Vietnam Boosts Private Economy With Constitutional Changes

New policies taking effect in May 2025 include voluntary supplementary pension insurance and stricter administrative penalties for sectors such as marriage, family, and electricity. The Advance Payment Insurance Law defines advance payment insurance as a non-mandatory insurance type. Under the new regulation, a citizen's lifelong academic record number will be integrated with their personal identification number via the VNEID application. The decree aims to provide a standardized framework for managing educational data. Supplemental English language instruction that is not part of the core curriculum will not be subject to tutoring regulations. changes in the recognition and policy for the individual economy have been implemented following the enactment of Constitutional Article 68. The new policies elevate the individual economy to a driver of the national economy, shifting from a supplementary role. The decision said autonomous economic development, allowing businesses freedom to operate in any sector not prohibited by law, with restrictions only for genuinely necessary reasons. This simplification of fiscal regulations and reduction of business conditions is a long-awaited change for enterprises seeking clear, fair, and predictable management. Following the implementation of Constitutional Article 68, Vietnam has seen changes in the recognition and policy towards the private economy. The government aims for approximately 20 million businesses by 2030, with the private economy contributing 55-58% of GDP. Current challenges for small businesses include lack of capital, poor management, and financial opacity.