Vietnam private economy resolution: what it means for firms

Vietnam private economy resolution 68-NQ/TW is a Politburo policy paper, signed on 4 May 2025, that names private business the most important driver of the national economy. It sets goals for the end of this decade and for 2045. It does not change any law by itself. Laws and decrees must follow.

What the resolution is

Resolution No. 68-NQ/TW comes from the Politburo, the top decision body of the Communist Party of Vietnam. Party General Secretary To Lam signed it on 4 May 2025. It covers the development of the private economic sector.

A Party resolution sets direction. It is not a law passed by the National Assembly. One law firm note calls it politically binding, since it comes from the Party's highest decision body. It points the way for the Government and the legislature to follow.

The text says private business, along with state and collective business, plays a core role in building an independent and self-reliant economy. It calls fast, sustainable and high-quality private growth both an urgent priority and a long-term strategic task.

Sources: Government News, 5 May 2025, Private economy defined as most important driving force (en.baochinhphu.vn); Conventus Law, 16 May 2025, Vietnam's Resolution 68 and the future of doing business (conventuslaw.com).

Where the private sector stands today

The resolution gives a snapshot of the sector. It counts more than 940,000 registered enterprises and over 5 million household businesses. It says the sector brings in about 50 percent of GDP and over 30 percent of state budget revenue. It also says the sector employs about 82 percent of the workforce.

The text is frank about weak spots. Most firms are micro, small or medium in size. Their technology, innovation, productivity and competitiveness are generally low. Links with state-owned and foreign-invested firms are weak. Firms also struggle to reach resources and incentives, and their running costs stay high.

The Politburo blames three main causes. The first is an incomplete view of what the private sector does for the economy. The second is gaps in the legal and policy framework. The third is weak protection of property rights and business freedom.

Sources: Resolution No. 68-NQ/TW of the Politburo, 4 May 2025, English translation, sections I and II (aslgate.com); Government News, 5 May 2025 (en.baochinhphu.vn).

The targets for this decade and 2045

The resolution sets numbers. By the end of this decade, it aims for the private sector to be the most important driver of the economy and a leader in science, technology, innovation and digital change.

• 2 million active enterprises, or 20 firms per 1,000 people.
• At least 20 large private firms that take part in global value chains.
• Private sector growth of 10 to 12 percent a year.
• A 55 to 58 percent share of GDP.
• A 35 to 40 percent share of state budget revenue.
• An 84 to 85 percent share of the workforce.

It also aims for innovation and digital strength among the top three in ASEAN and the top five in Asia. Looking to 2045, it wants at least 3 million enterprises and a private share of GDP above 60 percent.

Sources: Resolution No. 68-NQ/TW of the Politburo, 4 May 2025, English translation, section II (aslgate.com); Government News, 5 May 2025 (en.baochinhphu.vn).

Rights, land, credit and criminal risk

For firms, the rights language matters most. The resolution says private businesses may operate in any area the law does not prohibit. Limits must rest on clear legal grounds such as national defence, public order or public health. It says private firms should compete equally with other sectors for capital, land, technology, people and data.

It also asks officials to drop bias against private business. A National Assembly deputy and economist, Phan Duc Hieu, told the state news agency that the text aims to remove bureaucratic obstacles and improve access to land, finance, premises and skilled people. He added that this holds only if the resolution is carried out well.

A second theme is criminal risk. Law firm analysis says the resolution tells enforcers to use civil and administrative remedies first. Criminal charges would be kept for clear violations. In unclear cases, the lean should be toward protecting lawful business.

Sources: Government News, 5 May 2025 (en.baochinhphu.vn); Vietnam News Agency, 24 May 2025, Politburo's resolution on private sector development hailed by business community (en.vietnamplus.vn); Conventus Law, 16 May 2025 (conventuslaw.com).

Fewer rules and lower costs

On red tape, a Ministry of Finance official said the resolution requires every business condition to be made public. It ends the habit of ministries adding their own extra conditions. Only a few areas, linked to defence, security and public health, may keep special ones.

The resolution also sets a cost target. By 2025 it wants a review that removes needless business conditions and overlapping rules, and a cut of at least 30 percent in processing time, compliance costs and business conditions. It also says the lump-sum tax for household businesses should end by next year.

These points are goals, not finished rules. A law firm writing about the text advises firms to expect clearer laws, faster procedures and tax changes, then to watch how quickly they arrive.

Sources: Vietnam News Agency, 24 May 2025 (en.vietnamplus.vn); Conventus Law, 16 May 2025 (conventuslaw.com).

What firms should watch next

The resolution is a signal, not a switch. Three things are worth tracking. First, new or amended laws and decrees that turn the text into rules. Second, how fast local offices change daily practice on licences and conditions. Third, whether credit and land access improve for small and medium firms, which are most of the sector.

Business leaders have welcomed the text. The head of a large commercial bank said firms also need suitable capital sources and reliable digital payments. That points to follow-through in banking and finance, not just in the Party text.

For owners and managers, the plain advice is to read the rules that apply to their own sector as they appear. Keep records in order. Treat the targets as direction, since they depend on action by the Government and the National Assembly.

Sources: Vietnam News Agency, 24 May 2025 (en.vietnamplus.vn); Conventus Law, 16 May 2025 (conventuslaw.com).