Vietnam’s Politburo, the highest decision-making body of the country’s only political party, issued Resolution No. 68-NQ/TW, which aims to reform, develop, and enhance the private sector in the socialist-oriented market economy last May 4. The Resolution signals a strategic shift towards expanding the role of private enterprises—including foreign-invested businesses—as a core engine of national growth.
Resolution No. 68 outlines bold institutional reforms, tax incentives, and structural support meant to foster a more dynamic, innovative, and international-standardized business environment in Vietnam. It also reflects a growing political consensus to modernize the country’s regulatory landscape and strengthen trust between the State and the private sector.
Key takeaways from Resolution 68
A pro-business mindset backed by political will
Resolution 68 officially recognizes entrepreneurs in Vietnam as “peacetime warriors” of national development, highlighting their critical role in driving economic progress. Through it, the Government aims to redefine its relationship with the private sector, grounding it in trust, transparency, and the rule of law. Rather than relying on short-term incentives or administrative interventions, the Resolution emphasizes deep institutional reforms to create a more stable and supportive business environment.
Issued by General Secretary To Lam on behalf of the Politburo, the Resolution underscores the strong commitment of Vietnam’s top leadership to fostering the private economy.
Major cuts to red tape and compliance costs
By the end of 2025, Vietnam targets a 30% reduction in business licensing and operating conditions, as well as a 30% decrease in compliance costs and administrative processing time. Additionally, a shift toward post-audit mechanisms and self-declaration procedures in many sectors will help reduce time-to-market for products and services, making it easier for businesses to operate efficiently.
Business-friendly legal and tax overhaul
The Resolution introduces reforms aimed at creating a more predictable and supportive environment for businesses. These include a commitment to avoid the retroactive application of adverse legal changes, as well as a shift away from imposing criminal liability in cases where economic or civil remedies are deemed sufficient.
Moreover, the Bankruptcy Law will be revised to facilitate smoother business restructuring and exits, while the business license tax will be abolished entirely.
To further incentivize innovation, the Government will offer a 200% tax deduction for research and development (R&D) expenses, along with a capital gains tax exemption for investments in innovative startups.
Eased access to land, infrastructure, and digital services
By 2025, the Government aims to complete a national digital land database, enabling online land transactions and accelerating the issuance of ownership certificates. At least 5% of industrial park land will be reserved for SMEs and startups, who will also benefit from a 30% rent reduction for a period of five years. Additionally, industrial property registration will be fully digitalized, with inspections limited to once per year and conducted online where feasible to reduce administrative burdens for businesses.
Support for innovation, localization, and tech transfer
Vietnam will develop dedicated legal frameworks for emerging sectors such as fintech, artificial intelligence (AI), digital assets, and e-commerce. Large enterprises will be incentivized to transfer technology, support supplier trials, and adopt locally made products and services. At the same time, private enterprises will gain broader access to participate in national initiatives and public-private partnership (PPP) projects, particularly in key sectors like information technology, healthcare, education, and cultural infrastructure.
Fair competition and equal access to resources
Reinforcing its commitment to fair competition and equal access to essential business resources, Vietnam will evaluate entrepreneurs based on clear and measurable criteria, including legal compliance, job creation, tax contributions, and participation in social security programs. The Government also aims to facilitate equal access to critical resources, such as capital, property rights, technology, high-quality human talent, and data, ensuring a more level playing field for all market participants.
What businesses can expect
Resolution 68 is a landmark policy that reflects a more mature, structured, and pro-business approach to private sector development in Vietnam. Although it is more politically binding than legally enforceable and does not override existing laws or decrees, it sets a strong directional framework for future reforms. The Government is expected to align forthcoming laws, decrees, and circulars with the Resolution’s goals, paving the way for a more predictable, transparent, and business-friendly regulatory environment.
Businesses can expect more uniform application of laws, fewer surprise inspections, and a more rules-based and business-friendly environment in the coming times. Yet, the true impact will depend on how effectively the Government and local authorities translate the Resolution into concrete action plans.
Our recommendations
Businesses should closely monitor the upcoming implementing regulations, as these will shape the operational environment over the coming months. This is also a timely opportunity to review and update internal compliance systems, tax strategies, and licensing structures to align with the expected reforms and to ensure readiness for a more streamlined and rules-based regulatory environment.
Demonstrating alignment with Vietnam’s reform priorities—by highlighting contributions to technology transfer, local employment, and digital transformation, for example—can significantly strengthen your company’s reputation and your role as long-term, responsible partners to Vietnam.
Vero Advocacy is actively keeping track of the implementation of Resolution 68 and its implications for foreign businesses. For a tailored regulatory update, sector-specific briefing, or compliance review customized to your business needs in Vietnam, reach out to the Vero Advocacy team today.