Resolution No. 68 not only enhances the legal and social status of private enterprises but also affirms their pioneering role in innovation, technology application and promoting national digital transformation

The historical journey of the private economy

To fully understand the significance of this transformation, it is necessary to look back at the arduous but proud development path of the Vietnamese private economic sector. Before the 1986 renovation, the economy operated under a centrally planned model, in which state-owned enterprises were the pillars. The private economy, if it existed, was only on a small scale, under strict control and was often seen as a symbol of capitalism, not recognized as an economic driving force but only as a supplementary component for the state sector.

After the renovation, the market mechanism was gradually recognized, opening the runway for the private economic sector to take off. By the late 1990s, tens of thousands of private enterprises were born, contributing increasingly to growth and poverty reduction. However, the position of this sector is still modest, often facing barriers in accessing resources (capital, land), complicated administrative procedures and social prejudices.

Resolution No. 68 created a decisive turning point, fundamentally changing the perception of the private economy. By officially recognizing this sector as an important development partner, the Resolution not only enhances the legal and social status of private enterprises but also affirms their pioneering role in innovation, technology application and promoting national digital transformation.

Changing thinking from strict management to creative companionship

The shift from supplementary component to development partner in Resolution No. 68 is a clear demonstration of the maturity in the leadership and economic management thinking of our Party and State. Instead of considering private enterprises as objects that need to be strictly managed and controlled, the State now sees this sector as an equal partner, sharing responsibility and accompanying the creation of development. This is a strong shift from the thinking of “management, imposition” to “support, creation and companionship.”

This change not only has profound theoretical significance but also has great practical value. It recognizes the central role, the main driving force of the economy, especially small and medium enterprises as a dynamic, pioneering force in creating jobs, promoting innovation and enhancing national competitiveness.

At the same time, promoting and honoring the entrepreneurial spirit, considering them as “warriors on the economic front”, gradually eliminating prejudices, building a culture of respecting entrepreneurs and strongly arousing the desire to start a business and get rich legitimately in the whole society.

To turn the development partner perspective into a vivid reality, Resolution No. 68 sets out a series of breakthrough support policies, creating the most favorable environment for private enterprises to break through: Reducing administrative burdens with the goal of reducing 30% of time and costs of complying with administrative procedures by 2025, strongly shifting from the “pre-inspection” to “post-inspection” mechanism, helping enterprises free up resources for core business activities.

Expanding access to resources: Ensuring that localities reserve suitable industrial land for small and medium enterprises (at least 20 hectares or 5% of clean land area) with a 30% reduction in land rent for 5 years. Developing specialized credit channels for small and medium enterprises with flexible guarantees and interest rate support. Financial incentives: Exemption from corporate income tax for 3 years for newly established enterprises, abolishment of business licensing fees, exemption from factory rent for the first 3 years.

The Party and the State also encourage innovation with a policy allowing enterprises to deduct 200% of research and development costs when calculating taxes, and allocate up to 20% of pre-tax profits to the enterprise's science and technology development fund. In addition, the legal environment is fair and transparent with a limit of inspection and audit of no more than once a year (except in cases of clear violations), prioritizing handling of business violations by administrative, civil, and economic measures instead of criminalization.

These specific and strong policies demonstrate the State's consistent commitment to building a true partnership, where enterprises are maximally supported to promote their internal strength and contribute to common development.

The strategic transformation and synchronous policies in Resolution No. 68 have been creating strong momentum for the economy, promoting the spirit of entrepreneurship, innovation and deep and wide international integration. With an aspirational vision for 2030 in terms of the number of enterprises and GDP contribution, the Resolution strengthens confidence and enhances the position of Vietnam's business environment.

However, to realize this goal, it is necessary to overcome challenges in policy implementation and change social awareness. Resolution No. 68 is a call for the entire Party, the entire people and the business community to unite to create the future. The transition to a development partnership model opens a new era of close cooperation between the State and businesses for a prosperous and sustainably developed Vietnam by 2045.

The opportunity has come, requiring drastic, creative and committed actions to turn potential into brilliant reality, affirming Vietnam's position in the international arena./.

Reported by Truc Bach

Translated by NT