Vietnam's business sector showed contrasting dynamics throughout the first half of 2026. Despite a significant surge in the establishment of new companies—up 11.2% year-on-year—the resilience of the national private sector appears concerning. This phenomenon has raised fears regarding the sustainability of long-term economic growth.
Deputy Head of the Legal Department at the Vietnam Chamber of Commerce and Industry (VCCI), Pham Ngoc Thach, revealed that behind the growth in the number of business entities, innovation capacity is at a low point. VCCI data shows that only 3.9% of companies are willing to allocate capital to research and development (R&D). This figure is considered low compared to the global average of 28%, and lags far behind neighboring countries such as Malaysia and Thailand.
In addition to low R&D investment, strategic collaboration between the private sector and research institutions or universities is also minimal, standing at just 3.9%. This lack of synergy has a direct impact on productivity stagnation. Without a strong research foundation, companies find it difficult to adapt to increasingly uncertain global market fluctuations.
It is not just internal factors; businesses also face severe constraints from a regulatory standpoint. Surveys indicate that the majority of entrepreneurs find it difficult to predict changes in government policy. Overlapping regulations, high compliance costs, and legal uncertainty serve as real barriers that make companies reluctant to expand or plan long-term investments.
Facing these challenges, the VCCI emphasized that institutional reform is an absolute key. The government is urged not only to focus on macro strategies, but also to ensure that every policy has a measurable impact on the investment climate. Real reform quality, rather than mere administrative measures, is considered a primary prerequisite for maintaining Vietnam's competitiveness amidst increasingly fierce global economic competition.
