On 4th May 2025, Vietnam's Politburo issued Resolution No. 68-NQ/TW on Private Sector Economic Development, positioning the private sector as the most important driver of the national economy. This was followed by National Assembly Resolution No. 198/2025/QH15 on 17th May 2025, establishing special mechanisms and policies for private sector development. Vietnam aims to develop 2 million businesses with strong private sector growth by 2030 and 3 million by 2045, while positioning its technology capabilities among ASEAN's top three.

Major Policy Initiatives

While the resolutions introduce numerous policy initiatives including administrative reforms, resource access facilitation, technology & innovation support, supply chain integration, etc., we highlight the following critical legal and tax developments:

• Principles of inspection and audit: Inspections and audits are limited to a maximum of once per year and overlap between different types is avoided (except in cases of clear violations). Digital transformation is applied with priority given to remote inspections/audits. Compliant businesses are exempt from inspections/audits. The approach shifts from pre-approval to post-inspection monitoring, eliminates market barriers, ensures fair competition, and strictly handles harassment or obstructive behaviors.
   
• The principle of handling violations in business activities clearly distinguishes between the responsibilities of legal entities and individuals, prioritizes civil and administrative measures before criminal ones, allows for economic remediation, prohibits retroactive application of disadvantageous regulations, ensures presumption of innocence, properly seals assets within legal authority, differentiates between legally acquired assets and those resulting from violations, and promptly handles evidence to protect the legitimate rights of businesses.
   
• Corporate income tax (CIT) benefits:
  • Innovative enterprises: 2-year exemption plus 50% reduction for 4 subsequent years for startups, startup investment fund managers, and innovation intermediaries
  • Capital transfer income: Full exemption for income from transferring shares in innovative startups
  • SME support: 3-year exemption for SMEs from first business registration
  • Supply chain incentives: Large enterprises may deduct costs for SME training within their supply chain can deduct training costs for SMEs in their supply chain.
     
• Personal Income Tax reliefs:
  • Capital gains: Exemption for income from transferring shares in innovative startups
  • Talent attraction: 2-year exemption and 50% reduction for 4 subsequent years on salary income for experts and scientists working with innovative startups and innovation centers
     
• License tax elimination from January 2026
   
• R&D and Digital Transformation Support:
  • Accruals of up to 20% of assessable income for R&D funds
  • 200% of R&D expenses deductible when determining assessable income for CIT calculation
  • Free digital platforms and accounting software for small enterprises

Implementation Timeline

The National Assembly will pass special policies during its 9th Session (May 2025), followed by detailed action plans from ministries and local governments. Implementation will be closely monitored with regular performance reviews.