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Vietnam Sets Bold Vision for Private Sector Growth
General Secretary To Lam has signed Resolution 68 of the Politburo, prioritizing the private sector as the most important engine of Vietnam’s economy.
By 2024, private businesses already account for 50.4% of GDP, about 30% of state budget revenues, and 85% of national employment. But the government is moving beyond targets to action.
Under Resolution 68, R&D expenses is now tax deductible (up to 20% of pre-tax profit). Another target is Regulatory Reform and Administrative Streamlining, making easier and faster to start, operate, and grow a business. By 2025, the government targets a 30% reduction in licensing conditions, compliance costs, and administrative delays.
Tax reforms include phasing out the business license tax and granting corporate income tax exemptions for SMEs in their first three years. Additionally, industrial parks must reserve at least 20 hectares (or 5% of land) for startups and SMEs, with 30% rent discounts over five years to boost accessibility.
These concrete measures are designed to achieve Vietnam’s ambitious goals: 10–12% annual private sector growth, 55–58% GDP contribution, 35–40% of state revenues, 84–85% of employment, and 8.5–9.5% yearly labor productivity gains.
Vietnam is entering a transformative phase — offering businesses and investors a pivotal opportunity to engage with one of Southeast Asia’s most dynamic emerging markets.
