Driving forces for the development of the private economy.

In recent years, the private sector has increasingly affirmed its role as a crucial driving force for economic growth in Phu Tho province. However, during this development process, many small and medium-sized enterprises (SMEs) still face numerous difficulties regarding production costs, capital, and consumer markets. The National Assembly's issuance of Resolution No. 198/2025/QH15 (hereinafter referred to as Resolution 198) on some special mechanisms and policies for the development of the private sector is considered an important step to address these "bottlenecks." In particular, tax exemption and reduction policies are gradually creating favorable conditions for businesses to reduce their financial burden, expand production, enhance competitiveness, and contribute positively to local economic growth.

In the province, the private sector plays an increasingly important role in the economic structure. Currently, the province has over 41,000 registered businesses, with private enterprises accounting for over 90%. This sector not only creates jobs for hundreds of thousands of workers but also contributes significantly to annual budget revenue. The province's investment attraction activities have also shown many positive signs.

In 2025 alone, total domestic investment in the province is expected to reach approximately 260 trillion VND, a 3.6-fold increase compared to 2024. This result demonstrates the locality's ability to attract and effectively utilize investment resources, while also reflecting the strong development of the private sector. Many private enterprises have boldly invested in technological innovation, improved management capabilities, participated more deeply in global value chains, and gradually expanded their export markets.

The policy of exempting and reducing corporate income tax encourages household businesses in the province to convert into enterprises, thereby promoting the development of the private economic sector.

Furthermore, a favorable business environment has fostered a wave of startups and production expansion. By 2025, the province is expected to have over 4,800 newly registered businesses with a total registered capital exceeding 45 trillion VND; and over 1,000 businesses resuming operations.

In the context of a volatile economy, the policy of exempting and reducing corporate income tax is considered a practical solution, contributing to creating additional resources for businesses to maintain and expand their production and business activities. According to Resolution 198, small and medium-sized enterprises (SMEs) will be exempt from corporate income tax for 3 years from the date of their initial business registration certificate.

In addition, innovative startups, startup investment fund management companies, and intermediary organizations supporting innovative startups are exempt from corporate income tax for the first two years and receive a 50% reduction in tax payable for the following four years on income from innovative startup activities.

For many newly established businesses, this is a practical support policy during the initial stages. This policy helps businesses reduce financial pressure during the startup phase, thereby freeing them up to invest in machinery, expand production, and improve product quality. It also motivates businesses to confidently develop, gradually stabilize their operations, and make positive contributions to the socio-economic development of the locality.

In addition, the tax exemption for newly registered small and medium-sized enterprises (SMEs) for the first three years creates an incentive for eligible business households to convert to establishing enterprises in 2026; thereby promoting the development of the private sector. Ms. Nguyen Thi Phuong, a business household in Viet Tri ward, shared: “The policy of exempting corporate income tax for the first three years for newly registered SMEs is a huge motivation for business households like ours. Previously, many households were still hesitant to convert to the enterprise model due to concerns about costs and tax obligations in the initial operating period.”

However, with this tax exemption policy, we have more confidence and favorable conditions to boldly register and establish a business in 2026. This transformation will not only make production and business operations more systematic and transparent, but also open up opportunities to access many government support policies, thereby creating conditions for business households to develop sustainably and contribute positively to the development of the private economic sector in the area."

To ensure that preferential policies are implemented promptly, the provincial tax department has proactively deployed many comprehensive solutions to support businesses in accessing and benefiting from the policies as stipulated. The focus is on strengthening the dissemination of the Resolution's content through various forms. This helps businesses understand the conditions, procedures, and steps to receive tax incentives, minimizing the risk of missing out on benefits due to lack of information.

In addition, the tax sector continues to promote administrative procedure reform and strengthen the application of information technology in management and support for taxpayers. Electronic tax services such as online tax declaration, tax payment, and tax refund are maintained and improved in efficiency, significantly contributing to reducing the time and cost of fulfilling tax obligations for businesses.

In the coming period, the provincial tax department will continue to review and simplify procedures related to determining and applying tax exemption and reduction policies; strengthen direct guidance for newly established businesses, innovative startups, and small and medium-sized enterprises. At the same time, the tax authorities will closely coordinate with relevant departments and local governments in sharing information and supporting businesses from the registration stage, helping them quickly access and implement preferential policies as stipulated.

The tax sector also focuses on improving the quality of its staff and civil servants; strengthening consulting, support, and problem-solving for taxpayers; ensuring that tax exemption policies are implemented correctly, targeting the right subjects and complying with regulations; and creating an increasingly transparent and favorable business environment for the sustainable development of the business community.

With timely support mechanisms and policies from the State, along with the proactive efforts of management agencies, the private sector in Phu Tho is expected to continue playing a crucial role in promoting growth, contributing to enhancing competitiveness, and creating a solid foundation for the socio-economic development of the locality.

Le Oanh

Source: https://baophutho.vn/dong-luc-phat-trien-kinh-te-tu-nhan-249489.htm