THE HANOI TIMES — Vietnam is still home to fewer than one million active enterprises, far short of the two million target set for 2030 under the Politburo’s Resolution No. 68, a gap that experts warn requires bold reforms to close.

Recent discussions at the Vietnam Private Sector Forum 2025 highlighted that the “golden key” to unlocking private sector potential lies in a transparent, fair, timely, and pioneering institutional framework. However, they noted a wide gap between policy direction and actual implementation.

One pressing concern is the fear of economic activities being criminalized, which creates deep uncertainty for entrepreneurs when investing, producing, or conducting business.

Experts warned this is a major bottleneck that must be addressed if the private sector is to truly take off.

Highlighting specific barriers, Luu Thi Thanh Mau, Vice Chairwoman of the Vietnam Young Entrepreneurs Association, pointed to complex administrative procedures, the lack of grassroots policy feedback, limited access to resources and a legal vacuum in areas such as digital assets and innovation.

She also noted overlapping and inconsistent laws, cumbersome bureaucracy, and regulatory gaps in emerging sectors like the green transition.

Echoing these concerns, MoMo co-founder Nguyen Ba Diep emphasized systemic challenges facing the private sector, including regulatory and procedural hurdles, uneven infrastructure and ecosystems, difficulties in accessing capital, and limited financial trust in innovative businesses.

For Nguyen Van Khoa, Vice Chairman of the Vietnam Young Entrepreneurs Association, the most pressing issue is human resources capable of operating modern technology.

“It’s not a shortage of people - it’s a shortage of people who can work with data, AI, and digital management systems,” he said.

He urged businesses to invest in internal training and forge partnerships with universities and institutes to develop practical programs.

The vice chairman also called on the government to provide clear, accessible policies to support digital workforce development for small and medium-sized enterprises (SMEs), which make up over 90% of the country’s businesses.

A noteworthy highlight from the forum was the proposal to “bring real life into resolutions” - a call for policies rooted in the realities faced by entrepreneurs.

Breakthrough policies to boost private sector growth

In response to business feedback, the Ministry of Finance has proposed a set of mechanisms and policies to give the private sector a strong boost in the coming years.

The draft decree, which guides the implementation of Resolution No. 198 passed by the National Assembly on May 17, 2025, focuses on land access, tax incentives, support for science and technology, digital transformation and training in human resources and business management.

For the first time, provincial authorities will be required to reserve land in industrial and hi-tech zones for private enterprises, SMEs, and startups, with rental reductions of at least 30%. SMEs and innovation-driven firms may also benefit from reduced rents on public land and buildings, with details set by local authorities.

The decree further proposes two years of corporate income tax exemption and a 50% tax reduction for the following four years for innovative startups. Micro and household businesses would be given free access to digital platforms and accounting software.

The ministry acknowledges that these support measures may reduce revenue in the short term but emphasizes that, in the long run, they will expand production and contribute more to the economy.

The reforms outlined in the latest draft decree guiding the implementation of Resolution No. 198/2025 have received broad support from provinces and cities, including Hanoi.

However, the Vietnam Chamber of Commerce and Industry (VCCI) has urged the Ministry of Finance to clarify which businesses qualify for public land rent reductions, along with detailed procedures and guidance for local authorities to avoid confusion during implementation.