Vietnam is undergoing a historic economic transformation. With the adoption of Resolution No.68/NQ-TW, the country has officially declared the private sector to be the most important driving force of the national economy.
This marks a significant milestone – redefining Vietnam’s socialist-oriented market economy and positioning the private sector at the heart of national development. From a German perspective, this bold policy echoes lessons from the post-war wirtschaftswunder (economic miracle) and offers promising signals for entrepreneurs, investors, and policymakers alike.
Germany’s economic recovery after World War II was driven not just by Marshall Plan funds or political stability, but by a deep commitment to the principles of a social market economy. Germany’s former Chancellor Ludwig Erhard’s decision to lift price controls and support private initiative laid the groundwork for rapid industrialisation.
Small and medium-sized enterprises became the backbone of the German economy. Today, these companies are not only major employers but also global leaders in niche markets, often referred to as “hidden champions”.
Vietnam’s vision under Resolution 68, to increase the number of private enterprises to two million by 2030 and raise their GDP contribution to 60–65 per cent, is reminiscent of this German experience. However, quantity alone is not enough. As in Germany, sustainable economic transformation requires a focus on quality, innovation, and global competitiveness.
Resolution 68 recognises that Vietnam’s private sector already contributes around half of GDP and over 80 per cent of employment. Yet, systemic challenges persist – limited access to finance, uneven regulatory enforcement, and a talent gap in executive leadership. Germany faced similar challenges in the 1950s and responded by investing in vocational training, regulatory reform, and infrastructure.
The initiative to train 10,000 CEOs by 2030 shows Vietnam is serious about building managerial capacity. In Germany, such investment in leadership and the promotion of entrepreneurship has been vital. Institutions like chambers of commerce and dual education systems helped turn small family-run firms into international market leaders. Vietnam might consider adapting these frameworks in collaboration with international partners like Germany.
Another key takeaway from Germany’s experience is the importance of scalable enterprises. While a startup culture is vital, long-term growth depends on companies that can expand, innovate, and integrate into global value chains. Resolution 68 addresses this by boosting legal clarity, easing administrative burdens, and encouraging formalisation of household businesses.
Germany’s hidden champions thrive because they operate under predictable rules and benefit from a culture of continuous improvement and international outlook. Vietnam’s move to reduce administrative obstacles by 30 per cent by the end of 2025 and introduce post-audit mechanisms rather than pre-approvals is a welcome step in this direction.
Meanwhile, a major lesson from Germany’s post-war success is the importance of market signals. The overreach of the state, even if well-intentioned, can stifle entrepreneurship. Resolution 68’s clear separation between civil, administrative, and criminal responsibility helps reduce fear among entrepreneurs – an essential condition for innovation and risk-taking.
By reducing privileges for state-owned enterprises and shifting support towards private firms, Vietnam is acknowledging that national champions can emerge from the private sector. This mirrors Germany’s pivot away from state planning and towards a competitive market framework in the 1950s and 60s.
Resolution 68 aligns with international economic trends by emphasising digital transformation, green growth, and environmental, social, and governance principles. Germany’s industrial base is currently undergoing a similar transformation, especially in vehicles, energy, and manufacturing. Vietnam’s focus on sectors like high-tech manufacturing, digital services, and renewable energy positions it well to partner with German firms in these fields.
By building capital markets, improving corporate governance, and encouraging initial public offerings and bond issuance, Vietnam is laying the foundation for long-term institutional investment. These reforms reflect a commitment to transparency and predictability – key elements for attracting global capital.
Vietnam’s journey is far from over, but with Resolution 68, it has made a decisive turn. Germany’s path from devastation to prosperity was neither easy nor linear. But with the right mix of trust in markets, investment in people, and regulatory reform, Vietnam can replicate, and perhaps exceed, the German experience.
The decade ahead will define whether Vietnam escapes the middle-income trap and joins the ranks of high-income nations. The private sector must lead the way.
