Vietnamese businesses are excited and hopeful following the issuance of Resolution 68 of the Politburo on private economic development.
In a conversation with Dân Trí reporters, National Assembly deputy Nguyễn Văn Thân (Chairman of the Vietnam Association of Small and Medium Enterprises) expressed his joy and excitement about Resolution 68.
A New Door Opens, Fostering Confidence
“From the moment we heard about the resolution, the business community, especially SMEs, eagerly awaited it. And when the resolution was officially released, we saw that all of our long-held wishes were addressed,” Mr. Thân stated, highlighting the resolution’s specificity and practicality.
The resolution tackles current issues such as science and technology, innovation, digital transformation, and even sensitive topics like cryptocurrencies, without criminalizing economic relationships. It creates an environment where businesses can thrive within the legal framework, with the spirit of “if the state doesn’t prohibit it, the business can do it.”
“Many things we’ve been advocating for have been clearly outlined by the Politburo in this resolution. Businesses are very pleased with the Party’s guidance, which feels like a new door has opened, building confidence for businesses to operate,” Mr. Thân added.
The government and National Assembly are working diligently to translate these broad guidelines into specific legal regulations, while local authorities are actively engaging with businesses to implement investment projects.
One of the first breakthroughs of Resolution 68, Mr. Thân pointed out, is the dismantling of preconceived notions about private enterprise. For the first time, the Politburo identifies private enterprise as the most important driving force of the economy, eligible for numerous incentives such as tax exemptions, preferential loans, and land access policies.
National Assembly deputy Nguyễn Văn Thân, Chairman of the Vietnam Association of Small and Medium Enterprises (Photo: Mạnh Quân).
Crucially, the resolution addresses business concerns regarding violations, which is considered a breakthrough.
Resolution 68 explicitly states that for civil, administrative, and economic violations, administrative, civil, and economic measures should be prioritized.
If legal regulations allow for both criminal and non-criminal resolutions, the resolution mandates a resolute avoidance of criminal charges. If criminal charges are unavoidable, economic measures to rectify the consequences are prioritized and form the basis for further considerations and resolutions.
“Businesses have high expectations for these groundbreaking orientations, as they will help reduce legal risks, create a safer business environment, and provide businesses with greater peace of mind,” Mr. Thân noted.
Addressing the significant issue of interaction between government agencies and businesses, Mr. Thân emphasized that the Politburo’s forward-looking approach demands the complete elimination of the “ask-and-receive” system.
He lamented the current situation where businesses, especially SMEs, must queue and seek approvals from government departments. The new approach prioritizes the service-oriented mindset of government agencies and meeting the needs of businesses, allowing businesses to operate without needing to ask anyone for favors.
Significantly, Mr. Thân highlighted that Resolution 68 on private economic development is accompanied by three other crucial Politburo resolutions: Resolution 57 on breakthroughs in science and technology development, innovation, and national digital transformation; Resolution 66 on reforming lawmaking and law enforcement; and Resolution 59 on international integration in the new context.
“These four critical resolutions are considered the strategic quartet to lead the nation into a new era,” Mr. Thân said.
Millions of Businesses Anticipate a New Era of Confidence
Resolution 68 sets an ambitious goal of 2 million businesses by 2030 and 3 million by 2045, a significant increase from the current approximately 960,000 businesses and 5 million individual businesses nationwide.
“Achieving this goal is challenging and heavily dependent on implementation. If the Party’s direction is effectively translated into action, fostering trust and enthusiasm among millions of businesses to grow into companies, I believe the Politburo’s goal is completely achievable,” Mr. Thân assessed.
He noted that reaching this goal would create millions of jobs, increase productivity, competitiveness, boost government revenue, and contribute to Vietnam’s sustainable economic development, becoming a significant player in the global value chain.
Resolution 68 also aims for at least 20 major enterprises to participate in the global value chain by 2030. “This is a very appropriate and effective direction. We need leading enterprises. The government should focus on these enterprises to enable them to absorb capital, undertake large national projects, and guide other businesses,” the chairman of the SME association stated.
Unlike previous approaches, Mr. Thân believes that large enterprises, SMEs, and FDI businesses should work together to develop simultaneously.
Stagnation Equals Elimination for Businesses
Meanwhile, Mr. Phan Đức Hiếu, a National Assembly representative specializing in economic and financial affairs, highlighted key messages from Resolution 68.
Firstly, reducing bureaucracy through streamlining business licensing and simplifying administrative procedures, and fundamentally shifting from a retrospective to a proactive approach to policymaking and business freedom.
Secondly, enhancing protection of private enterprises with regulations on property rights, business freedom, and equal competition.
The resolution clarifies the delineation of criminal, civil, administrative, and economic responsibilities, favoring civil and administrative solutions for economic disputes to minimize legal risks for businesses and provide chances for rectification.
Importantly, the resolution distinguishes between the assets, rights, and responsibilities of individuals and legal entities in handling violations. Mr. Hiếu noted this crucial aspect, as an individual’s actions don’t always represent a business, preventing individual violations from harming business operations.
Alongside proactive government measures, Mr. Hiếu emphasizes the need for businesses to develop their own production and business plans in the new context.
“Businesses need to be more open-minded and adapt their management strategies to align with the evolving management philosophy. This enables equal and fair competition. A more open regulatory environment will mean more intense competition; businesses that don’t actively innovate, invest in product and service quality, and adopt new business models face a greater risk of elimination,” Mr. Hiếu cautioned.
National Assembly deputy Trần Hoàng Ngân (Ho Chi Minh City) also suggested specific mechanisms and policies to implement the Politburo’s guidelines, facilitating private sector access to and use of social resources.
While private enterprise significantly contributes to the economy, Mr. Ngân highlighted the importance of fostering large and strong corporations that can lead the industry, competing with global companies in both domestic and international markets.
Resolution 68 assigns the National Assembly Party Committee to review and complete legislation on private economic development and strengthen oversight of its implementation.
The Government Party Committee is tasked with developing policies for the National Assembly to enact during its ninth session and developing an action plan for implementing the resolution. It is crucial to fully implement the Politburo’s policies with specific, achievable, and effective incentives, ideally embodied in a National Assembly resolution on private economic development, during the ninth session.
