Deputy Minister of Finance Nguyen Duc Tam tells Vietnam Economic Times / Vneconomy how Politburo Resolution No. 68 is revitalizing the private sector.

Since Resolution No. 68-NQ/TW was issued in May by the Politburo on the
development of Vietnam’s private economic sector, what impact has it had on the
business community?

Politburo Resolution No. 68 sets ambitious targets for the private economy,
aiming for 2 million operating enterprises by 2030, or about 20 enterprises per
1,000 people. At least 20 large enterprises are expected to join global value chains,
with the private economy growing 10-12 per cent annually, contributing 55-58 per
cent of GDP, and providing employment for 84-85 per cent of the workforce. By 2045,
the goal is at least 3 million enterprises, contributing over 60 per cent of GDP,
with high regional and international competitiveness.

To achieve this, the Resolution focuses on improving the investment and business
environment, simplifying administrative procedures, reducing compliance costs, and
strengthening support for the private sector to grow and contribute significantly
to GDP.

Since its issuance in May 2025, Politburo Resolution No. 68 has revitalized
the entrepreneurial spirit and boosted business confidence. In the first ten months
of this year, 255,800 new and reactivated enterprises were recorded, for a 26.5
per cent increase over the same period of 2024, and exceeding the number of enterprises
exiting the market by 34 per cent. Private sector capital contributions stood
at nearly VND5,200 trillion ($200 billion), up 98.2 per cent year-on-year, with
over 1 million enterprises operating nationwide as of October 31.

From May to September, an average of over 12,000 enterprises resumed operations
each month, bringing the total to nearly 93,000 in the first ten months of 2025,
up more than 40 per cent year-on-year. Overall, the average monthly number of enterprises
entering or re-entering the market grew to nearly 32,000, a 28.4 per cent increase
over the first four months of the year (24,900 per month).

The business environment has also improved, reflected in positive feedback
from the business community. A survey by the Private Sector Development Research
Board (Board IV) found that over 46 per cent of enterprises “expect / strongly expect”
positive outcomes from Politburo Resolution No. 68; the highest score among business
confidence indicators.

To reach the 2 million enterprise target by 2030, the MoF continues to coordinate
with relevant agencies to complete the legal framework and ensure a favorable, transparent,
and equal business environment. Barriers to market entry and compliance costs are
being addressed through substantial cuts in administrative procedures and reforms
to business conditions.

As of the end of October, the Prime Minister had approved the elimination of
348 administrative procedures, simplified 1,703 others, and cut 2,041 business conditions
at all 14 ministries and agencies. Ministries and agencies also amended or submitted
for approval 172 administrative procedures, simplified 718 others, and cut 222 business
conditions.

Under the approved plan, a total of 2,941 administrative procedures related
to production and business are expected to be cut or simplified (60.2 per cent),
and 2,263 business conditions in regulated industries removed (31 per cent). This
is projected to save 13,182 days in administrative processing and reduce compliance
costs by over VND34.2 trillion ($1.3 billion) a year, or nearly 29 per cent.

Household businesses are key to reaching 2 million enterprises by 2030.
What factors encourage them to convert to enterprise models?

There are currently about 5.2 million household businesses nationwide, representing
a vast area of potential to reach the enterprise development target. Even if only
a small proportion convert to enterprise models, the goal of 2 million enterprises
is entirely feasible.

In reality, however, many household businesses are still hesitant to convert,
which I see as having three main reasons. First, compliance costs between household
businesses and enterprises are still relatively high; second, household businesses
are not fully familiar with enterprise regulations or accounting management, causing
reluctance; and third, household businesses are subject to a simplified tax regime,
with simpler accounting, invoices, and documentation compared to enterprises.

To remove such barriers, Politburo Resolution No. 68 sets an important guideline:
from 2026, the lump-sum tax will be abolished, moving towards transparency for household
businesses and encouraging conversion. Upon becoming enterprises, they will enjoy
multiple incentives and support, such as preferential access to credit, land, training,
technology, and tax incentives in accordance with National Assembly Resolution No.
198.

The MoF has completed a draft decree guiding Resolution No. 198 for government
review and approval. It is expected that once the decree is issued, support policies
for newly-established enterprises and household business conversions will positively
impact this transition.

What specific steps has the MoF taken to help household businesses confidently
convert into enterprises?

The Ministry has focused on two main groups of solutions: improving the legal
and policy framework, and implementing practical support measures.

It is now studying amendments to the Law on Tax Administration and the Law
on Personal Income Tax towards establishing a new management model – simple, transparent,
and easy-to-implement declarations,  and simplifying
accounting, invoices, and documentation to ensure household businesses are not overly
burdened during conversion. It is also researching the development of a Law on Individual
Business to minimize management and financial-accounting gaps between household
businesses and enterprises.

To ensure coordinated implementation, the Ministry is upgrading technical infrastructure
to implement the abolition of the lump-sum tax on household businesses from January
1, 2026; strengthening digital transformation in tax administration by applying
electronic invoices generated from cash registers to ensure correct and full tax
collections, reducing time and costs for household businesses; providing free electronic
tax filing and payment systems, invoice software, and accounting software, prioritizing
support for struggling businesses during the early stages; and accelerating internal
digital transformation to improve public service quality and tax management capacity,
with enhanced data connectivity.

Raising awareness and building management capacity at household businesses
have also been emphasized by the MoF and the General Department of Taxation. Tax
authorities have provided hands-on guidance on electronic invoicing, tax declarations,
and accounting software use. The Ministry is also reforming inspection and supervision
online, based on risk classification, reducing pressure, increasing transparency,
and creating a more business-friendly environment.

How is the Ministry helping small and medium-sized enterprises (SMEs) and
innovative enterprises overcome resource constraints?

The main obstacles currently facing the private sector are access to capital,
land, technology, and high-quality human resources. As an advisory body to the government
on finance and budget and a supporter of businesses and household enterprises, the
Ministry of Finance plans to implement several key measures to help SMEs and innovative
enterprises improve resource access.

First, reforming tax and fiscal policies to incentivize SMEs and innovative
enterprises; proposing suitable corporate income tax incentives for income invested
in research and development (RD) and innovation; waiving or reducing certain
fees for tech startups; and applying rapid deduction and tax refund mechanisms for
enterprises with innovative projects.

Second, effectively operating the SME Development Fund through the research
and improvement of State financial funds outside the budget (credit guarantee funds,
SME development funds, local development investment funds, etc.) to build a model
that meets State management requirements and private sector needs, particularly
for SMEs and innovative enterprises.

Third, increasing land access. The MoF will actively coordinate with other
ministries, sectors, and localities to review and facilitate land leasing for enterprises,
utilizing surplus public assets transparently; and accelerate the implementation
of Resolution No. 198 to allow SMEs, innovative enterprises, and support industries
to access industrial land plots and clusters.

Additionally, the Ministry promotes digital transformation, management and
finance-tax training, and coordination with business associations to help enterprises
understand and promptly utilize support policies.

What are the key priorities in achieving enterprise development goals under
Politburo Resolution No. 68?

I believe there are three main tasks to focus on in the time ahead.

First, continue improving the legal and policy framework for enterprise support
under the direction of the Politburo in Resolution No. 68 and the National Assembly
in Resolution No. 198, quickly putting policies into practice to improve the business
environment; support access to land and production sites, financial and credit assistance,
public procurement, science, technology, innovation, digital transformation, and
workforce training; and support the establishment of medium and large enterprises,
encouraging enterprises to enhance competitiveness.

Second, continue reducing costs and simplifying administrative procedures to
create a favorable, transparent, and efficient business environment. The Ministry
focuses on digital transformation in taxation, customs, and treasury, aiming for
100 per cent Level-4 online public services. This helps enterprises save time and
cost while improving transparency in government management. In addition, it focuses
on removing market entry and operational barriers, cutting administrative procedures,
reducing compliance costs, and reforming business conditions.

Third, foster and spread confidence and the entrepreneurial spirit in society.
The Ministry always identifies enterprise support as not just policy issuance but
as a process of accompanying businesses, listening, sharing, solving problems, and
creating policies that enable growth.

With a series of coordinated solutions, from institutions and policies to practical
implementation, the MoF is gradually removing bottlenecks, creating new momentum
for enterprises, helping the private sector become the most important driver of
the national economy, pioneering science, technology, innovation, and digital transformation,
driving growth, creating jobs, improving workplace productivity, and enhancing national
competitiveness in a new era of prosperity, strength, civilization, and happiness
for the nation.

VET-Vietnam Economic Times