Resolution 198/2025/QH15 on certain special mechanisms and policies for the development of the private sector

RESOLUTION

On a number of special mechanisms and policies for private economy development^[1]

THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to Law No. 57/2014/QH13 on Organization of the National Assembly, which has a number of articles amended and supplemented under Law No. 65/2020/QH14 and Law No. 62/2025/QH15;

Pursuant to Law No. 64/2025/QH15 on Promulgation of Legal Documents;

RESOLVES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Resolution provides a number of special mechanisms and policies for private economy development.

Article 2. Subjects of application

This Resolution applies to enterprises, business households, business individuals, and other related organizations and individuals.

Article 3. Interpretation of terms

1. Innovative startup means an enterprise established to realize an idea on the basis of utilizing intellectual property or new technologies or new business models with the potential for rapid growth.

2. Business household means a form of business registered and established in accordance with law by one individual or members of a family household who shall bear full responsibility for business operation of the business household with all his/her/their assets.

3. Business individual means an individual who conducts business activities and bears full responsibility for those activities with all his/her assets.

Chapter II

IMPROVEMENT OF THE BUSINESS ENVIRONMENT

Article 4. Principles for inspection, examination, licensing, certification, competition and access to resources for enterprises, business households and business individuals

1. The number of inspections (if any) for each enterprise, business household or business individual must not exceed once a year, except cases with clear signs of violation.

2. The number of examinations (if any) for each enterprise, business household or business individual, including also inter-disciplinary examinations, must not exceed once a year, except cases with clear signs of violation.

3. For the same content of state management, if an inspection has been conducted, no examination shall be conducted or if an examination has been conducted, no inspection shall be conducted, for enterprises, business households or business individuals in the same year, except cases with clear signs of violation.

4. Inspection and examination plans and conclusions for enterprises, business households and business individuals must be made public in accordance with law.

5. To strictly handle acts of abusing or taking advantage of inspection and examination to harass and cause difficulties to enterprises, business households and business individuals.

6. To strongly apply digital transformation in inspection and examination of enterprises, business households and business individuals; to prioritize remote inspection and examination based on electronic data; to reduce in-person inspection and examination.

7. To waive on-site inspection for enterprises, business households and business individuals that have a good record of law compliance.

8. To complete the legal system, remove market access barriers and ensure a clear, transparent, consistent, stable, easy-to-comply-with, and low-cost business environment.

9. To strongly shift from pre-licensing inspection to post-licensing inspection in association with raising the effectiveness and efficiency of examination and supervision; to change the management of business conditions from licensing and certification to announcement of business conditions and post-licensing inspection, except the sectors subject to licensing procedures in accordance with international regulations and practices.

10. Not to discriminate between entities from different economic sectors in mobilizing, allocating and using capital, land, natural resources, assets, technology, human resources, data and other resources.

11. To strictly handle acts of suppressing competition, unfair competition, acts of abusing dominant positions and monopolies in accordance with law.

12. To strictly prohibit media and press agencies, organizations and individuals from committing acts of harassment or misconducts or disseminating false or inaccurate information, thus affecting enterprises, business households and business individuals.

Article 5. Principles for handling violations and resolving cases in business activities

1. To clearly distinguish between responsibilities of legal persons and responsibilities of individuals in handling violations; between criminal, administrative and civil liabilities; and between administrative and civil liabilities.

2. For civil and economic violations and cases, civil, economic and administrative measures shall be applied first; enterprises, business households and business individuals may take the initiative in remedying violations and damage. If the application of law in practice may lead to or not lead to criminal handling, criminal handling shall not be applied.

3. For violations that lead to criminal handling, to prioritize timely and comprehensive economic remedial measures which shall serve as an important ground for proceeding-conducting bodies to consider deciding on the initiation, investigation, prosecution, trial and subsequent handling measures.

4. Not to retroactively apply laws to handle enterprises, business households or business individuals in a disadvantageous manner.

5. If information, documents and evidence are not clear enough to conclude that there is a violation, a conclusion must be made promptly in accordance with the procedure law and publicly announced.

6. To ensure the principle of presumption of innocence during the investigation, prosecution and trial of cases.

7. To ensure that the sealing, distraint, temporary seizure and freezing of assets related to matters and cases are carried out in accordance with regulations on the competence,  procedures and scope thereof, without infringing upon the lawful rights and interests of organizations and individuals; to ensure that the value of sealed, distrained, temporary seized or frozen assets corresponds to the estimated damage in the cases; to reasonably use necessary measures to preserve the value of assets related to cases; to minimize the impacts of investigation on production and business activities after reaching consensus among proceeding-conducting bodies and without affecting the investigation.

8. To clearly distinguish between legally formed assets and assets/income originated from unlawful acts and other assets related to the cases; to clearly distinguish between the assets, rights and obligations of enterprises and the assets, rights and obligations of managers of enterprises when handling violations and resolving cases.

9. To promptly and efficiently handle material evidence and assets without affecting the proving and resolution of matters and cases; to promptly remedy damage and put assets into use to unlock development resources and avoid losses and waste, ensure the interests of the State and lawful rights and interests of organizations and individuals and comply with treaties to which the Socialist Republic of Vietnam is a contracting party.

Article 6. Resolution of enterprise bankruptcy

1. To expand cases of eligibility for resolution of bankruptcy under fast-tract procedures and grounds for courts to consider and decide on bankruptcy resolution under fast-track procedures for enterprises.

2. To shorten by at least 30% the time and simplify the procedures for resolution of bankruptcy under fast-track procedures under Clause 1 of this Article, compared to regular procedures.

Chapter III

SUPPORT FOR ACCESS TO LAND, PRODUCTION AND BUSINESS PREMISES, AND RENT OF HOUSES AND LAND AREAS BEING PUBLIC ASSETS

Article 7. Support for access to land and production and business premises

1. Localities may use their local budgets to partially support investment in building infrastructure systems of industrial parks, cottage industry zones and technology incubators. Activities eligible for support include: land recovery, compensation and resettlement; and investment in transport, power supply, water supply, drainage, wastewater treatment and communication infrastructure.

2. Project owners that commercially operate infrastructure of industrial parks, cottage industry zones and technology incubators and are eligible for investment support  specified in Clause 1 of this Article must reserve part of the land areas with built infrastructure facilities for lease or sub-lease to hi-tech enterprises belonging to the private economic sector, small- and medium-sized enterprises and innovative startups. The law on management and use of public assets shall not apply to assets formed from the investment support sources specified in Clause 1 of this Article.

3. Based on the actual situation and the local budget-balancing capacity, provincial-level People’s Committees shall specify principles, criteria and norms of investment support and determine land areas with built infrastructure facilities of industrial parks, cottage industry zones and technology incubators reserved for lease or sublease to hi-tech private enterprises, small- and medium-sized enterprises and innovative startups as specified in Clauses 1 and 2 of this Article.

4. For new industrial parks and cottage industry zones established after the effective date of this Resolution, provincial-level People’s Committees shall, based on the actual situation, determine the land area for each industrial park and cottage industry zone with built infrastructure to ensure that the localities set aside an average of 20 ha per industrial park or cottage industry zone or 5% of the total land areas of industrial parks and cottage industry zones for lease or sublease to hi-tech private enterprises, small- and medium-sized enterprises and innovative startups.

5. In case a new industrial park or cottage industry zone is established under Clause 4 of this Article but is not entitled to state investment support for building infrastructure, 2 years after the infrastructure construction is completed, if there is no hi-tech private enterprises, small- and medium-sized enterprises or innovative startups leasing or sub-leasing land with built infrastructure facilities, the project owner that commercially operate infrastructure of the industry park or cottage industry zone may lease or sub-lease land with built infrastructure to other enterprises.

6. Hi-tech private enterprises, small- and medium-sized enterprises and innovative startups are entitled to at least 30% reduction of land rental within the first 5 years from the date of signing land lease contracts with project owners that commercially operate infrastructure of industrial parks, cottage industry zones and technology incubators. The support amount will be refunded by the State to project owners under the Government’s regulations. Provincial-level People’s Committees shall decide on land sub-lease reduction rates as specified in this Clause.

Article 8. Support for lease of houses and land areas being public assets

1. The State shall support small- and medium-sized enterprises, supporting industry enterprises and innovative enterprises in renting local houses and land areas being public assets that have not yet been used or remain unused in the localities.

2. The Government shall specify principles and subjects eligible for the support specified in Clause 1 of this Article.

3. Provincial-level People’s Committees shall draw up lists of public assets available for lease, criteria, support levels, forms of support, and the leasing procedures for each type of asset and publicly post them on the local administrations’ websites.

Chapter IV

FINANCIAL AND CREDIT SUPPORT AND PUBLIC PROCUREMENT

Article 9. Financial and credit support

1. The State shall provide an interest rate subsidy of 2% per year to private enterprises, business households and business individuals when borrowing capital for implementing green, circular projects and applying the environmental, social and governance (ESG) standards framework.

2. The Small and Medium Enterprise Development Fund shall perform the following functions:

a/ Providing loans to small- and medium-sized enterprises;

b/ Providing loans to startups;

c/ Providing seed capital for innovative startup projects and incubator construction projects;

d/ Investing in local investment funds and private investment funds to increase capital supply for small- and medium-sized enterprises and innovative startups;

dd/ Receiving and managing loans, donations, aid, contributions and entrusted funds from organizations and individuals to support small- and medium-sized enterprises.

Article 10. Support in terms of taxes, charges and fees

1. To exempt enterprise income tax for 2 years and reduce payable tax amounts by 50% for the subsequent 4 years for income from innovative startup activities for innovative startups, innovative startup investment fund management companies and intermediary organizations supporting innovative startups. The determination of the tax exemption and reduction period must comply with the law on enterprise income tax.

2. To exempt personal income tax and enterprise income tax for income from the transfer of shares, capital contributions, rights to contribute capital and rights to purchase shares and capital contributions of innovative startups.

3. To exempt from personal income tax for 2 years and reduce payable tax amounts by 50% the subsequent 4 years for experts and scientists with regard to  income from salaries and wages paid by innovative startups, research and development centers, innovation centers and intermediary organizations supporting innovative startups.

4. To exempt enterprise income tax for small- and medium-sized enterprises for 3 years, counted from the date they are granted the first enterprise registration certificates.

5. Large enterprises’ costs of training and retraining human resources for small- and medium-sized enterprises participating in the chains shall be accounted as deductible expenses when determining taxable income to calculate enterprise income tax.

6. Not to apply the presumptive tax method to business households and business individuals from January 1, 2026. Business households and business individuals shall pay tax in accordance with the law on tax administration.

7. To terminate the collection and payment of license fees from January 1, 2026.

8. Not to collect charges and fees from organizations, individuals and enterprises when applying for re-grant or renewal of papers due to restructuring or reorganization of the state apparatus in accordance with law.

Article 11. Incentives in contractor selection

1. State budget-funded construction and installation bidding packages, procurement bidding packages, and mixed bidding packages for goods supply and construction and installation with a price not exceeding VND 20 billion shall be reserved for small- and medium-sized enterprises, with priority given to enterprises owned by young people, women, ethnic minority people or people with disabilities, and enterprises located in mountainous, border or island areas.

2. In case the bidding has been held and no small-and medium-sized enterprise meets the requirements, the bidding may be held again and in this case, does not necessarily comply with Clause 1 of this Article.

Chapter V

SUPPORT FOR SCIENCE, TECHNOLOGY, INNOVATION, DIGITAL TRANSFORMATION AND HUMAN RESOURCE TRAINING

Article 12. Support for research, development and application of science and technology, innovation and digital transformation

1. Enterprises may set aside up to 20% of their taxable income as their funds for the development of science and technology, innovation and digital transformation. Enterprises may use the fund to implement by themselves or outsource science and technology research and development and innovation under the product-based contracting mechanism. The use of the fund must comply with the law on enterprise income tax.

2. Enterprises may account 200% of the actual cost of research and development activities as their taxable income when calculating enterprise income tax under the Government’s regulations.

3. The State shall allocate funds to provide free digital platforms and shared-used accounting software for small- and micro-sized enterprises, business households and business individuals under the Government’s regulations.

Article 13. Support to improve corporate governance capacity and human resources quality

1. To allocate funds from the state budget to implement a program on training and further training of 10,000 chief executive officers by 2030.

2. To provide free-of-charge a number of free services including legal consulting, training in corporate governance, accounting, tax and human resources for small- and micro-sized enterprises, business households and business individuals.

Chapter VI

SUPPORT FOR THE FORMATION OF MEDIUM- AND LARGE-SIZED ENTERPRISES AND PIONEERING ENTERPRISES

Article 14. Order placement, restricted bidding and contractor appointment to implement key and important national projects

1. The State shall expand the participation of private enterprises in key projects of great significance to socio-economic development and in important national projects through direct investment or investment in the form of public-private partnership or cooperation between the State and the private sector in accordance with law.

2. Competent persons and project owners may choose any of the forms of order placement or restricted bidding or contractor appointment or other appropriate forms as specified by law to implement projects in strategic fields, key and important national scientific research projects and tasks, projects on high-speed railways, urban railways, projects on foundational industries, spearhead industries, energy infrastructure, digital infrastructure, green transport, national defense and security and other urgent tasks, ensuring publicity, transparency, quality, progress, efficiency and accountability.

Article 15. Support for the formation and development of medium- and large-sized private enterprises and economic groups of regional and global stature

The State shall formulate programs on, and allocate budgets to support, the formation and development of medium- and large-sized private enterprises and economic groups of regional and global stature through the following programs:

1. A program to develop 1,000 typical enterprises operating in science and technology, innovation, digital transformation and green transition, hi-tech industries and supporting industries;

2. A program to reach out to global markets (Go Global) to support enterprises in terms of market access, capital, technology, branding, distribution channels, logistics, insurance, legal consulting, M&A, and connection with multinational corporations, and resolution of business and trade disputes.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 16. Organization of implementation

1. The Government, the Judicial Council and the Chief Justice of the Supreme People’s Court, the Procurator General of the Supreme People’s Procuracy and provincial-level administrations shall, within the ambit of their competence, detail, guide and organize the implementation of this Resolution, ensuring that mechanisms and policies are accessible, feasible and effective.

2. The Government, ministries, ministerial-level agencies and other central and local agencies shall uphold their responsibilities, especially responsibilities of the heads, in leading and directing the organization, inspection and examination of the implementation of this Resolution, ensuring publicity, transparency, effectiveness and feasibility and preventing policy profiteering, losses and waste.

3. To complete the review, amendment and supplementation and the perfection of land, planning and investment laws by December 31, 2026, at the latest; to further review, amend, supplement and complete other laws related to investment and business so as fully institutionalize the Political Bureau’s Resolution No. 68-NQ/TW of May 4, 2025, on private economy development.

4. To assign the Government to:

a/ By December 31, 2025, complete the review of existing business conditions and regulations and eliminate unnecessary business conditions and overlapping and inappropriate regulations that hinder the development of sole proprietorships; reduce administrative procedure processing time by at least 30%, law compliance costs by at least 30%, and business conditions by at least 30%, and continue to strong cut and reduce them in the following years;

b/ Clearly assign, decentralize and divide responsibilities among different levels and sectors of each agency and unit and define the responsibilities of heads in settlement of administrative procedures;

c/ Establish mechanisms for assessment and giving feedback on barriers and difficulties in production and business activities;

d/ Overcome the lack of consistency in policy implementation between central and local levels, among ministries and sectors and among different localities.

5. Heads of the agencies and units and cadres, civil servants, public employees and employees engaged in the formulation, promulgation and implementation of the mechanisms and policies specified in this Resolution shall be considered for exemption from if they have fully complied with relevant procedures and regulations and earned no personal gain in the process of performing their duties, but losses still occurred due to objective risks.

Organizations and individuals recording outstanding achievements in the implementation of this Resolution shall be commended and rewarded in accordance with law. Acts of corruption, profiteering, and harassment of cadres and civil servants during the implementation of this Resolution shall be handled strictly.

6. The National Assembly, the National Assembly Standing Committee, the Vietnam Fatherland Front Central Committee; and the National Assembly’s Ethnic Council, committees, deputies’ delegations and deputies; and People’s Councils at all levels shall, within their tasks and powers, supervise the implementation of this Resolution.

Article 17. Implementation provisions

1. This Resolution takes effect from the date it is adopted by the National Assembly.

2. If this Resolution on and other laws and resolutions of the National Assembly contain different provisions on the same issue, this Resolution shall apply. In case other legal documents contain more favorable or preferential mechanisms or policies than those in this Resolution, the provisions of those documents shall prevail.

This Resolution was adopted on May 17, 2025, by the 15^th National Assembly of the Socialist Republic of Vietnam at its 9^th session.-

Chairman of the National Assembly
TRAN THANH MAN