Based on operational principles of a market economy, development practices of countries worldwide, and achievements of Vietnam’s private sector, the paper argues from the position of the private sector as the most crucial driving force in achieving Vietnam’s goals of rapid economic growth. However, in recent times, the private sector has still faced many shortcomings, most notably low operational efficiency, outdated technology, and weak linkages to promote its strengths. Therefore, to foster the private sector as the key growth engine, removing existing bottlenecks, especially the institutional ones that have hindered its development, has become a must. Based on an inclusive development perspective, the paper proposes solutions to systematically address institutional bottlenecks.