This is one of the key policy changes outlined in Resolution 68 on private sector development, recently issued by the Politburo.

According to the resolution, by 2030 Vietnam aims to have 2 million registered enterprises, equating to 20 businesses per 1,000 people, and at least 20 large companies integrated into global value chains.

The private sector is expected to achieve an average annual growth rate of 10-12%, contributing approximately 55-58% of GDP and about 35-40% of total state budget revenue.

Looking ahead to 2045, the vision is for Vietnam’s private sector to develop rapidly, sustainably, and competitively, with active participation in global production and supply chains. The country aims to have at least 3 million operating businesses by then, contributing over 60% to GDP.

A standout directive in the resolution involves providing practical and effective support for micro and small enterprises and household businesses.

The government will review and refine the legal framework for individual business operations, minimize disparities, and create favorable conditions in management structures and financial-accounting regimes to encourage household businesses to transition into formal enterprises.

There will be a strong push to digitize, increase transparency, simplify, and enhance compliance for regulations on accounting, taxation, and insurance - aimed at motivating household businesses to adopt enterprise models. The flat-rate tax system for household businesses will be abolished no later than 2026.

Free access to digital platforms, shared accounting software, legal consulting services, and training in business management, accounting, taxation, human resources, and law will be provided to micro and small businesses, household businesses, and individual entrepreneurs.

Resolution 68 also calls for the effective implementation of the national financial inclusion strategy, enhancing access to and use of financial services for micro and small businesses, especially those led by youth, women, disadvantaged groups, ethnic minorities, and people in remote or border regions and islands. Inclusive and socially impactful business models will also be prioritized for support.

Nguyen Le