SPECIAL POLICIES TO PROMOTE THE DEVELOPMENT OF THE PRIVATE ECONOMIC SECTOR

Pursuant to Resolution No. 198/2025/QH15 of the National Assembly

On May 17, 2025, the National Assembly of Vietnam adopted Resolution No. 198/2025/QH15 on a number of special mechanisms and policies aimed at promoting the development of the private economic sector. This Resolution is regarded as a significant step forward in removing legal barriers, improving the investment and business environment, and enhancing the role of the private sector in the national economy.

I. Key Highlights of Resolution No. 198/2025/QH15

1. Limitation on inspection and examination activities

Under the Resolution, each enterprise, household business, or individual business operator shall be subject to no more than one inspection or examination per year, except in cases where clear signs of legal violations are detected. Where an inspection has been conducted, no examination of the same subject matter shall be carried out within the same year, and vice versa. Enterprises demonstrating good compliance with the law may be exempted from on-site inspections.

→ This provision aims to reduce overlapping inspections and unnecessary administrative interference in business operations.

2. Support for access to land and production premises

Local authorities are permitted to use state budget funds to invest in infrastructure for industrial parks, industrial clusters, and technology incubators. A portion of land within these areas shall be reserved for high-tech enterprises, small and medium-sized enterprises (SMEs), and innovative start-ups to lease for production and business activities.

3. Financial and credit support

Private enterprises, household businesses, and individual business operators may receive interest rate subsidies of up to 2% per annum on loans used for:

• Green and circular economy projects; and
• Projects applying environmental, social, and governance (ESG) standards.

4. Transition from pre-licensing to post-licensing supervision

The Resolution promotes a shift from ex-ante (pre-licensing) control to ex-post (post-licensing) supervision in the management of business conditions, thereby reducing administrative procedures, compliance costs, and enhancing business autonomy.

5. Promotion of large-scale private enterprises

The Resolution encourages the formation and development of medium-sized and large enterprises, as well as private economic groups with regional and global competitiveness, through mechanisms such as:

• State procurement and commissioning;
• Restricted bidding; and
• Direct appointment for the implementation of key national projects.

II. Notable Advantages of the Resolution

• Reduced administrative burden: Limiting inspections and promoting post-licensing supervision helps enterprises save time and compliance costs.
• Improved access to resources: Policies on land access and credit support enable enterprises to expand investment and production.
• Encouragement of innovation: Preferential access to premises and financing supports high-tech enterprises and start-ups.
• Promotion of sustainable development: Incentives for green, circular projects and ESG adoption align private sector growth with long-term sustainability goals.

III. Conclusion

Resolution No. 198/2025/QH15 demonstrates a strong commitment by the National Assembly and the Government to recognizing the central role of the private economic sector, while establishing a transparent, stable, and business-friendly legal framework to enable the private sector to develop robustly and contribute significantly to Vietnam’s socio-economic development.