The resolution, recently adopted by the National Assembly, integrates culture into the overall development framework, linking it with the economy, technology, and market. It also changes the policy approach by not only increasing resources but also reorganizing the operational mechanisms of the cultural sector. The focus has shifted from management to cultural industry development, encouraging deeper participation from the private sector and new investment models.

The resolution mandates that the State ensures an annual cultural expenditure of at least 2% of the total state budget, increasing progressively with development needs. Previously, cultural budget allocations lacked a fixed percentage, depending on balancing capabilities and priorities of each period. This led to unstable investment, dilapidated facilities, and struggling public art units. The absence of a minimum financial commitment also meant the private sector lacked a clear basis for long-term investment.

This new regulation establishes stable resources for culture, allowing programs to be implemented with a long-term vision rather than being fragmented. Citizens will have more opportunities to access public cultural services, artists will have better conditions for creation and performance, and investors will have a clearer foundation to assess risks when participating in projects.

For the first time, the resolution introduces cultural creative clusters, industrial zones, and cultural creative complexes. These models integrate activities from creation and production to distribution and commercialization within a single space. Historically, creative activities were often fragmented and lacked value chain links, increasing costs and limiting scalability. The new policy aims to build a complete ecosystem, connecting research, production, and commerce, integrating high technology and innovative business models, thereby enhancing the efficiency and development potential of cultural products.

The resolution grants enterprise income tax exemption for two years, followed by a 50% reduction for the next four years, along with incentives for personal income and capital transfers within the cultural sector. Specific activities such as film production, distribution, and performing arts will benefit from a 5% value-added tax rate. This policy seeks to improve the investment environment, especially given the cultural industry's high costs and long capital recovery periods, thereby encouraging businesses to engage in fields like cinema, video games, and performing arts.

Circus artists perform on a Ho Chi Minh City stage to celebrate 30/4. *Photo: Thanh Tung*

Innovating funding mechanisms and human resource development

The resolution introduces order-based funding and lump-sum expenditure mechanisms, allowing the state budget to commission cultural works and provide lump-sum payments up to the final product. Previously, funding was primarily based on input costs, coupled with numerous administrative procedures, resulting in a lack of flexibility and suboptimal budget utilization.

The new mechanism shifts the focus to output results, granting organizations and individuals autonomy in using funds, provided they meet product requirements and are subject to evaluation by an independent professional council. This regulation aims to enhance transparency, encourage creativity, and improve the quality of cultural products funded by the state budget.

The resolution also mandates the pilot establishment of a Cultural and Art Fund operating under a public-private partnership model. This fund will accept risks and can invest in creative projects with market potential that do not yet qualify for traditional funding. Consequently, the State will not only provide funding but also share risks with the private sector, fostering a startup ecosystem in the cultural field.

Regarding human resources, the resolution permits public service units to recruit individuals with exceptionally outstanding professional achievements or national/international awards without competitive examination. This provision aims to remove qualification barriers, attracting talent into the public system.

The resolution also stipulates occupational preferential allowances ranging from 40% to 60% of current salary for specialized art forms such as circus, classical, and traditional arts. Additionally, training and performance allowances will be calculated as a percentage of the base salary. This policy aims to improve income and enable artists to commit to their professions.

Furthermore, the State will support retraining costs for public employees in traditional arts, circus, and dance when they reach the end of their professional age. This assistance will help them transition to new job positions and ensure social welfare after their years of dedication.

The resolution on Vietnam's cultural development will take effect from 1/7.

Son Ha