Resolution 68: turning point for Vietnam's private sector or empty promises?

Resolution 68: turning point for Vietnam's private sector or empty promises?

On May 31, 2025, Pham Tan Cong, Chairman of the VCCI, spoke at a government-organized discussion on Resolution 68, a new measure considered by many to be a significant step forward for the Vietnamese economy. This resolution aims to protect private property rights and promote fair competition. Discussions have revealed a positive mood in the business community as companies hope the resolution addresses challenges such as the criminalization of investments.

Resolution 68 was formulated in response to growing concerns in the private sector and comes in a context of rapid growth but faced with legal uncertainties and a lack of resources. Mr Cong stressed that many major obstacles, including institutional and managerial bottlenecks, need to be addressed. Currently, investment projects using land must comply with at least 12 laws and over 20 administrative regulations and circulars, which often leads to lengthy approval processes.

Hurdles in the investment process

In current practice, typical land use investment projects require between 18 and 24 months under expedited procedures and up to three years under normal circumstances for approvals. This creates significant delays and ambiguities that hinder the investment process. However, the government, under the leadership of the Prime Minister, has shown the determination to reform these administrative procedures and overcome the psychological and cultural barriers within the business community.

Nguyen Quoc Hiep, chairman of the Vietnam Contractors Association, called for a redefinition of the role of companies: they should be viewed as service objects rather than management objects. Mr Hiep suggested that municipalities should hold regular meetings with companies to collect suggestions on how to improve administrative procedures.

New legal measures of Resolution 68

Resolution 68 is not only a response to internal challenges, but is also closely aligned with China's legal reforms. Civil law measures are given priority over criminal proceedings and retroactive laws are prohibited. An important goal of these measures is to create a fairer playing field for small and medium-sized companies. The reforms could also theoretically help strengthen control over powerful state-linked companies, but this could pose systemic risks.

Additionally, the Vietnamese government calls on private companies to promote ethical business practices and social responsibility, while also holding public officials responsible for preventing corruption. The question remains whether Resolution 68 represents genuine legal reform or merely serves to protect existing power structures.

While the reforms could boost business confidence in the domestic market in the short term, the reaction of international investors is crucial. Many foreign investors are closely monitoring the implementation of the resolution to assess whether Vietnam will truly become a reliable location within the “China+1” model and have enough stability and predictability.

In conclusion, Resolution 68 is not only a formal step for Vietnam, but also a test of the government's ability to meet market challenges. The emoji of increased willingness to invest and growth prospects contradicts the existing administrative hurdles that need to be overcome.

Overall, the discussion around Resolution 68 has broken the mentality within the business community and spurred new investments, but whether these reforms will lead to sustainable change is still up for debate. Developments will continue to be closely monitored, both in Vietnam and internationally.

For more information on the details of Resolution 68, visit vietnam.vn and asiatimes.com.