Improving the institutional framework for private-sector development: Experiences from the Republic of Korea and Thailand and lessons for Vietnam
Published: September 16, 2026
Abstract
The private sector is identified as one of the most important drivers of Vietnam’s economy. Based on secondary data and experience from the Republic of Korea and Thailand, this study shows that the private sector contributes substantially to growth, employment, and competitiveness but continues to face barriers involving enterprise quality, informal costs, land access, unequal competition, fragmented green and digital transformation support, and regional disparities in governance quality. Korea provides relevant experience in R&D support, technology credit guarantees, and enterprise linkages, while Thailand offers lessons in cluster development, tiered incentives, and dedicated SME-support agencies. The study recommends regionally differentiated policies, institutionalized green incentives, stronger implementation, formalization of household businesses, and a shift from input-based support toward results-based support.
Keywords
private sectorinstitutionssmall and medium-sized enterprisesRepublic of KoreaThailand
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