Hanoi: The Vietnamese National Assembly has approved a resolution aimed at accelerating the private economic sector’s growth by implementing a series of mechanisms and policies. These measures are designed to provide support in critical areas such as credit access, land use, and tax incentives.
According to Namibia Press Agency, the resolution includes significant tax exemptions and reductions for small and medium-sized enterprises, startups, and venture capital management companies. Specifically, SMEs will be exempt from corporate income tax for three years following their initial business registration. Startups and venture capital firms will benefit from a two-year income tax exemption, followed by a 50 percent tax reduction over the subsequent four years.
The government reports that the private sector is a vital component of Vietnam’s economy, contributing around 51 percent to the nation’s gross domestic product and over 30 percent of state budget revenue. The new policies align with Vietnam’s goal of having two million private enterprises and at least 20 large Vietnamese companies integrated into global value chains by 2030, as outlined in a Politburo resolution issued earlier this month.