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The governing body NA passes resolution endorsement for the private sector

Parliament Passes Measure to Encourage Private Business Growth through Tax Incentives, Inspection Reform, and Green Loan Discounts on Weekend.

Lawmakers approved a resolution in the National Assembly on Saturday, aiming to stimulate growth in...
Lawmakers approved a resolution in the National Assembly on Saturday, aiming to stimulate growth in the private sector. Key measures include tax reductions, revising inspection procedures, and subsidies for eco-friendly loans.

The governing body NA passes resolution endorsement for the private sector

Title: Vietnam's National Assembly Approves Resolution Boosting Private Sector Economy: Key Highlights

Unleashing the Private Sector's Potential

In a move to bolster the economy, Vietnam's 15th National Assembly has recently given the green light to a resolution supporting the private sector. Here's a lowdown on the key measures designed to foster a thriving business landscape.

Boosting Business Growth: The resolution, passed with an impressive 99.7% vote, aims to set the stage for enhancement of the investment and business environment, increased access to resources, and promotion of technology, innovation, digitization, and green transformation[1][3]. Furthermore, the resolution looks to expand private enterprises' roles in national key projects.

Tax Incentives: To kickstart growth, small and medium-sized enterprises (SMEs) will reap the benefits of a corporate income tax exemption for three years from their business registration date[4]. Meanwhile, enterprises engaged in innovative start-up activities can anticipate corporate income tax exemptions for two years and a 50% reduction for the subsequent four years[4].

Financial Assistance: As part of the resolution, private enterprises, household businesses, and individual businesses will receive a 2% annual interest subsidy from the government on loans used for green and circular projects or projects adhering to the environmental, social, and governance (ESG) standards framework[4].

Inspection Regulations: In an effort to streamline the inspection process, each enterprise, household business, or individual business will face a maximum of one annual inspection, unless there's evidence of clear violations[1]. The resolution emphasizes stricter penalties for abuses of the inspection process and aims to shift from pre-inspection to post-inspection, enhancing inspection efficiency[1]. Additionally, the resolution moves from excessive licensing and certification to publishing business conditions and post-inspection, with a few exceptions for international-regulation-bound areas[1].

Effective Date: The resolution took effect on May 17, 2025[1]. The policy is primarily focused on five key areas: improving the business environment, facilitating access to land resources, providing financial support, assisting with science, technology, innovation, and nurturing medium and large-scale enterprises[3].

Sources:1. VNS2. VNA/VNS Photo3. Vietnamese government press release (unnamed source)4. Enrichment data, including additional details and policy interpretations not explicitly mentioned in the source material.

The National Assembly approves the resolution to support the private sector economy on Saturday. - VNA/VNS Photo

  1. The resolution, approved by Vietnam's National Assembly, aims to boost the economy by enhancing the private sector through focusing on key areas like improving the business environment and facilitating access to resources.
  2. To encourage growth, small and medium-sized enterprises (SMEs) will receive tax incentives such as corporate income tax exemptions, while innovators and start-ups are eligible for extended tax breaks.
  3. Private enterprises, household businesses, and individuals will also benefit from financial assistance in the form of a 2% annual interest subsidy from the government for green and ESG adhering projects.
  4. Stricter inspection regulations are included in the resolution, with a maximum of one annual inspection and emphasis on post-inspection, aiming to streamline the process and decrease violations.
  5. The resolution will foster advancements in technology, innovation, and science, with a focus on green transformation and medium to large-scale enterprise development, as Vietnam moves towards a thriving and sustainable business landscape.

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