Comprehensive Overview of Resolution 198/2025/QH15: Boosting Private Economic Development in Vietnam
- Luật sư TRẦN VĂN LONG
- 2 days ago
- 4 min read
On May 17, 2025, at 02:47 PM +07, the Vietnamese National Assembly approved Resolution 198/2025/QH15, introducing special mechanisms and policies to enhance the role of the private economic sector, including enterprises, business households, and individual business operators. Below is a detailed overview reflecting all content from the document.
Table of Contents
Download the full text of Resolution 198/2025/QH15 dated May 17, 2025, here:
1. General Provisions
The resolution applies to enterprises (especially innovative startups and small/medium enterprises), business households, individual business operators, and related organizations and individuals.
Key Definitions:
Innovative startup enterprise: An entity established to leverage intellectual property, new technology, and innovative business models with high growth potential.
Business household: A business form registered by an individual or family, bearing unlimited liability with all personal assets.
Individual business operator: A person engaging in business activities and bearing similar unlimited liability with personal assets.
2. Improving the Business Environment
The resolution outlines measures to create a favorable business climate:
Limited inspections and audits: Each entity is subject to a maximum of one inspection or audit per year, unless clear violations are evident. Results must be publicly disclosed.
Digital transformation: Prioritizing remote inspections using electronic data, minimizing on-site checks.
Avoiding overlap: No dual application of inspections and audits on the same issue within a year, except when necessary.
Management shift: Transitioning from pre-control to post-control, replacing permits and certifications with condition declarations, except in specific fields mandated by international norms.
Ensuring fair competition: Removing market access barriers, strictly addressing abuses of power, harassment, or unfair competition.
3. Handling Violations and Resolving Cases
Clearly distinguishing legal entity and individual liability, prioritizing civil and administrative measures before criminal proceedings.
No retroactive application of laws to cause disadvantage.
Upholding the presumption of innocence during investigation, prosecution, and trial processes.
Asset management: Sealing, inventorying, or freezing assets must follow proper authority and procedures, avoiding impact on lawful rights and business operations.
4. Support for Land and Infrastructure Access
Infrastructure investment: Local governments may use budgets to support land recovery, compensation, resettlement, and development of transportation, electricity, water supply, wastewater treatment for industrial parks, clusters, and technology incubators.
Land allocation: Reserving at least 5% of the area or 20 hectares for high-tech enterprises, small/medium enterprises, and innovative startups in new industrial zones.
Leasing public assets: Unused public properties (buildings, land) can be leased to small/medium enterprises, with exemptions from public asset management regulations for supported assets.
5. Financial, Credit, and Public Procurement Support
Interest rate relief: Offering a 2% annual interest rate reduction for green, circular projects meeting ESG standards.
Development Fund: The Small and Medium Enterprise Development Fund provides loans, startup funding, investments in local/private funds, and manages capital from organizations and individuals.
Tax incentives:
Two-year exemption and 50% reduction for the next four years on corporate income tax for innovative startup income and equity transfers.
Two-year exemption and 50% reduction for the next four years on personal income tax for experts and scientists working with innovative enterprises.
Three-year exemption on corporate income tax for certified small/medium enterprises.
Elimination of lump-sum tax and license fees from January 1, 2026; waiver of fees as per legal provisions.
Public procurement: Procurement packages under 20 billion VND prioritize small/medium enterprises, especially those owned by youth, women, ethnic minorities, or people with disabilities. If no eligible enterprises apply, re-tendering is allowed without this preference.
6. Support for Science, Technology, Innovation, and Training
Enterprises may allocate up to 20% of taxable income to establish funds for science, technology, innovation, and digital transformation, used under a product-based mechanism.
Research and development costs are doubled when calculating corporate income tax.
The state provides free digital platforms and accounting software for small, micro enterprises, and business households.
A program to train 10,000 CEOs by 2030.
Free legal, management, accounting, and tax consultancy services for small enterprises.
7. Support for Medium, Large, and Pioneering Enterprises
Expanding private enterprise participation in national priority projects (high-speed railways, cutting-edge industries, digital infrastructure, defense) through targeted orders, restricted tenders, designated contracts, or public-private partnerships.
A program to develop 1,000 pioneering enterprises in science, technology, innovation, and green transformation.
The “Go Global” initiative supports international market expansion with services like funding, technology, branding, logistics, legal aid, and dispute resolution.
8. Implementation Provisions
The resolution takes effect from its approval date (May 17, 2025, at 02:47 PM +07).
The government, courts, prosecution, and local authorities are responsible for implementation, ensuring feasibility and efficiency.
By December 31, 2025, review and reduce at least 30% of administrative procedure time, compliance costs, and business conditions; address inconsistencies between central and local levels.
By December 31, 2026, refine laws on land, planning, and investment to align with Resolution 68-NQ/TW dated May 4, 2025.
Protect officials following proper procedures without personal gain; reward achievements, and penalize corruption or harassment.
Conclusion
Resolution 198/2025/QH15 is a significant driver for the robust growth of the private economic sector, particularly startups and small/medium enterprises. With policies on finance, land, technology, and training, it not only fosters domestic development but also lays the groundwork for Vietnamese enterprises to compete regionally and globally, contributing to a sustainable economy.
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