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Government Action Plan for Private Sector Development

(vasep.com.vn) Government Resolution No. 138/NQ-CP dated May 16, 2025

Government Action Plan for the Implementation of Resolution No. 68-NQ/TW of the Politburo (dated May 4, 2025) on Private Sector Development

To achieve the goals set forth in Resolution No. 68-NQ/TW, the Government of Vietnam issues this Action Plan, directing ministries, sectors, and localities to not only perform their routine tasks but also to urgently and thoroughly implement the following key objectives:

I. ENHANCING INSTITUTIONAL QUALITY AND ENSURING PRIVATE SECTOR RIGHTS

• Shift administrative mindset from control to facilitation, treating enterprises as clients to be served, not controlled.
• Prohibit abuse of administrative decisions, “ask-give” mechanisms, and local protectionism.
• Ensure transparent, market-based policymaking without discrimination between private, state-owned, and FDI enterprises in terms of capital, land, resources, technology, labor, and data access.
• Review and amend legal documents to remove unnecessary business conditions, overlapping regulations, and barriers to private sector growth.
• Accelerate digital transformation to reduce administrative burden and legal compliance costs.
• Review and improve enterprise support policies: simplify procedures, increase support levels, ensure resource availability, and encourage involvement of associations and research institutions.
• Ensure effective protection of ownership rights, business freedom, property rights, and contract enforcement.
• Eliminate overlapping inspections; no more than one inspection per year unless clear violations are detected.
• Clearly distinguish criminal, administrative, and civil responsibilities; separate corporate from personal liability.

II. FACILITATING PRIVATE SECTOR ACCESS TO LAND, CAPITAL, AND HIGH-QUALITY HUMAN RESOURCES

• Revise the Land Law and related regulations to:
  • Control land price volatility, especially for business and non-agricultural land.
  • Reserve land for industrial parks, tech incubators, and SMEs.
  • Support land rental subsidies for innovative startups and high-tech firms.
• Disclose land use plans; apply digital transformation to reduce at least 30% of time in land-related administrative procedures.
• Expand financing channels:
  • Amend Circular 26/2024/TT-NHNN to allow leasing of assets like software, IP, and data.
  • Guide commercial banks to improve access to finance.
• Improve labor quality:
  • Reform graduation assessments to include enterprise involvement in high-quality training programs.

III. PROMOTING SCIENCE, TECHNOLOGY, INNOVATION, DIGITAL TRANSFORMATION, GREEN TRANSITION, AND SUSTAINABLE BUSINESS PRACTICES

• The Ministry of Science and Technology shall revise the draft Law on Science, Technology, and Innovation to:
  • Allow enterprises to allocate up to 20% of taxable income to R&D and innovation funds.
  • Permit 200% tax deduction for R&D expenses.
  • Provide cost support for enterprises using public R&D facilities and labs.
• The Ministry of Finance to propose amendments to the Personal Income Tax Law to:
  • Exempt capital gains from shares or equity in innovative startups.
  • Offer tax incentives to experts and scientists working in R&D and startup ecosystems.

IV. STRENGTHENING LINKAGES BETWEEN PRIVATE, STATE-OWNED, AND FDI ENTERPRISES

• The Ministry of Planning and Investment and Ministry of Finance to revise the Law on Investment and Decision No. 29/2021/QD-TTg to:
  • Offer incentives for large enterprises that lead domestic supply chains, commit to tech transfer, product testing, technical training, and talent development.
  • Promote localization by linking FDI and domestic enterprises.
  • Apply localization ratio schedules in key industries.
  • Require major FDI projects to plan for domestic sourcing during project approval.