through close coordination between ministerial bodies and VCCI, Vietnam’s business environment is poised for a qualitative leap forward, fulfilling the government’s core mandate: resolving bottlenecks and unlocking resources for national development.
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