With nearly 90% of delegates in favor, the National Assembly on the morning of May 17 passed a Resolution on mechanisms and policies for private economic development.
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General Secretary To Lam and President Luong Cuong pressed the button to approve the National Assembly 's Resolution on the morning of May 17. |
Regarding support for access to land resources and production and business premises , the draft resolution stipulates that high-tech, small and medium-sized enterprises and innovative startups are supported with a reduction of at least 30% of land rent in the first 5 years from the date of signing the contract with the investor in the infrastructure business of industrial parks, clusters and technology incubators. This land rent support will be refunded by the State to the investor according to regulations. The provincial People's Committee decides on the level of this land rent reduction.
Currently, the country has nearly 450 industrial parks, with a total area of about 93,000 hectares. However, in reality, small and medium enterprises have little access to them, and land rental prices are still high compared to their ability to pay.
For newly established industrial zones and clusters after the effective date of the Resolution, the provincial People's Committee will determine the land fund to ensure an average of at least 20 hectares per industrial zone or cluster or 5% of the total land fund invested in infrastructure for high-tech, small and medium-sized enterprises, and creative startups to lease. In addition, these enterprises can rent houses and land that are public assets that have not been or are not used in the locality.
Regarding credit support, businesses, households and individual businesses are supported with an interest rate of 2% per year when borrowing capital to implement green, circular projects and apply the environmental, social and governance (ESG) standards framework.
The Small and Medium Enterprise Development Fund will lend to small and medium enterprises, startups, and provide initial capital for innovative startup projects and technology incubators.
The fund also invests in local and private investment funds to increase the supply for small and medium enterprises and startups. The Small and Medium Enterprise Development Fund will receive and manage loans, grants, aid, and trusts from organizations and individuals to support small and medium enterprises.
Regarding tax and fee support, startups and innovative startup investment fund management companies are exempt from income tax for 2 years, and have 50% of the tax payable reduced for the next 4 years for income from innovative startup activities.
Small and medium enterprises are exempt from income tax for 3 years from the date of being granted the first Certificate of Registration.
Experts and scientists at research and development centers, startups, intermediary organizations supporting creative startups... are exempted from personal income tax for the first 2 years, and 50% reduction for the next 4 years on income from salaries and wages.
Regarding support for research and development of technology applications, the Resolution allows enterprises to deduct up to 20% of taxable income to establish a Fund for development of science, technology, innovation and digital transformation. Enterprises can use this fund to self-deploy or order research and development of science, technology and innovation.
The State provides free digital platforms and shared accounting software for small and micro enterprises, business households and individual businesses.
The breakthrough point of this Resolution is the regulation of principles for handling violations and incidents in business activities. Accordingly, legal and personal responsibilities; criminal and civil responsibilities, administrative and civil responsibilities in handling violations are clearly defined.
Civil and economic measures are given priority in civil and economic violations. Enterprises, households and individuals doing business are allowed to proactively remedy violations and damages.
The number of inspections (including inter-sectoral inspections) of enterprises, households and business individuals is a maximum of once a year, except in cases of clear signs of violations; direct inspections and digital transformation applications, with priority given to inspections based on electronic data. Enterprises and business households that comply with legal regulations are exempted from actual inspections.
Along with that, the draft resolution also adds principles for handling evidence and assets during the investigation, prosecution and trial of a number of criminal cases as stipulated in Resolution 164/2024 of the National Assembly. This is to help businesses and entrepreneurs quickly overcome the consequences of damage, put assets into use to free up resources and avoid loss and waste.
Vietnam currently has over 5.2 million business households, creating 8-9 million jobs, equivalent to the private sector, according to data from the General Statistics Office for the years 2018-2020. The private economic sector, including business households, currently contributes about 51% of GDP and over 30% of the state budget.
From January 1, 2026, the lump-sum tax for business households will be abolished. Instead, business households will have to register and declare taxes according to tax management regulations. This is to achieve the goal of Vietnam having 2 million enterprises by 2030 and 3 million by 2045, according to Resolution 68 of the Politburo.
To implement these special policies, the National Assembly assigned the Government to review and amend regulations on land, planning, and investment. This must be completed before December 31, 2026.
The review and elimination of overlapping business conditions and regulations that hinder private economic development must be completed no later than December 31, 2025. Accordingly, the Government must reduce at least 30% of administrative procedure processing time, 30% of legal compliance costs, 30% of business conditions and continue to cut them sharply in the following years.
Source: https://baobacgiang.vn/kinh-te-tu-nhan-duoc-huong-nhieu-co-che-dac-biet-postid418276.bbg
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