Vietnam Private Sector: Special Policies Planned for Development

Vietnam has unveiled a series of resolutions aimed at fostering the growth of its private sector, focusing on tax incentives and streamlined administrative processes. The Ecovis Experts from ECOVIS AFA VIETNAM provide an outline, explaining what these changes mean for start-ups and SMEs.

Recently, Vietnam introduced three resolutions outlining special mechanisms and policies to promote the development of the private sector. These resolutions were accompanied by an implementation plan aimed at the relevant authorities. These measures reflect the government’s strong focus on tax incentives and administrative support to enhance innovation and business growth.

In early May 2025, the Politburo of the Communist Party of Vietnam issued the Resolution 68-NG/TW (“Resolution 68”), which primarily aims to address significant obstacles to the growth of Vietnam’s private sector. This includes institutional and policy reform, safeguarding ownership and property rights, ensuring business freedom, promoting fair competition within the private economy, and guaranteeing the enforcement of private contracts. This directive also serves as a framework for subsequent implementation plans. Subsequently, the Vietnamese government introduced two follow-up directives to guide the implementation of incentives for private economic development, including:

• Resolution No. 198/2025/QH15 (“Resolution 198”), approved by the National Assembly on May 17, 2025, on special mechanisms and policies for private economic development; and
• Resolution No. 139/NQ-CP (“Resolution 139”), dated May 17, 2025, detailing the Government’s plan to implement Resolution 198.

Notably, these dual resolutions include a number of tax and fee incentive policies aimed at fostering growth in the private sector, particularly for start-ups and small to medium-sized enterprises (SMEs). These incentives include:

• Corporate Income Tax (CIT) exemptions for a maximum of 2 years, followed by a 50 percent reduction in CIT for the next four years, targeting innovative start-ups and funds supporting innovation.
• Personal Income Tax (PIT) exemptions on capital gains and income for experts working in innovative start-ups and R&D centres for up to two years, with an additional 50 percent reduction for the next four years.
• A three-year CIT exemption for newly registered SMEs starting from the date of registration.
• Allowing larger enterprises to deduct training expenses incurred in support of SMEs within their supply chains.
• The removal of business licence tax starting January 2026, aimed at reducing administrative burdens.
• Fee waivers for reissuing certificates and permits during times of administrative restructuring.

The recent adoption of Resolutions 68, 198 and 139 by Vietnam marks a significant step toward empowering the private sector as the primary driver of the national economy. Businesses are encouraged to closely monitor the official implementation of these incentives through the expected policy updates this year.

The above content was researched and summarised by ECOVIS AFA VIETNAM from widely published legal documents and articles. If you need to discuss any issues in more depth, please contact us using the details below.