Vietnam aims to generate half of its economic output from the private sector within two years, its prime minister said, giving a clear indication of the communist-ruled country’s determination to make private enterprise the main engine of its economy.

Nguyen Xuan Phuc also said that Vietnam, bolstered by new trade agreements and improved conditions for businesses, was set to surpass its GDP growth rate of nearly 7 per cent last year, and maintain this momentum for “many years to come”.

“The private sector is an important impetus for the economy of Vietnam,” said Mr Nguyen. “We will try to put in place the most favourable policies and create the most favourable environment so that by 2020 we will have in operation over 1m businesses accounting for 50 per cent of Vietnam’s GDP”, up from 43 per cent at present.