Private sector to benefit from new resolution

Duong Van Bac, CEO, Novaland

Duong Van Bac, CEO, Novaland

To support the recovery and sustainable growth of real estate enterprises and contribute to the private sector’s development, we propose the following key solutions.

Resolving legal obstacles and accelerating approval processes. Prolonged legal bottlenecks raise development costs, inflate property prices, and reduce profitability. Streamlining procedures and speeding up approvals will lower costs, ease financial pressure, unlock funding sources, and prevent the waste of resources. Only with clear legal pathways can real estate businesses recover and grow effectively.

Facilitating participation in infrastructure and satellite city development. The planned merger of provinces will create new urban development spaces, stimulating investment and population shifts. Local authorities should enhance planning, encourage strategic partnerships, and enable capable real estate firms to contribute to infrastructure and satellite city projects. Access to affordable land will help reduce housing prices and improve affordability.

Reforming land valuation and land use fee policies. Land costs are a major driver of high property prices. Current market-based valuation methods raise long-term costs. A more reasonable, area-specific approach would help developers better control input costs and offer more affordable housing to the public.

Jack Nguyen, CEO, InCorp Vietnam

Jack Nguyen, CEO, InCorp Vietnam

One of the most significant changes is a move from an approval-based system to one centred on declarations and post-audit oversight, allowing businesses to launch operations without waiting for upfront government clearance. The country’s Bankruptcy Law will also be simplified to reduce the stigma around failure and encourage risk-taking.

To further ease business formation, the government plans to scrap the business licence tax and provide corporate income tax exemptions for small- and medium-sized enterprises during their first three years. On the financing front, banks will be encouraged to base lending decisions on cash flow and intangible assets like intellectual property, rather than traditional collateral.

The resolution also includes a national programme to train 10,000 CEOs, generous research and development tax deductions, and incentives for corporations supporting startups through tech transfer and training.

Crucially, the government is introducing a new evaluation system for entrepreneurs, measuring not just profit, but legal compliance, job creation, and social contributions.

This new directive is both transformative and evolutionary. Vietnam now clearly recognises the importance of private enterprises, pinpointing is as the leading economic sector in the country, contrary to past dependence on state-owned enterprises.

By linking business growth with national identity, Vietnam is signalling a bold new chapter in its economic story, one where private enterprise is both an engine of progress and a partner in building a more inclusive, innovative future. This new directive is a positive indication to the foreign business community that Vietnam is transforming and reforming to modern business practices, which can only be a welcome signal to the foreign community and spur on new investments in Vietnam.

Mai Huu Tin, chairman of Binh Duong Business Federation

Mai Huu Tin, chairman of Binh Duong Business Federation

The most effective and immediate solution to improve the business environment is the implementation of e-government.

This approach can quickly remove administrative barriers that hinder business development. We should adopt global best practices and apply e-government to critical issues, particularly eliminating unnecessary “ask-give” procedures and outdated permit processes.

Two key examples illustrate this. First, we currently require permits for every small construction project. With thorough and comprehensive planning, including architectural guidelines, this step could be eliminated. Similarly, areas like fire safety and environmental compliance could rely on clear standards, allowing businesses and citizens to self-declare compliance through a one-time registration, avoiding time-consuming and costly approvals.

Second, many real estate projects are delayed because land use fees haven’t been calculated, blocking sales and progress. This data exists and can be consolidated using technology to create quarterly land value benchmarks by region. An automated pricing system would reduce officials' fear of responsibility and accelerate decision-making. E-government and technology make all of this achievable.

Resolution 68 is a new dawn for Vietnam’s private sector The Politburo on May 4 issued Resolution No.68-NQ/TW, a landmark directive poised to redefine the landscape for private enterprise in Vietnam.

Commitments made to transparency and innovation Vietnam has now set bold targets for its private sector.

Resolution 68: Unlocking Vietnam’s private sector A new, sweeping policy directive could mark the most significant shift in the country’s economic orientation since the economic reforms of the 1980s. Richard D. McClellan, founder of RMAC Advisory, has a look at Vietnam's bold vision for private sector development, foreign investment, and more.