On 4 May 2025, the Politburo of the Communist Party of Vietnam issued Resolution No. 68-NQ/TW (“Resolution 68”) on developing the private economic sector. Nearly 40 years after the Đổi Mới reforms, this resolution marks a turning point: the private sector is now positioned as a core driver of Vietnam’s socialist-oriented market economy.
Key Points
- Vietnam is treating private businesses as a driving force of the economy, marking a significant shift.
- The goal is to reach 2 million active businesses by 2030, with over 60% private sector contribution to GDP by 2045.
- Expect clearer laws, faster procedures, and improved access to resources, aiming for efficiency in business operations.
- The government is advocating for civil approaches to business infractions, fostering an environment conducive to innovation.
- Attention is on the execution of these promises and the pace of real reforms.
Content Summary
Resolution 68 calls for a mindset change among authorities, prioritising respect for entrepreneurship and support for private businesses. This includes reaffirming rights for private enterprises and stressing the importance of innovation and green growth, with the private sector leading in digital transformation efforts.
The Resolution aims for substantial improvements by 2025, including cutting regulatory red tape by at least 30% and increasing private sector contributions to GDP significantly by 2030. Legal reforms will strengthen a business-friendly environment, where “everything not explicitly prohibited is allowed.” Tax reforms targeting ease for small businesses and fair competition are also anticipated.
Foreign businesses will benefit from this stronger private sector, creating a robust local market, improved partnerships, and a more favourable investment environment. Overall, the resolution signals a commitment to a fairer, more dynamic business landscape in Vietnam, with potential for significant growth opportunities for both domestic and foreign companies.
Why should I read this?
If you’re interested in the future of business in Vietnam, this article lays out some pretty exciting changes that could reshape the landscape. Resolution 68 is more than just bureaucratic mumbo jumbo; it’s a serious commitment to boost the private sector and make doing business easier. Seriously, it’s worth a look if you want to stay ahead of the game!