“Subsidized Interest Rates: Empowering Private Enterprises with 2% Annual Interest Rate Support”

Despite improvements in laws and institutions regarding businesses, the private sector still faces numerous barriers and has yet to achieve a significant breakthrough in terms of scale and competitiveness.

To realize the country’s development goals as set out by the Resolution of the 13th Party Congress and to meet the demands of a new era, it is necessary and urgent to institutionalize a number of outstanding and breakthrough policies to further promote the role of the private sector, strengthen trust, and create a new impetus for economic development, growth, and enhance national competitiveness.

The resolution aims to timely institutionalize the Party’s guidelines and policies to improve the investment and business environment, facilitate private sector access to resources, and encourage private enterprises to participate in important national projects. It also aims to support pioneering enterprises to expand internationally, creating a “driving force, leverage, and support” to unleash the resources and productive capacity of the private sector.

Regarding improvements to the business environment, the draft resolution specifies measures to maximize facilitation for the production and business activities of the people and enterprises. Specifically, the number of inspections for each enterprise, business household, and individual business (if any) should not exceed once a year, unless there are clear signs of violation. The number of checks at enterprises, business households, and individual businesses (if any) should also not exceed once a year, including inter-agency inspections, unless there are clear signs of violation.

The draft resolution also stipulates that in the case of the same content, state management agencies should not inspect and check within the same year, unless there are clear signs of violation by the enterprise. Any acts of abusing inspection and examination to harass and cause difficulties for enterprises, business households, and individual businesses will be strictly handled.

The draft resolution also proposes a shift from managing business conditions through licensing and certification to implementing business condition disclosure and post-inspection.

Additionally, the draft resolution includes specific provisions on supporting enterprises in accessing land and production premises, along with financial and credit support, and public procurement. Accordingly, private sector enterprises, business households, and individual businesses will receive a 2% interest rate subsidy when borrowing capital for green and circular projects. Tax exemptions and reductions are also proposed, such as a two-year exemption and a 50% reduction in the following four years for income tax for innovative start-up enterprises and venture capital fund management companies.

The draft resolution also includes provisions on supporting science and technology, innovation, digital transformation, and human resource training; and on supporting the formation of medium and large enterprises and pioneering enterprises.

The verification report on the draft resolution shows that the Committee for Economic and Financial Affairs agrees with the necessity, political, legal, and practical basis for issuing the resolution through a shortened procedure.

To improve the resolution, the verifying agency proposes that the Government, the Council of Judges of the Court, the Chief Justice of the Supreme People’s Court, and the Prosecutor General of the Supreme People’s Procuracy consider and evaluate the implementation to develop solutions; and soon issue documents detailing and guiding the application of inspection, examination, licensing, and certification for enterprises, business households, and individuals.

Regarding support for access to land and production premises, the verifying agency proposes to perfect this regulation to avoid the “ask-give” mechanism, policy abuse, and causing difficulties for businesses. At the same time, it is recommended to study and specify the form of refund to the investor corresponding to the form of land rent payment…