Vietnam’s National Assembly has passed a resolution with nearly 90 percent support to strengthen mechanisms for private economic development.
Policies include land rent subsidies, interest rate support, tax exemptions, inspection limits, and legal protections for private enterprises, SMEs, and startups, Vietnam Biz has reported.
Key details include:
- Land access: At least 30 percent land rent reduction for 5 years for SMEs and startups in industrial parks; provinces must earmark 20 ha or 5 percent of land for such firms.
- Credit: 2 percent interest rate subsidy on loans for green, circular, and ESG-compliant projects; expansion of SME Development Fund support.
- Tax relief:
- Startups: 2 years income tax exemption + 50 percent reduction for 4 years.
- SMEs: 3-year corporate income tax exemption from date of registration.
- Experts: Personal income tax exemption for 2 years + 50 percent reduction for 4 years.
- R&D support: Deduction of up to 20 percent of taxable income to create enterprise-led innovation and digital transformation funds.
- Digital access: Free state-provided digital platforms and accounting software for small and micro businesses.
- Legal clarity: Economic violations prioritise civil remedies over criminal charges. Businesses can self-remedy first. Inspections limited to once per year (unless violations are suspected).
- Eliminate lump-sum tax regime for business households from 2026; move to standard tax declarations.
- Cut 30 percent of admin time, compliance costs, and restrictive conditions by end-2025.
- Align regulations on land, planning, and investment by December 31, 2026.
This is inline with Resolution 68 issued earlier this year that aims to see Vietnam’s private sector become a bigger part of the economy.