Vietnam eases licensing rules, extends tax relief to spur private sector growth

The measures, many taking effect from Wednesday, reflect a broader government effort to accelerate private-sector development as a central driver of economic growth.

The government has reduced the number of conditional business lines to 142 from 198, removing 56 regulated activities in one of the most extensive recent revisions of Vietnam’s business licensing framework.

The changes are intended to simplify market entry conditions for private firms, streamline regulatory oversight, and eliminate overlapping or outdated licensing requirements that have added costs for businesses.

Despite the reductions, Vietnam continues to maintain conditional licensing for petroleum trading, securities, lotteries, telecommunications, pharmaceuticals, medical devices, real estate, civil aviation, rail transport, publishing, and cybersecurity-related services.

Other sectors that remain under conditions include rice exports, automobile manufacturing, karaoke and entertainment services, casino and prize gaming operations, vocational education, auditing, legal services, and construction surveying.

The updated framework also consolidates several categories into broader regulatory groups.

Gaming activities such as casinos, betting, and electronic prize games for foreigners are now grouped under a single prize gaming category, while several environmental, agricultural, and data-related services have been merged into unified licensing structures.

The regulatory overhaul forms part of a wider policy shift to improve conditions for Vietnam’s private sector.

Tax relief to support business cash flow

In parallel with regulatory easing, the government has introduced a large-scale tax deferral program covering an estimated VND125 trillion (US$4.75 billion) in value-added tax, corporate income tax, personal income tax, and land rental payments during 2026.

The Ministry of Finance said the policy targets enterprises, household businesses, and individual businesses operating in 43 sectors, including agriculture, fisheries, food processing, manufacturing, and publishing, with small and micro enterprises also included.

Under the program, value-added tax (VAT) payments for eligible firms can be delayed by up to five months, while corporate income tax provisional payments for the second and third quarters may be deferred by up to three months.

Land rental payments due in early 2026 can also be postponed by five months.

The measure is intended to ease short-term liquidity pressure on businesses and support private-sector activity amid continued global economic uncertainty.

The tax deferral does not apply to import-related VAT.

Firms operating across multiple sectors can qualify for full deferral benefits if at least one of their activities falls within the eligible list, a provision designed to broaden support for diversified private-sector operations.

Vietnam has implemented similar tax relief measures in recent years, with deferred payments reaching VND95.2 trillion ($3.62 billion) in 2023, more than VND83 trillion ($3.16 billion) in 2024, and about VND114.8 trillion ($4.37 billion) in 2025, according to official data.

Legal reforms to reduce business barriers

Prime Minister Le Minh Hung has also directed ministries to accelerate a broader overhaul of Vietnam’s legal framework, instructing officials to remove regulatory bottlenecks and simplify business conditions to support private-sector expansion.

At a government lawmaking session in June, he said institutional reform must ensure that the legal system functions as a driver of development rather than an administrative barrier, with a focus on reducing procedures and compliance costs for private firms.

He called for stronger decentralization, faster processing of investment-related approvals, and a shift from pre-approval mechanisms toward post-inspection systems in selected sectors, particularly agriculture and environment.

The prime minister also urged ministries to avoid introducing new administrative requirements while removing existing ones, warning that regulatory simplification must not be offset by new technical barriers that increase compliance burdens on private businesses.

He said legal reforms should be closely aligned with Vietnam’s growth objectives, including the goal of achieving higher long-term growth.

He emphasized that ministries would be held accountable for the pace and quality of legislative changes.

The combined package of licensing reform, tax relief, and legal restructuring signals a shift toward a more enabling environment for private businesses.