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Dear readers,

Prior to December 1986, on the eve of the 6th National Congress of the Communist Party of Vietnam
(CPV), held between December 15 and 18 that year, Vietnam’s private sector had not been officially
accepted as a component of the national economy. Put simply, there was no place for the sector within
the country’s centrally-planned economy. A turning point came with the “Doi Moi” (Renewal) policy
adopted by the 6th Congress. A single-ownership economy then changed to a multi-ownership
economy, and a closed economy became an open economy.

Vietnam’s history had turned yet another page.

The private economy was then viewed as an official and legal component of the national economy,
which has now become market-oriented. More favorable conditions and foundations have been created
for all components of the economy to grow equally, especially the private sector, and its growth has
been a key contributor to Vietnam’s economic development. Furthermore, the 12th Party Central
Committee issued Resolution No. 10-NQ/TW on the private economy on June 3, 2017, officially
confirming it as an important driver of Vietnam’s socialist-oriented market economy.

As in other countries, family businesses in Vietnam are a core part of the private sector. About 95 per
cent of Vietnamese enterprises are family businesses. The country’s 100 largest family businesses
contribute about 25 per cent of its GDP, and this is why the private sector in general and family
businesses in particular have been encouraged to develop.

There are many topics of discussion when it comes to family businesses in Vietnam, including their
contribution to the national economy, related government policies, corporate governance measures
applicable to such businesses, the entrepreneurial spirit and ambition of their founders, the experience,
knowledge, and even culture in their management, problems facing succession planning, and, of
course, the impact of Covid-19 on their production and services, among others.
Our Cover Story in this June issue focuses on the status of Vietnam’s family businesses, which I hope
will give you a better understanding of the nature of these businesses, which are an indispensable piece
of the puzzle that is the country’s private sector.

DR. CHU VAN LAM
Editor-in-Chief