On 4 May 2025, Politburo of the Central Committee of the Communist Party of Vietnam issued Resolution No. 68/NQ-TW (“Resolution 68” or “the Resolution”) on the development of the private sector. Under Resolution 68, Vietnam aims to transform its private sector into a globally competitive engine of growth. By 2030, the Government targets:
- 2 million active private enterprises nationwide.
- 20 major Vietnamese corporations integrated into global value chains.
- 10–12% annual growth rate for the private sector.
- 55–58% contribution to GDP from private enterprises.
- 35–40% of state budget revenue sourced from the private sector.
- 84–85% of national employment provided by private firms.
- 20 enterprises per 1,000 people, boosting business density.
- 10,000 trained CEOs to lead innovation and competitiveness.
By singling out the private sector as “the most important driving force” of the economy, the Resolution signals a fresh wave of liberalization - already dubbed Doi Moi 2.0 by Vietnamese commentators, that promises deeper market access, smarter regulation and stronger investor safeguards.
1. Remove barriers related to market entry, business conditions and enhanceequal access to resources for business investment
1.1. Market access and business conditions
Market access conditions are often considered the greatest barrier for foreign investors in Vietnam. Under Resolution 68, the Vietnamese government aims to cut unnecessary market access and business conditions by 30% in existing business conditions by the end of 2025.
At the same time, the Resolution outlines an orientation to improve the legal system governing contract enforcement, dispute resolution in business, including in specific areas such as intellectual property, so that private actors can transact with greater certainty.
1.2. Access to resources for business and investment activities
In the spirit of the Resolution, access to resources such as capital, land, assets, technology, human resources, data, and other natural resources must be equal among all types of enterprises. Whether a state-owned enterprise, a foreign-invested enterprise, or a private enterprise, each shall have the right to mobilize, allocate, and use resources for its business investment activities. A noteworthy incentive includes land‑use support: high‑tech, SME or start‑up investors may receive priority plots in industrial parks and a minimum 30% rent reduction for the first five years.
On the other hand, the Resolution reinforces a domestic-supply-chain requirement. Large FDI projects will need to present a local‑procurement plan at the approval stage as a condition for project consideration and approval. This implies that the Government expects businesses (including foreign owned ones) to increase the use of domestic components, materials, and equipment.
2. Simplify administrative procedures and reduce taxes, fees, and charges
2.1. Administrative procedures
The Resolution mandates a shift from “prior-check” to “post-check” mechanisms, which at present significantly impacts how foreign investors and businesses handle administrative procedures. Generally, except for certain sectors that require mandatory licensing following international regulations and practices, the Government intends to transition the management of business conditions from licensing and certification to public disclosure of business conditions and post-implementation inspections.
Along with the streamlining of the local and provincial authorities (incl. a reduction of the Provinces and Cities of provincial status from 63 to 34), administrative procedures in Vietnam are undergoing a transformation to become faster and more accessible regardless of geographical boundaries. Following Resolution 68, the target KPIs for 2025 remain ambitious, aiming for at least a 30% reduction in processing time and compliance costs.
2.2. Taxes, fees, and charges
To nurture early‑stage ventures, the Government will support SMEs with special supportive policies such as:
- Abolish business‑license tax;
- Grant a three‑year corporate‑income‑tax holiday from the date of incorporation.
3. Grant special incentive for enterprises applying science, technology, and innovation
One of the core themes of Resolution 68 is the emphasis on promoting science, technology, and innovation in the private economy. Accordingly, the Resolution outlines notable policy directions for foreign investors as follows:
(i) Issuance of controlled sandbox regulatory framework for new technologies, products, services, and business models
An example is Decree 94/2025/ND-CP on the controlled sandbox mechanism in the banking sector, issued by the Government of Vietnam on 29 April 2025. Under this Decree, entities covered by the regulation have the right to participate in the Sandbox Mechanism and their fintech solutions are permitted on an experimental basis, along with the building of a specific legal framework. This provides a foundation for foreign investors in relevant sectors to begin exploring investment opportunities in Vietnam.
(ii) Exemption from personal income tax and corporate income tax for individuals and organizations on income derived from the transfer of capital in innovative startups
The investment in innovative startup enterprises under Article 20 of Decree 80/2021/ND-CP will come with the entitlement to the following incentives:
- exemption from corporate income tax for 2 years and a 50% reduction in payable tax for the following 4 years;
- exemption from personal income tax and corporate income tax for revenues deriving from the transfer of shares and similar transactions.
4. Reform tax regime for Household Businesses
Following Section 7 of the Resolution, another major reform is the abolition of the fixed tax regime for household businesses no later than 2026. This change has already begun to take effect from 1 June 2025 under Clause 8, Article 1 of Decree No. 70/2025/ND-CP amending and supplements Clause 1, Article 11 of Decree No. 123/2020/ND-CP.
The current fixed tax regime, which imposes a flat rate on household businesses regardless of their actual income, is set to be phased out. This reform is designed to promote greater transparency, encourage proper accounting practices, and facilitate the integration of these businesses into the formal economy. As part of the transition, household businesses will adopt a standardized tax system that reflects their actual revenues and expenses.
Conclusion
Resolution 68 opens many opportunities not only for domestic enterprises but also for foreign investors to participate in Vietnam as a promising market in the future. Encouragingly, the private sector has already begun to respond to these reform efforts. Participation in national infrastructure projects such as metro lines is gaining momentum, with well-known companies like Vingroup, Sovico, and THACO actively involved. This trend reflects growing confidence among private enterprises in the Government’s commitment to fostering an enabling environment for private sector development.
Authors:
Eric Le Dreau, Managing Partner
Email: eric.ledreau@indochinalegal.com
Nguyen Ngoc Tu Linh. Legal Associate
Email: linh.nguyen@indochinalegal.com