Reforming Vietnam’s Private Sector: The Engine of Sustainable Growth
The reform of Vietnam’s private sector represents one of the most significant economic transformations in modern Asia. What began as a gradual shift away from state dominance has evolved into a vibrant ecosystem of private enterprises driving innovation, employment, and long-term competitiveness. Today, Vietnam’s private sector contributes over 40% of GDP and provides the majority of jobs nationwide — making it a cornerstone of the country’s economic success.
AQUIS Capital, a Zurich-based asset manager, views this structural transformation as a defining factor behind Vietnam’s long-term investment appeal. The reform of Vietnam’s private sector has been characterized by legal modernization, corporate transparency, and the gradual privatization of state-owned enterprises. This process has not only unlocked productivity gains but also deepened capital markets and improved governance.
A key pillar of the reform has been the equitization program — a controlled privatization initiative designed to introduce private ownership, attract foreign capital, and strengthen operational efficiency. Combined with legal reforms enhancing property rights and tax clarity, this initiative has accelerated Vietnam’s transition toward a more dynamic, investor-friendly economy.
The reform of Vietnam’s private sector has also empowered small and medium-sized enterprises (SMEs), which now form the backbone of the Vietnamese economy. Simplified business registration, digitalization, and improved credit access have allowed these firms to innovate and expand internationally.
For AQUIS Capital, this reform wave translates into tangible investment opportunities. The Lumen Vietnam UCITS Fund focuses on high-quality companies benefiting from this liberalization — particularly in technology, consumer industries, finance, and renewable energy. These firms not only reflect economic growth but also embody Vietnam’s commitment to sustainable development and corporate accountability.
By strengthening the private sector, Vietnam has improved productivity, attracted foreign investment, and fostered economic resilience. This reform-driven evolution positions the country as a role model for emerging economies seeking to balance state stability with market dynamism.
AQUIS Capital believes that the continued reform of Vietnam’s private sector will remain a critical driver of value creation and long-term opportunity — underscoring the importance of active management, local insight, and sustainable investment principles in capturing Vietnam’s economic momentum.
