From restriction and denial…
During the country’s difficult period, there was a shortage of everything, and bureaucratic and subsidy policies were in force, denying the private sector a role.
The policy of "strengthening the socialist economy, restricting the private capitalist economy" was stated in Section 3, Part E, Directive No. 252 - BTN/VVG dated 11/11/1957, of the Ministry of Commerce on "Assigning price decisions".
| In a market economy, the public sector is only a part, not dominant or a monopoly. The private sector is the key to creating sustainable growth and bringing real vitality to the market.
After that Prime Minister's Directive No. 212-TTg dated May 15, 1977, on "building the 5-year state plan (1976-1980) and the 1978 plan” stated: “In the process of socialist reform, private enterprises are allowed to exist for a certain period of time but are subject to the conditions of the socialist economy, and must operate according to the trajectory of the plan.”
In 1985 we saw the phrase “not maintain the private sector” in Article 13, Regulations on "reorganising and rearranging the production and business management of the cosmetics industry in Ho Chi Minh City", issued together with Decision 246/QD-UB, dated December 7, 1985, of the HCMC People's Committee.
… To recognition and promotion
When the time came, we had to adopt the market mechanism and recognise and promote the role of the private sector. Following are some notable policies on the recognition and promotion of the private sector.
In 1986 the first Regulation said: “The bank lends to support the development of the family economy, private economy and individual economy, and meet the production and processing needs of the state.”
This was stated in Article 9 of "Provisional regulations on the socialist business mechanism and state management of banking operations to ensure production and business autonomy of all economic units", which was issued together with Decision 76-HDBT dated June 26, 1986, of the Council of Ministers (now the Prime Minister).
In 1989 the principal perception was changed when Point 3, Section II, Resolution of December 28, 1989, of the National Assembly on the targets of socio-economic development in 1990 stated it will “encourage the development of the private economy, individual economy and family economy in urban and rural areas to resolve people’s issues of jobs and livelihoods.”
According to the Company Law and Private Enterprise Law, in 1990 the establishment of a private enterprise required legal capital of VND20 million (applicable to services) to VND240 million (hydropower) and approval from the Council of Ministers or chairman of the province People’s Committee where the enterprise has its head office.
Since 2000 under the Enterprise Law, most requirements for the establishment of private enterprises were scrapped. There were almost no conditions for establishing a private company.
Since 2002 the private sector has been recognized with Section 1, Resolution 14-NQ/TW, dated March 18, 2002, of the Party Central Committee, IXth Congress, on "Continuing to renovate mechanisms and policies, encourage and facilitate private sector development" stating: “The private economy is an important part of the national economy. The development of the private economy is a long-term strategic objective along with the development of a multi-component socialist-oriented economy.”
In 2005 the government enacted the General Enterprise Law which did not distinguish in any way between state and private enterprises.
The General Investment Law did not differentiate between local and foreign investment either.
Resolution 10-NQ/TW dated June 3, 2017, of the 12th Central Committee of the Party said “The development of private sector is an important motivator of the market socialist-oriented economy.”
Among the things it said were: “The private sector is an important driving force for overall economic development. The state economy, collective economy and private economy will be the cores of an independent, autonomous economy. Encouraging and creating favorable conditions for the private sector’s rapid, sustainable and diversified growth in terms of both quantity and quality to make a high rate of contribution to GDP”, “Deleting all barriers and prejudices and creating favorable conditions to develop a healthy private economy” and “Private economy is allowed in all sectors and areas which are not prohibited by law”.