In a symbolic move on May 4, 2025, Vietnam’s Politburo introduced Resolution 68-NQ/TW, a new directive acknowledging the central role of the private sector in Vietnam’s economic growth. The resolution is a landmark for decades of reform, providing distinct policy direction for the private sector.
General Secretary To Lam has officially signed Resolution 68 of the Politburo, affirming the private sector as the most crucial engine of the national economy. The resolution presents various breakthroughs compared to previous resolutions that encompass the private sector growth.
Acknowledgment of barriers to private sector growth
Resolution 68/2025 identifies the main challenges to private sector development:
- Insufficient understanding of the private economy’s role and position, which does not align with developmental needs;
- Complexities in institutions and laws;
- Inadequate attention to leadership and guidance; and
- Incomplete protection of property rights and business freedoms.
Additionally, the private sector continues to face significant challenges in accessing resources, particularly in capital, technology, land, and skilled human resources. Several supportive and preferential policies are ineffective and difficult to access, while business expenses remain high.
To address the issues, the resolution has outlined clear directions and objectives to ensure adequate government support for businesses.
Private sector rises as the top economic force of Vietnam
Released in December 2017, Resolution No. 10-NQ/TW on developing the private economy identified the private sector as “an important driving force” for Vietnam’s economy. This viewpoint has dramatically shifted with the introduction of Resolution 68, which emphasizes that the private sector is “the most important driving force” of the economy. This change of tone indicates the higher-than-ever role of businesses in Vietnam’s economy, setting the direction for future national growth plans and policies.
The resolution dictates the specific treatment for the private sector that the Vietnamese government must adopt, including:
- Completely eliminating perceptions, thoughts, concepts, and prejudices about Vietnam’s private economy;
- Properly assessing the important role of the private economy in national development;
- Nurturing and encouraging the entrepreneurial spirit and innovation of people and businesses, respecting businesses and entrepreneurs, and identifying entrepreneurs as soldiers on the economic front;
- Fully ensuring property ownership rights, freedom of business, equal competition rights, and freedom to operate in industries not prohibited by law;
- Building and strengthening trust between the State and the private sector;
- Protecting the legitimate rights and interests of businesses and entrepreneurs; and
- Ensuring that the private sector competes equally with other economic sectors in accessing business opportunities and resources of the economy, especially capital, land, technology, human resources, data, and other legitimate resources of the country in accordance with the law.
Development goals
Targets by 2030
Resolution 68 positions the private sector as a leader in advancing science, technology, innovation, and digital transformation. By 2030, the goal is to establish 2 million enterprises within the economy, targeting 20 enterprises per 1,000 people, with at least 20 large enterprises integrated into the global value chain.
The private sector is expected to grow at an average annual rate of approximately 10 to 12 percent, surpassing the overall economic growth rate. It aims to contribute around 55 to 58 percent to GDP, approximately 35 to 40 percent of total state budget revenue, and generate jobs for about 84 to 85 percent of the workforce, helping labor productivity increase by an average of 8.5 to 9.5 percent annually.
Furthermore, the level of technological capability, innovation, and digital transformation should position Vietnam among the top three in ASEAN and the top five in Asia.
Vision to 2045
Envisioned for 2045, Vietnam’s private economy will develop rapidly and sustainably while actively participating in the global production and supply chain. It will exhibit high competitiveness both regionally and internationally, aiming to have at least 3 million enterprises operating within the economy by 2045 and contributing over 60 percent of GDP.
Specific tasks and solutions
Eradicating differences in perception, ideology, and action
Resolution 68 underscores the shared understanding among all stakeholders regarding the private sector’s position and role, thereby encouraging a conducive environment for its growth in this new era.
The government will facilitate, support, and nurture the private economy’s rapid and sustainable development, refraining from administrative interference in production and business activities that contradict market principles. It will also commit to fostering an open, friendly, cooperative, and honest relationship between the government and enterprises to serve and promote development.
Amending law provisions
According to Resolution 68, completing the legal system requires removing barriers to market access, ensuring a transparent, consistent, stable, and low-cost business environment.
By 2025, the resolution mandates a review to eliminate unnecessary business conditions and overlapping regulations hindering private enterprises, aiming for at least a 30 percent reduction in administrative processing times, compliance costs, and business conditions, with ongoing future reductions.
A key feature in Resolution 68 is clearly distinguishing between criminal, administrative, and civil responsibilities for legal entities and individuals regarding violations. The directive modifies criminal and civil law provisions, prioritizing civil and administrative measures for addressing violations, allowing businesses to rectify issues proactively.
The resolution also sets out key principles as follows:
- Criminal prosecution must be limited to a last resort in legal applications;
- In cases requiring criminal prosecution, remedying economic consequences should be prioritized;
- Retroactive legal provisions that harm businesses are prohibited;
- When evidence is unclear, swift conclusions are essential to protect enterprises’ reputations and operations; and
- The presumption of innocence must be maintained during investigations and trials.
Facilitating access to resources
Resolution 68 focuses on facilitating the private economy’s access to land, capital, and high-quality human resources. Mechanisms and policies are in place to control land price fluctuations, particularly for production-related land, minimizing impacts on enterprise investment plans. By 2025, the National Land Database, connected to the National Data Center, will be complete.
Local budgets may support infrastructure development in industrial parks and technology incubators, requiring investors to reserve land for high-tech enterprises, SMEs, and innovative startups.
Resolution 68 outlines various capital sources for the private economy, including:
- Prioritizing commercial and green credit for private enterprises;
- Reviewing the legal framework for credit guarantee funds;
- Enhancing the Small and Medium Enterprise (SME) Development Fund; and
- Expanding local and private investment functions to boost capital for SMEs and startups.
Strengthening cross-sector connections
A new aspect of Resolution 68 focuses on enhancing ties between private businesses, state-owned enterprises, and foreign direct investment (FDI) companies. The Resolution explicitly emphasizes developing business linkage networks within industry clusters, value chains, and supply chains. It encourages larger firms to take the lead in domestic supply chains and collaborate with SMEs and individual businesses.
Large enterprises that transfer technology, assist in product testing, provide technical support, and offer knowledge and training for human resources, while utilizing products and services from SMEs, are identified as key players eligible for state preferential policies.
Solutions for enterprises by scale
Resolution 68 outlines specific responsibilities for enterprises based on their size.
Large and medium-sized enterprises
The resolution aims to quickly establish and nurture large and medium-sized enterprises, as well as private economic groups that hold regional and global significance. It encourages increased involvement of private enterprises in essential national projects.
The government will actively implement policies for ordering, limited bidding, or designated bidding, along with preferential measures designed to motivate the private economic sector to collaborate with the state in strategic areas and significant national scientific research initiatives and tasks.
SMEs and business households
For SMEs and business households, there will be effective, supportive policies. This includes reviewing and enhancing the legal framework for individual businesses, reducing gaps, and creating favorable conditions for management organization, as well as financial and accounting systems that promote the transition of business households into registered enterprises.
The focus will be on fostering digitalization, transparency, simplification, and compliance ease in accounting, tax, and insurance systems to facilitate the conversion of business households into enterprises, with a plan to eliminate lump-sum taxes for business households by 2026 at the latest.
SMEs, business households, and individual businesses will have free access to digital platforms, shared accounting software, legal consulting services, and training in business administration, accounting, tax, human resources, and legal matters.
Takeaway
Resolution 68 represents a pivotal step in Vietnam’s economic evolution, emphasizing the private sector as the leading force for growth and innovation. By addressing existing barriers and fostering a supportive environment, the resolution aims to enhance the role of businesses in contributing to the national economy.
Investors and foreign businesses can effectively align with Vietnam’s new priorities outlined in Resolution 68 by embracing collaboration and innovation. By supporting local enterprises, investing in technology and skills development, and engaging in sustainable practices, they can contribute to the growth of the private sector while enhancing their own market presence. Building strong relationships with government entities and committing to long-term investments will not only foster trust but also create mutually beneficial opportunities in Vietnam’s dynamic economy.
