The Constitution is based on the principles of nationalism, socialism, democracy and secularism and was issued on the fourth day of November, 1972 A.D. Provisions include, among others, the priority of electrification and development in rural areas in order to remove the disparity in the standards of living between the urban and rural areas.

The Decision regulates mechanisms for support and development of wind power projects in Vietnam. Objects expressed by this Decision are organizations participating in power operations in connection with development of wind power projects in Vietnam.

The new Renewable Energy Subsidy Policy 2016 replaces the Renewable Energy Subsidy Policy 2012. The latter successfully developed market for renewable energy technology areas, although significant challenges have prevented adequate mobilization of commercial investment into the (Renewable Energy Technologies) RET sub-sectors. On the contrary, high subsidy rates are believed to attract complementary investments on the basis of mutual benefit. Additional challenges are low utilization rates for the energy produced and delays faced by vendors in being reimbursed for subsidy. The new policy plans to overcome these barriers and to encourage very poor households to use RETs, through a timely revision of the subsidy amount and credit and through the encouragement of the private sector and financial institutions to invest in the sector, while focusing on providing quality service in rural areas. Finally, it focuses on further scaling up of RETs and achieving the objectives of the UN's “Sustainable Development Goals” and “Sustainable Energy for All”.

The Tax Reform of 2011 introduces a Consumption taxation (Taxation on energy) and in particular a Carbon Dioxide Tax of Global Warming Countermeasure. Mention is also made for the introduction of tax credits for low-carbon and energy-saving equipments.

In light of the current economic situation etc., the government will implement the growth-oriented corporate tax reform, etc. from the viewpoint of securing the realization of virtuous economic cycle, and will introduce the reduced tax rate system for consumption tax in line with the consumption tax increase with consideration given to low income earners. At the same time, the government will also address the measures for the declining birthrate and educational reform as well as overcoming Population Decline and Vitalizing Local Economy, while taking tax measures to refurbish international taxation rules into ones suitable for the global business model. Moreover, tax measures to support reconstruction after the Great East Japan Earthquake will also be taken. Specific tax reform measures are shown below.

The government has decided on a tax reduction for promoting investment ,etc. and expansion and improvement for of tax measures for promoting the expansion of income in its “Raising the National and Local Consumption Tax Rates and Associated Responses” (Cabinet decision on October 1, 2013). From the perspective of considering economic situation, the government will take additional tax measures, such as the abolition of the special corporate tax for reconstruction one year ahead of schedule, and tax measures for expanding private investment and consumption, and tax measures for vitalizing local economies, with the aim of ending deflation and revitalization. In order to steadily implement comprehensive tax reform, the government will take necessary measures concerning income tax, corporation tax, automobile taxation, etc. Furthermore, tax measures for supporting reconstruction from the earthquake will be implemented.

With a view to establishing a “positive cycle for creation of growth and wealth,” while taking into account the current economic situation, the FY2013 tax reform proposes tax incentive measures for private investment, the expansion of employment and income, SMEs and agriculture, forestry and fisheries, etc. It will also take necessary measures regarding personal income tax, inheritance and gift taxes, and the acquisition of housing, in order to steadily implement the Comprehensive Reform of Social Security and Tax. In addition, tax measures will be taken to support reconstruction from the Great East Japan Earthquake.

In light of basic perspectives underlying the FY2010 and FY2011 Tax Reforms and the Comprehensive Reform of the Tax System, the government will reform tax system with a central focus on (a) taxation measures towards realizing the New Growth Strategy, (b) efforts towards ensuring equity of taxation and promoting fairness of taxation, (c) local tax reform towards substantiating local taxes and establishing local autonomy, and (d) continuation of considering the measures in the FY2011 tax reform.

With a view to realizing sustainable invigoration of economy and society, while taking into account the current economic and fiscal environment, the FY2008 tax reform will take appropriate measures regarding tax systems for corporation, SMEs, financial and securities transactions, land and housing, etc. From the viewpoint of promoting activities for public interests undertaken by the private sector, it will also take tax measures corresponding to the reform of public interest corporations system and review the tax system for donation. In addition, measures will be taken from the viewpoint of reducing disparities in the fiscal strength among local governments. Concrete measures are summarized below.

With a view to contributing to economic recovery, and while taking into account the current economic and financial environment, the FY 2009 tax reform will take appropriate measures regarding taxation of housing and land, taxation of corporations, taxation of SMEs, inheritance taxation, taxation of financial and securities transactions, international taxation, and motor vehicle taxation.