Historic turning point for private economic development

The Politburo’s directive view in Resolution No. 68 clearly states: In a socialist-oriented market economy, the private sector is one of the most important driving forces of the national economy. It is the vanguard in promoting growth, generating employment, increasing labour productivity, enhancing national competitiveness, industrialisation, modernisation, and restructuring the economy towards a green, circular, and sustainable model.

A reform manifesto

Nguyen Hong Chung, Vice Chairman of the Viet Nam Industrial Park Financial Association, considers Resolution No. 68 a new “reform manifesto.” For the first time, the private sector is identified as “one of the most important driving forces.” Placing this sector at the core, alongside the state and collective economies, not only signifies recognition but also represents a political commitment to comprehensive development.

The resolution candidly points out long-standing barriers hampering the private sector, including prejudice, the “ask-give” mechanism, high compliance costs, and unequal access to land, capital, labour, and technology.

It also affirms the State’s role as “facilitator and service provider,” replacing the previously heavy-handed administrative management model. Among its mandates are a minimum 30% reduction in time and cost for legal compliance and business conditions by 2025; shifting from pre-check to post-check mechanisms to encourage innovation and reduce administrative interference; and upholding the principle that businesses may operate in all areas not expressly prohibited by law, moving away from the mindset of banning what cannot be controlled. “This is a key institutional reform that establishes a transparent, open, and genuinely equal business environment.”

According to Dr. Nguyen Si Dung, former Vice Chairman of the Office of the National Assembly, from a position that was previously underestimated and heavily stigmatised, the private economy is now placed on equal footing with the state and collective economies, all playing a core role in building an independent, self-reliant, and deeply integrated economy. Not only is it acknowledged, but the resolution also honours and nurtures the entrepreneurial spirit, affirming that entrepreneurs are “warriors on the economic front.”

This breakthrough thinking not only reflects the Party’s maturity in perception but also sends a strong political message to the business community, household businesses, and the public at large: the State will serve as the enabler, enterprises will be the centrepiece, and developing the private economy is a long-term strategy, not a temporary solution. This document is especially significant—arguably the most important to date—for the private sector.

Tailored support mechanisms

Resolution No. 68 sets the goal that by 2030, Viet Nam will have 2 million enterprises operating in the economy, equivalent to 20 businesses per 1,000 people. The private sector is expected to grow at an average annual rate of 10–12%, outpacing the overall economy. With a vision to 2045, Viet Nam’s private economy aims to develop rapidly, robustly, and sustainably, actively participating in global production and supply chains, and becoming highly competitive regionally and internationally. By 2045, at least 3 million enterprises should be operational, contributing more than 60% of GDP.

To achieve these ambitious targets, the resolution moves beyond administrative reforms and introduces specific policies to help businesses access land, capital, and high-quality human resources. It also promotes digital transformation, innovation, sustainability, and global value chain integration. In particular, small and medium-sized enterprises and household businesses—the most numerous segment—are granted tailored support mechanisms, ranging from tax exemptions to free digital platforms and legal consulting services.

In parallel, the resolution promotes science and technology, innovation, digital and green transformation, and sustainable and efficient business practices. It allows enterprises to deduct 200% of actual R&D expenses when calculating taxable income. Businesses may allocate up to 20% of corporate income to funds dedicated to science, technology, innovation, digital transformation, and R&D. According to Dr. Nguyen Si Dung: “These solutions are key to unlocking the institutional bottlenecks that have long constrained private sector development.”

Representing the business community, Dau Anh Tuan, Deputy Secretary-General of the Viet Nam Chamber of Commerce and Industry (VCCI), noted that annual PCI surveys show larger enterprises face more inspections and higher compliance costs. This contradicts market logic, where larger businesses with better human resources should have fewer violations and lower costs. This has been a significant barrier to enterprise scale-up in recent years.

Thus, the resolution stipulates that civil-economic issues should not be criminalised unless absolutely necessary, aiming to create a safer and more trustworthy legal environment for private enterprises to invest and grow with confidence. Legal provisions in criminal, civil, and procedural laws need amendment to ensure that civil, economic, and administrative measures are prioritised in resolving economic disputes, allowing businesses to proactively rectify violations and damages.

In cases where legal application could lead to criminal or non-criminal outcomes, the resolution calls for avoiding criminal prosecution. If criminal proceedings are necessary, economic recovery measures should be prioritised and considered in subsequent decisions. Retroactive application of legal provisions to the detriment of businesses is also prohibited. “This message not only encourages entrepreneurship and bold innovation, but also provides practical support to create a favourable investment climate, enabling businesses and entrepreneurs to weather difficulties and grow with confidence,” Dau Anh Tuan emphasised.

Currently, the government is urgently submitting a resolution to the National Assembly to promptly address the inadequacies identified in Resolution No. 68. Furthermore, several elements of the resolution have already been incorporated into draft amendments to existing laws being considered in this parliamentary session, such as the Law on Science, Technology and Innovation; amendments to the Law on Enterprises; the draft revised Law on Special Consumption Tax; and the revised Law on Credit Institutions, among others. These governmental efforts are expected to shorten the gap between the Politburo’s new resolution and actual legal regulations and implementation.

However, despite numerous business support policies issued in recent years, their effectiveness remains limited. Surveys show that only a small proportion of businesses are aware of or benefit from these policies. Therefore, to ensure that the spirit of the resolution fully reaches the business community, broader policy communication is needed, along with strengthened monitoring and oversight by businesses, experts, and independent organisations.

“If implemented faithfully and thoroughly, Resolution No. 68 will become a historic milestone, laying the foundation for a new era of sustainable and autonomous development of Viet Nam’s private economy,” Dau Anh Tuan affirmed.

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