The private economy is an important driving force of the Vietnamese economy, contributing greatly to GDP growth, job creation and promoting innovation. In the context of innovation and deep international integration, the need to improve the effectiveness of state management of this sector has become urgent to ensure sustainable development, fair competition and maximize the potential of private enterprises. The article analyzes the theoretical basis and viewpoints of the Party over the periods, the current state of policies, legal framework, economic regulation and infrastructure development serving the private sector. The results show that in addition to remarkable achievements, there are still some limitations such as unsynchronized institutions, unmet infrastructure, and weak business capacity. From there, the article proposes orientations and solutions to improve institutions, improve operational efficiency, promote innovation, and create a more transparent and favorable business environment for private economic development.