On May 4, 2025, the Politburo issued Resolution No. 68 on the development of the private sector. In addition to reaffirming the central role of the private economy in national development strategy and setting out specific objectives and breakthrough solutions to maximise the potential of this sector, the resolution also sets the target of having around 2 million active enterprises by 2030 — more than double the current number.

A supportive policy is needed to help household businesses transition to formal enterprises.

Inspiring confidence in business

According to statistics, by early 2025, Viet Nam had over 940,000 active enterprises. To reach 2 million by 2030, an additional 1.1 million enterprises would need to be established in the next five years.

This is a significant challenge, especially considering that Resolution No. 10-NQ/TW (2017) on private sector development had already set the target of reaching 1 million enterprises by 2020 and 1.5 million by 2025. To date, the country has reached just under 1 million enterprises, only about two-thirds of the target.

In recent years, the business withdrawal rate has remained above 70%, and at times has even exceeded the number of newly established enterprises.

For instance, in Ho Chi Minh City, after 14 years of operation, the Hot&Cold bubble tea and skewer chain — one of the country’s largest milk tea brands — recently announced it would cease operations entirely by June 30.

Following shortly after, another popular brand, Comebuy Viet Nam, also abruptly declared its closure.

The closures are attributed to changes in consumer habits and rising operational costs. Even well-known brands have struggled to sustain their operations.

Beyond the beverage industry, many other sectors are also under pressure due to high rental costs, operational expenses, and shifts in customer preferences.

According to the General Statistics Office, in the first five months of this year alone, about 111,600 businesses exited the market — nearly equal to the number of newly established or reactivated businesses (111,800).

This indicates that, in the context of weak consumer demand and an economy that has yet to fully recover, many enterprises are unable to shoulder long-term operating costs.

Given this reality, Phan Duc Hieu, Standing Member of the National Assembly’s Economic Committee, believes that to build a strong business force, the first step is to ensure a large number of enterprises.

Moreover, if market entry is made easier, individuals with ideas and entrepreneurial spirit can quickly launch their businesses.

The principle of reducing bureaucracy and creating favourable market entry conditions for enterprises has been maintained for many years.

However, what’s new in Resolution 68 is its firm and decisive approach, with a clear emphasis on “eliminating all unnecessary administrative burdens.”

Additionally, businesses inevitably make mistakes during operations. In the past, individual violations associated with a business would inadvertently disrupt the company’s operations, and, if poorly handled, could even lead to the business being wiped out.

Therefore, a key feature of the resolution is the move towards better protecting enterprises by clearly separating the responsibilities of individuals from those of the business entity.

In criminal cases, priority should be given to economic restitution before any criminal sanctions are imposed, avoiding the criminalisation of economic relations.

This protection is expected to foster a more sustainable private sector, where enterprises are held accountable but still given a chance to correct mistakes.

Special solutions needed for stronger business health

At the 9th session of the 15th National Assembly, during discussions on the draft resolution concerning mechanisms and policies to develop the private economy, National Assembly Deputy Tran Hoang Ngan (Ho Chi Minh City delegation) noted that the average annual increase in businesses is currently only about 30,000–40,000.

As such, it will be difficult to reach 2 million enterprises within five years. To realise this ambitious goal, he suggested introducing supportive policies to help household businesses transition into registered enterprises, and at the same time, to scale up existing enterprises.

Sharing this view, Dau Anh Tuan, Deputy Secretary-General of the Viet Nam Chamber of Commerce and Industry (VCCI), pointed out that Viet Nam currently has around 5.2 million household businesses, many of which generate annual revenue comparable to medium-sized private enterprises.

If just one-third of these households transitioned into formal enterprises, the target of over 1 million new enterprises in the next five years would be entirely feasible.

In recent years, the government has introduced numerous policies supporting the development of start-ups and business, upholding the principle of freedom to do business in accordance with the Constitution and the law — whereby individuals and organisations are free to conduct any business not prohibited by law. The government is also pushing forward administrative reform and improving the business environment.

“These are conditions that will facilitate market entry and enterprise development. I can sense the excitement and optimism among citizens and businesses regarding this new resolution,” said Tuan.

According to Deputy Tran Thi Van (Bac Ninh Province), compared to other supportive measures such as credit incentives, land access, workforce training, and administrative reforms, tax exemptions and reductions have a faster impact, requiring fewer procedures and helping start-ups and small and medium-sized enterprises to overcome initial difficulties and enhance their competitiveness.

However, to ensure the effectiveness of such tax policies, she proposed extending the corporate income tax (CIT) exemption to five years, followed by a 50% reduction for another five years — instead of the current proposal of two years' exemption and four years at 50%, as outlined in Article 10, Clause 1 of the draft resolution.

Extending the exemption period would provide crucial financial space, allowing businesses to focus on innovation. This would also reflect the state’s role as an enabler, nurturing a start-up ecosystem and pioneering enterprises that contribute to rapid and sustainable economic growth.

Deputy Van also emphasised that newly established enterprises often do not generate profit immediately. The early stages are dedicated to building infrastructure, recruiting staff, researching markets, and developing products.

If tax exemptions apply from the date of business registration, they may expire before the business even turns a profit, thus rendering the policy ineffective.

“Corporate income tax should be exempted for small and medium-sized enterprises for three years from the date they start generating profit, rather than from the date of initial business registration as stated in Article 10, Clause 4 of the draft resolution,” she proposed.

Explaining before the National Assembly, Minister of Finance Nguyen Van Thang stated that for support policies that are delegated to local authorities — such as infrastructure investment or land and property rent subsidies — the draft resolution empowers localities to determine appropriate criteria and support levels based on their circumstances and resources, ensuring transparency, feasibility, effectiveness, and accountability.

“Preferential tax and fee policies will be designed to nurture revenue sources. Although they may reduce budget revenue in the short term, they will help businesses expand operations, thereby contributing more to the state budget and to overall socio-economic development in the long term,” the minister stressed.

Bac Ninh exerts efforts to ensure businesses thrive

To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.

 

Bac Giang leaders hold dialogue with business community

BAC GIANG – On June 17, the Bac Giang People’s Committee hosted a conference titled “Meeting and Dialogue between Provincial Leaders and the Business Community 2025”, attracting the participation of more than 250 domestic and foreign enterprises. Attendees included Nguyen Van Gau, member of the Party Central Committee and Secretary of the Provincial Party Committee; Nguyen Viet Oanh, Chairman of the Provincial People’s Committee (PPC); along with leaders of various departments and sectors.

PM emphasises role of Vietnamese, Swedish businesses in linking two economies

Prime Minister Pham Minh Chinh expressed his hope that businesses from Viet Nam and Sweden would take the initiative to connect with one another and link the two economies, while co-chairing a business forum in Stockholm on June 12 (local time).

 

117 businesses get land rent reduction in Bac Giang

BAC GIANG – So far, the Tax Department of Region VI has reduced land rent for 117 enterprises in Bac Giang province according to Decree No. 87/2025/ND-CP of the Government regulating the reduction of land rent in 2024.

Businesses should shoulder innovation tasks for groundbreaking development

According to the Politburo’s Resolution No. 57-NQ/TW, dated December 22, 2024, on making breakthroughs in the development of science, technology, innovation, and national digital transformation, this is considered a decisive factor in the development of nations. It is seen as a prerequisite and the best opportunity for Vietnam to become prosperous and powerful in the new era of the nation’s rise.