On the path to realizing its goal of becoming the economic powerhouse of Vietnam's North Coast region, Hai Phong City is witnessing a clear surge in its private sector. The rising figures in the number of enterprises, their contribution to regional GDP, and their growing presence across economic sectors demonstrate the vibrancy and increasing importance of private firms in the local economy. However, according to many experts, the growth “take-off” of Hai Phong’s private sector still does not align with the available potential and the expectations of both the government and society.
Looking back over nearly a decade, the rapid progress of private enterprises is evident. From over 28,000 firms in 2017, Hai Phong now sees close to 40,000 registered by the end of 2024. The sector has contributed approximately 40–48 % to the city’s economic growth over the past five years. These encouraging numbers reflect the dynamism and ambition of local private investors. It’s undeniable that their growing presence has boosted employment, improved incomes, expanded business platforms, and spurred innovation across sectors.
Yet beneath these bright colors lie significant gaps. Numerical growth has not been accompanied by qualitative transformation. Most private companies in Hai Phong remain micro, small, or medium-sized, with limited production scale, low technological capability, and weak internal linkages. As a result, despite their growth, these firms have not yet triggered structural shifts or created economy-wide momentum. Meanwhile, Hai Phong boasts first-class infrastructure in northern Vietnam: a logistics and seaport hub, important industrial and service clusters, modern industrial parks, and attractive to foreign direct investment. Still, domestic private enterprises lack the capacity to join foreign-invested value chains, and local supporting industries are far from maturity. This paradox highlights a wide gap between potential assets and actual capabilities.
The causes stem from both objective and subjective factors. Institutionally, although the city has introduced many incentive policies, legal frameworks remain overlapping and inconsistent. Frequent, unsynchronized regulatory changes create an unstable investment environment, hindering firms’ long-term planning. In addition, operating costs in Vietnam—and Hai Phong—are still high compared to the region, while access to capital, land, and skilled labor is limited. On the business side, many firms lack innovation mindset, are slow to transform business models, underinvest in technology, and neglect local human capital development. Their weak readiness for international competition leaves them at a disadvantage even in the domestic market.
Unlocking true momentum in the private sector requires foundational, systemic solutions. First, the city government must continue refining mechanisms and policies to ensure consistency, stability, and transparency. The investment–business environment must be genuinely improved, enabling firms to grow sustainably rather than temporarily. Meanwhile, support policies should be strengthened to facilitate access to capital, science & technology, digital transformation, and innovation. The government should also take a proactive role in building an ecosystem for startups, nurturing an entrepreneurial spirit, and developing medium-to-large enterprises.
From the enterprise perspective, mindset change is crucial. Hai Phong’s private firms need to proactively integrate, anticipate the digital economy trend, enhance product–service quality, and actively join global supply chains. Investing systematically in human capital, management capacity, and developing domestic brands must become long-term strategies if they wish to overcome fierce market competition today.
It is clear that private enterprises are not just a key pillar in Hai Phong’s economic growth—they are also the driving force shaping the city’s new development landscape. For this take-off to become a sustainable strength, close collaboration between the State and private firms is essential—between institutional support and entrepreneurs’ self-reliance and innovation. When institutional bottlenecks are removed, internal capacity unleashed, and development mindset renewed, Hai Phong’s private sector will surely break through—uplifting the city’s standing on the national economic map and serving as a model for the vibrant and creative development of Vietnam’s private sector in the new era of integration.