Vietnam Plans to Launch New Policies to Boost Private Sectors

Key Highlights-

• Vietnam to launch new policies to gain momentum in the development of the private sector.
• Policies highlight cut of in interest rates, increased land access, and incentives for the private sector.
• Innovative startups and scientists to be included in the Ministry of Finance’s subsidies.

Vietnam’s government has implemented new policies to support the development of the private sector in the country. Different mechanisms have been planned to be implemented for the development of the private sector, involving diversified involvement from the country’s population.

The main objective of the new policy is to remove the overlapping and unnecessary regulation that has been hindering the growth of the sector. The review of such laws is to be completed by December 31, 2025. Furthermore, the government is planning to revamp the administrative procedure by cutting 30 percent in processing time, compliance costs and business conditions. These targets of simplifying the business-related administrative procedures have to be met by 2025-2026, under resolution No. 66/NQ-CP.

The ministry will also be revising its Land access resolution under the new policies. The Ministry of Natural Resources and Environment will be responsible for fixing reasonable land prices, especially for non-agricultural production. The ministry will also ensure land allocation for industrial zones, hi-tech parks and startup joints. The government has urged the ministry to submit a new policy that will grant a rent reduction of at least 30 percent for private hi-tech firms, SMEs and startups.

The Ministry of Finance along with The State Bank of Viet Nam will be providing two percent annual interest rate subsidies. The ministry will also propose a new corporate income tax exemption for two years and a 50 percent tax reduction for the next four years for start-up organizations that are supporting innovations.  This also includes experts and scientists working for innovative enterprises.

The Ministry is planning to submit a proposal for reserving state-funded construction, supply, and mixed tenders worth VND 20 billion for SMEs. This will be led by youth, women, ethnic minorities people with disabilities and people from remote or island areas. These new changes are expected to bring development in the private sector.