The Government of Vietnam has recently issued the Decree 69/2008/NĐ-CP on policy of socialization of the activities in education and training, vocational training, health care, culture, sports and environment.

Accordingly, the beneficiaries of socialization policy including: The non - public establishments ensuring full conditions of operation as stipulated by the Government agencies and competence in the fields of socialization; The organizations, individuals operating under the Enterprise Law, possessing invesment projects, joint - venture projects or projects associated with the other organizations operating in the fields of socialization; The public non- productive establishments implementing the mobilization of capital resources within the people and organizations of all economic sectors (joint - ventures or associations); As for the foreign invested projects in the fields of socialization, the Prime Minister will make the decision of the implementation of preferential policies based on the proposal of the Ministry of Planning and investment and relevant Ministries.

The investors will enjoy encouraging policies and preferences as follow:

- On material basis: the People’s Committees of the provinces use the existing housing fund, infrastructures or build infrastructures to allocate or lease them to the establishments implementing socialization of these activities under long-term period, with the preferential price. The maximum price don’t include land tax, compensation charge for ground clearance and interest of infrastructure trading firms.

- On land: the establishments implementing socialization of these activities completed the ground clearance of the land allocated or leased by the State for the construction of socialized projects according to different forms: investors shall be allocated land, exempt from land use charge; investors shall be leased land and exempt from land rent; investors shall be allocated land with payment for land use and exempt from land use charge

- On fee, charge and tax: the establishments implementing socialization of these activities are exempt from registration fee when registering the land use right, the ownership right of assets attached to the land; exempt from the other fees, charges involving to the land use right, the ownership right of assets attached to the land; exempt from value added tax, export tax, import tax and etc according to current regulations. The People’s Committees of the provinces consider to make the decision of reduction or exemption of infrastructure use charge according to prescriptions of law. 

- On enterprise income tax: 10% tax rate during operation for the establishments implementing socialization of these activities. Exemption for the first four years and reduction by 50% of the tax payable in the five following years for newly founded establishments from the effective date of the Decree. 

- On credit: the establishments implementing socialization of these activities are eligible for preferential credit policies or post-investment assistance of the State.

In addition, the Decree also stipulates conditions of the establishments operating in the socialized fields to get the encouraging policies and preferences and the respondsibility of the State management agencies in implementing the encouraging policy of socialization.

The promulgation of the Decree is greatly practical. It is the legal basis for widely developing the activities in education and training, vocational training, health care, culture, sports and environment, promoting the broad participation of the people and the entire society into the development of these activities as well.