The Rise of the Private Sector

After nearly four decades of economic reform, the private sector has shown consistent growth in both scale and quality, establishing itself as a cornerstone of the socialist-oriented market economy. With over 940,000 registered enterprises and more than 5 million household businesses, it now contributes roughly half of the nation's GDP and over 30% of total state budget revenue, while employing about 82% of the workforce.

Challenges and Opportunities

Despite its significant contributions, the sector faces numerous hurdles. Many enterprises remain small or medium-sized, with limited financial and management capabilities. Issues such as low technological advancement, innovation levels, and competitiveness persist, alongside weak linkages with state-owned and foreign-invested enterprises.

Ambitious Future Goals

The Politburo has outlined ambitious targets for the private sector by 2030, aiming for it to become the national economy's most vital driver. Goals include having 2 million active enterprises, with 20 operating firms per 1,000 people, and at least 20 large firms integrated into global value chains. The sector is expected to grow 10–12% annually, contribute 55–58% of GDP, and employ 84–85% of the workforce.

Looking Ahead to 2045

By 2045, the vision is for the private sector to not only grow rapidly and sustainably but also to play a proactive role in global production and supply chains, with over 3 million enterprises contributing more than 60% of GDP.