tai bet88 Government support for private sector praised

Sustained government support is crucial for enabling Vietnam’s private sector to meet the rising global demand for environmentally tai bet88 socially sustainable goods tai bet88 services, the Government News has quoted Dr. Michaela Baur, Country Director of GIZ Vietnam, as reporting.

Speaking on the evolving role of the private sector in Vietnam's economy, Dr. Baur noted: "The private sector is becoming the heart of the Vietnamese economy, contributing over 51 per cent of GDP, generating more than 30 per cent of state budget revenue, tai bet88 employing over 40 million people—82 per cent of the workforce."

Despite being dominated by micro tai bet88 small enterprises—over 95 per cent—Vietnam's private sector is poised for growth.

"Tiny companies can grow to small, small to medium, tai bet88 so on. Their relevance tai bet88 involvement in global value chains will increase further," Dr. Baur added.

She emphasized the need for predictability, investment capital, skilled labor, strong value chain partnerships, tai bet88 greater operational freedom as key enablers for enterprise growth tai bet88 innovation.

Vietnam's ambition to achieve double-digit growth tai bet88 become a high-income, industrialized country by 2045 depends heavily on a stronger, more innovative private sector, according to Dr. Baur.

"More companies, bigger companies, more innovation, more integration with global markets—tai bet88 importantly, greener tai bet88 more sustainable," she said.

The domestic private sector benefits from a favorable ecosystem including a youthful workforce, robust economic momentum, government support, digital transformation opportunities, tai bet88 increasing foreign investment, Dr. Baur remarked, adding that regulatory reforms, financial support, improved infrastructure, tai bet88 tax incentives have collectively created fertile ground for private sector development, particularly in high-value, tech-driven, tai bet88 sustainable industries.

Still, challenges remain—especially in human capital. While skill development is improving, a gap persists between market needs tai bet88 workforce capabilities, compounded by regional mismatches between labor supply tai bet88 demand.

GIZ supports Vietnam's private sector through four key areas namely Energy (transitioning to renewable tai bet88 boosting efficiency); Environment tai bet88 Climate Change (spanning agriculture, climate, forestry, tai bet88 transport); Technical tai bet88 Vocational Education tai bet88 Training (equipping the workforce with market-relevant skills); tai bet88 Sustainable Economic Development (promoting inclusive tai bet88 long-term sustainable economic growth).

"The overarching theme of our work is just transition," said Dr. Baur. "We work with tai bet88 for the private sector on behalf of the German government, the EU, Switzerland, tai bet88 others."

Germany's partnership with Vietnam in private sector development dates back to the early 1990s, contributing to key legal reforms including the Law on Domestic Investment Promotion (1994, 1998) tai bet88 the Law on Enterprises (2000).

Today, GIZ's role has been expanded to promoting circular business models, helping SMEs integrate into ASEAN's liberalized markets, supporting digital tai bet88 green transitions tai bet88 strengthening their participation into global supply chains.

As part of its forward-looking initiatives, GIZ will establish a Twin Transition Hub in partnership with Vietnam’s Agency for Enterprise Development. The hub will support SMEs in the green tai bet88 digital transition, particularly in Garment tai bet88 textile, agro-processing tai bet88 wood tai bet88 paper processing

Other Programs of GIZ will help startups develop strategic plans, access international markets, tai bet88 minimize waste, reinforcing Vietnam's circular economy ambitions.

"Germany's economy is built on SMEs—many of them are hidden champions. We're eager to share this know-how so Vietnam can develop its own models that fit its unique context," Dr. Baur said.

Dr. Baur offered several policy recommendations to further enhance private sector development: Streamlining regulations tai bet88 promote e-Government to ensure transparency Improving SME financing by supporting digital lending tai bet88 alternative financing platforms, tai bet88 enhancing capital markets; upskilling the workforce, particularly for then digital economy, tai bet88 subsidize rural digitalization efforts; tai bet88 ensuring fair competition by accelerating SOE (State-owned Enterprises) reforms tai bet88 creating a level playing field for private firms.

In conclusion, Dr. Baur emphasized that inclusive green growth is the inevitable path for Vietnam. Sustained government support is critical to ensuring the private sector can thrive in global value chains while meeting sustainability standards.