Based on Resolution No. 68-NQ/TW of the Politburo on the development of the private economy (“Resolution 68”), on May 17, 2025, the National Assembly adopted Resolution No. 198/2025/QH15 on several special mechanisms and policies for the development of the private economy (“Resolution 198”). Accordingly, through Resolution 198, the National Assembly has officially institutionalized special mechanisms to support and promote the development of the private economy, specifically as follows:
1. Mechanism for protecting the rights and interests of private enterprises:
a) Principle of facilitating conditions and prohibiting harassment:
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Only one inspection or examination per year:
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Each enterprise, business household, or individual business (“enterprise”) shall not be subject to more than one inspection or examination per year, except in cases of clear signs of violations.
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If an inspection has been conducted, no examination shall be carried out, and vice versa, within the same year for the same content of state management.
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Priority is given to remote inspections and examinations based on electronic data; direct inspections and examinations are to be reduced.
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Strict prohibition of harassment by media agencies, organizations, and individuals toward enterprises.
b) Principle of protecting lawful rights and interests of enterprises and entrepreneurs during the handling of violations and resolution of cases by competent authorities:
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Priority shall be given to applying civil, economic, and administrative measures first;
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Priority shall also be given to proactive economic remediation measures, which serve as an important basis for decisions on prosecution, investigation, indictment, trial, and subsequent handling;
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It must be ensured that the origin and relevance of assets involved in a case are clearly distinguished to avoid negatively impacting the operations and lawful interests of enterprises and entrepreneurs during seizure, attachment, or freezing of such assets.
c) Expansion of cases eligible for simplified bankruptcy procedures, whereby such procedures must reduce the time required by at least 30% and simplify the sequence and formalities.
2. Mechanism to support access and use of resources for private enterprises:
a) Support for access to land and production/business premises:
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Localities are allowed to use their local budgets to partly finance infrastructure development in industrial zones, industrial clusters, and technology incubators. The regulations on the management and use of public property do not apply to assets formed from such investment support sources.
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High-tech private enterprises, small and medium enterprises (SMEs), and innovative startups are entitled to a minimum 30% reduction in land rent for the first five years from the date of signing land lease contracts with infrastructure investors of industrial zones, clusters, or incubators. The State will reimburse these rent reductions to the infrastructure investors as regulated by the Government.
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The State supports SMEs, supporting industry enterprises, and innovative enterprises in renting unused or underutilized public assets (land and houses) at the local level.
b) Financial and credit support:
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Private enterprises are eligible for a 2% per annum interest rate subsidy from the State when borrowing funds for green and circular projects and for applying environmental, social, and governance (ESG) frameworks.
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The SME Development Fund shall provide loans to SMEs, startups, innovation projects, and incubator construction projects.
3. Special incentives for private enterprises:
a) Tax, fee, and charge incentives:
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Incentives for innovative startups, venture capital management companies, and startup support intermediaries (“innovative startups”):
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Exemption from corporate income tax for 2 years and a 50% tax reduction for the following 4 years on income derived from innovative startup activities;
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Exemption from personal and corporate income tax on income earned from transferring shares, capital contributions, rights to contribute capital, rights to purchase shares or capital contributions in innovative startups;
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Personal income tax exemption for 2 years and a 50% reduction for the following 4 years for income from salaries and wages of experts and scientists working for innovative startups.
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Incentives for SMEs: Exemption from corporate income tax for 3 years from the date of first issuance of the enterprise registration certificate.
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From January 1, 2026: Termination of business license fee collection.
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From January 1, 2026: Business households and individual businesses shall no longer apply the flat tax method and must declare tax according to the Law on Tax Administration.
b) Incentives in selecting SMEs as contractors for small-value procurement packages using the state budget:
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SMEs shall be given priority to be selected as contractors for construction, goods procurement, or combined packages with a total value not exceeding VND 20 billion.
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Other entities shall only be considered if the bidding process finds no SME meeting the package’s requirements.
c) Tax and funding incentives for R&D, science and technology application, innovation, and digital transformation:
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Enterprises may allocate up to 20% of their taxable income to establish their own funds for science, technology, innovation, and digital transformation;
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Enterprises may deduct expenses for R&D at 200% of actual expenses when calculating corporate taxable income;
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The State shall allocate funds to provide free digital platforms and common accounting software to small, micro, and household businesses as well as individual businesses.
4. Support program for the formation and development of medium and large enterprises, regional and global private economic conglomerates:
The State shall develop and allocate budgets to implement the following programs:
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A program to develop 1,000 exemplary enterprises leading in science and technology, innovation, digital and green transformation, high-tech industries, and supporting industries;
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A “Go Global” program to assist with markets, capital, technology, branding, distribution channels, logistics, insurance, consulting, legal matters, M&A, connection with multinational corporations, and resolution of business and trade disputes.
Thus, Resolution 198 has promptly institutionalized the guidelines and policies set out in Resolution 68, creating new favorable conditions for the development of the private economy in the coming period. Resolution 198 also serves as the legal basis for the National Assembly, Government, and relevant authorities to consider amending, supplementing, or issuing new legal documents accordingly.
On this matter, ATA Global Law Firm has previously conducted analysis and provided proposals for adjusting legal documents in line with Resolution 68-NQ/TW. You may refer to the full article here: ATA'S PROPOSALS FOR AMENDING LEGAL DOCUMENTS IN ACCORDANCE WITH RESOLUTION NO. 68-NQ/TW ON PRIVATE ECONOMIC DEVELOPMENT
Resolution 198 takes effect from May 17, 2025.
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