Vietnamese Gov't to submit strong private sector support to parliament

THE HANOI TIMES — The Vietnamese Government is set to submit a draft resolution to the National Assembly during its 9th session, proposing special policies aimed at accelerating private sector growth and tackling urgent economic challenges.

Prime Minister Pham Minh Chinh referred to the resolution at a meeting with ministries and agencies on May 7. He stressed the urgent need to translate Party Resolution 68 on boosting the private sector into concrete policies and legal frameworks to ensure timely implementation.

The Politburo issued Resolution 68 on May 5, reaffirming the private sector as one of the main drivers of the economy and a leading force in science, technology and innovation. The Ministry of Finance is currently leading the drafting of the National Assembly resolution on a number of specific mechanisms and policies to support private sector development.

"Given the time constraints, the high expectations and the complexity of the content, the resolution must take a feasible and focused approach," the prime minister said.

The current session of the National Assembly is scheduled to end on June 30. According to the Ministry of Finance, there are three groups of tasks and guidelines in Resolution 68 that need to be translated into legislation.

The first group includes urgent tasks and solutions that fall under the jurisdiction of the National Assembly but have not yet been codified or are not included in the current legislative agenda. For these, the ministry proposes a separate resolution focusing on 10 specific mechanisms and policies.

The second group contains eight specific mechanisms and policies that require immediate revision and fall within the scope of the legislation being reviewed during this session. The ministry recommends that they be reviewed and included in the relevant bills.

The third group consists of longer-term, less urgent policy directions that require further research and evaluation. These will be included in the government's draft action plan, with assignments to relevant ministries and agencies for phased implementation.

In his closing remarks, Chinh urged the drafting agency to focus on issues that businesses and citizens are most likely to expect, particularly urgent, actionable items that do not require large resource commitments. He emphasized the need to prioritize high-impact reforms that serve as catalysts, levers and anchors to unleash resources and productive capacity.

Resolution 68 sets an ambitious goal for Vietnam to have 2 million registered enterprises by 2030, or 20 enterprises per 1,000 people, including at least 20 large enterprises participating in global value chains.

To achieve this, the prime minister emphasized that administrative procedures must be fast, simple and inexpensive. In particular, business registration, dispute resolution, and bankruptcy procedures should be streamlined. He also called for policies that support the formalization of household businesses into enterprises, help small firms grow into larger ones, and facilitate the expansion of already large companies.

The prime minister also called for the transposition into law of the provisions of Resolution 68 on property rights, business freedom, fair competition, and the role of public-private partnerships.

Local governments, ministries and project owners will be given greater autonomy in awarding projects to companies under the principles of ensuring quality, meeting deadlines, avoiding cost overruns and preventing corruption and waste. While procedures will be streamlined, there must also be stronger oversight and inspection mechanisms.

A key feature of the draft resolution is the distinction between administrative, civil and criminal liability, including the distinction between corporate and individual liability for violations of law. This is intended to create legal certainty for investors and companies.

Specifically, Resolution 68 advocates the prioritization of administrative and civil measures over criminal prosecution in economic cases, giving companies and business people the opportunity to remedy violations and compensate for damages. Where the law allows, criminal charges should be avoided.

Even in cases where criminal prosecution is warranted, economic remedies should take precedence and serve as the basis for further legal consideration. Importantly, the resolution emphasizes that retroactive application of laws should not result in adverse consequences for business.

In cases where the evidence is insufficient or unclear, investigative bodies must conclude cases expeditiously to avoid reputational damage or disruption of business operations. The principle of the presumption of innocence must be upheld throughout the investigation and adjudication process.