Vietnam's New Private-Sector Economic Development Policies for 2025-2026: Impact on Investors and the Preferential Measures Explained
This article analyzes Vietnam's private economic policy from 2025 onward, introducing groundbreaking incentives for private enterprises and startups, including a three-year corporate income tax exemption, priority land allocation in industrial parks, and support for digital transformation (DX).
01 - A New Driving Force for Vietnam's Economy: A Groundbreaking Policy Shift Toward Private-Sector Development
The new policy framework — represented by Resolution No. 68-NQ/TW, Resolution No. 198/2025/QH15, and Decree No. 20/2026/ND-CP — can be summarized around three pillars: redefining the role of the private economy, dismantling institutional barriers, and establishing a groundbreaking incentive regime.
02 - Policies on the Investment and Business Environment
The government has committed to cutting administrative procedure processing times by at least 30%, reducing compliance costs by at least 30%, and eliminating at least 30% of investment and business conditions. The number of conditional business lines will be reduced by 38, shifting the regulatory approach from a licensing regime to one based on published conditions with post-entry inspection.
03 - Tax Incentives and Financial Support Policies
Newly established SMEs are exempt from corporate income tax for three years from incorporation. Startups and venture capital funds receive a two-year exemption followed by a 50% reduction for a further four years. Gains from the transfer of equity interests in innovative enterprises are tax-exempt. Green projects receive an interest subsidy of 2% per annum on borrowings.
04 - Policies on Securing Land and Production Sites
Newly established industrial parks are required to reserve an average of 20 hectares of land each. High-tech enterprises, SMEs, and startups receive a reduction of at least 30% on sub-lease land rent for the first five years after moving in.
05 - Support for Innovation, Digital Transformation, and Global Expansion
A "Go Global" program is being rolled out, encompassing international legal support, global fundraising, global branding, and the development of international distribution networks.
06 - Impact Assessment: Vietnam's Economic Transformation and the Challenges Ahead
On the positive side, the reforms are expected to accelerate GDP growth and encourage entrepreneurship through reduced administrative burden. At the same time, risks remain, including disparities in enforcement capacity among local authorities, overlap with specialized legislation, insufficient public awareness of the new policies, and limits on productivity gains.