Private Enterprises To Form Backbone Of Vietnam’s Global Growth

In fact, since 2018, investments from private conglomerates have prospered and this can be seen in the case of Vingroup and its investments in automobile and supporting industries and the Truong Hai Auto Corporation and its investments in the automobile and spare parts sector. Additionally, through the economic movement that private conglomerates generate, positive spillover effects for small and medium enterprises can be witnessed and this in turn creates a positive impact on the local economy.

According to Loc, although nearly 98 percent of Vietnamese enterprises are of small and medium size, but it is through the creative application of technologies and adoption of e-commerce that these companies are able to contribute to Vietnam’s trade turnover of USD 450 billion. And moving forward, it is important for there to be a stronger development between the country’s large conglomerates and small and medium enterprises through measures such as administrative reforms, regulatory changes and enforcement of legal rights.