Hanoi (VNA) – Minister of Finance Nguyen Van Thang outlined measures to achieve the goal of developing two million enterprises by 2030 as laid out in Resolution 68 on private sector development while fielding questions from deputies at the ongoing 15th National Assembly’s 9th session on June 19.

He acknowledged the target represents an important milestone for socio-economic development as well as a demonstration of the country’s aspiration for robust economic growth. However, he admitted formidable challenges like mounting external challenges and enterprises’ weak competitive capacity that require high determination, concerted efforts, and drastic actions.

“In the first five months of the year, a significant number of enterprises withdrew from the market”, he said.

♑ To that end, he outlined a three-pronged framework. The first priority is cultivating a more transparent, efficient, and business-friendly environment, meaning reducing administrative procedures, cutting compliance costs, improving business conditions, removing bottlenecks in investment, land use, and construction, while accelerating digital transformation in management.

The second strategy involves encouraging the country’s five million household businesses to convert into registered firms, he said, adding they represent a goldmine for achieving the target. The ministry is conducting comprehensive review to refine legal framework to narrow gaps between household businesses and formal enterprises in governance, finance, and accounting practices. Besides, the abolition of lump-sum taxation will be carried out from 2026, promoting transparency and professionalisation.

Substantive support initiatives will be put in place such as three-year corporate income tax exemptions, elimination of license taxes, and provision of free digital platforms and accounting software to enhance management capabilities for enterprises, he underscored.

The third solution, he said, focuses on enhancing enterprise competitiveness by prioritising support for access to land, capital, markets, technology, digital transformation, and human resources development. This approach helps businesses improve resilience and adaptability, thus reducing the number of firms retreating from the market.

Deputy Hoang Quoc Khanh from Lai Chau province raised concerns about a newly introduced policy which allows private firms, household businesses, and individual business owners to receive 2% annual interest rate subsidy when they invest in circular and green projects under Resolution 198 on several special mechanisms and policies for private sector development. He pointed out that a similar scheme was launched but saw dismal uptake.

⛎ Thang admitted the shortfalls of the previous policy, laying stress on three solutions for effective implementation of the resolution, namely issuing clear and feasible guidelines, ensuring sufficient and timely funding, and supporting commercial banks in providing enterprise loans at regulated interest rates./.