Enhancing policies on private sector involvement in public service provision in Vietnam

Enhancing policies on private sector involvement in public service provision in Vietnam (Image from the Internet)

On June 18, 2024, the Government of Vietnam issued Resolution 91/NQ-CP on enhancing policies on private sector involvement in public service provision.

Enhancing policies on private sector involvement in public service provision in Vietnam

To address existing shortcomings and issues in private investment and to continue attracting, expanding investment resources in society, creating favorable conditions for the development of public service activities with higher quantity and quality, while restructuring the state budget, the Government of Vietnam requires ministries, central agencies, and localities to continue implementing favorable policies on land, tax, fees, credit,... based on legal regulations on land, tax, public investment, state budget, state credit, and other related legal documents; to continue reviewing the incentive policies encouraging private investment and private investment sectors to promptly submit proposals for amendments and supplements to the competent authorities to ensure suitability with arising realities, supporting non-public units and investors in participating in investment, enhancing the quality of public services.

To be specific:

- Ministries and central authorities, according to their functions and management areas, shall summarize, evaluate, and review incentive policies for private investment fields and document proposals to supplement incentives to promote private investment in public service provision, including the addition and study of specific regulations on exemption and reduction of land rent different from the preferential levels for investment projects in preferential investment sectors and areas stipulated in point a, clause 1, Article 157 Land Law 2024, and send them to the Ministry of Finance for consolidation and reporting to competent authorities for consideration and decision.

The Ministry of Finance shall study, consolidate policy proposal contents and solutions to report to competent authorities during the amendment and supplementation process of Tax Laws. For contents about land rent exemption and reduction incentives, the Ministry of Finance shall consolidate and submit to the Government of Vietnam for regulations after reporting and consulting the Standing Committee of the National Assembly in accordance with clause 2, Article 157 Land Law 2024. The completion timeline is pursuant to the National Assembly’s legislative, ordinance building program and the Government of Vietnam’s decree building program.

- The Ministry of Natural Resources and Environment is assigned to lead and cooperate with related ministries and central authorities in drafting incentive policies on land stipulated by the detailed decrees of the Land Law 2024 appropriately.

- Ministries managing sectors, fields and the People's Committees of provinces and centrally-affiliated cities shall review, amend, and simplify administrative procedures related to the establishment of non-public units, land allocation, land clearance support, etc., to create favorable conditions for the establishment and effective operation of non-public public service provision units; ensuring that administrative procedures are not further complicated or proliferated.

Enhance international cooperation, leverage aid sources to promote private investment in education, health, science, technology services provision; implement policies encouraging and attracting intellectuals, overseas Vietnamese to return home to participate in teaching, scientific research, medical examination, and treatment, cultural activities, sports competitions, etc.; review and amend mechanisms and policies to allow the private sector to be on equal footing with state enterprises and units in accessing market resources.

More details can be found in Resolution 91/NQ-CP dated June 18, 2024.

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