Regulatory Updates

Vietnam's new Trade Union Law takes effect July 1, 2025, for the first time allowing foreign workers in Vietnam to join trade unions and participate in workplace advocacy. Additionally, the Ministry of Home Affairs (MHA) now handles foreign worker oversight, replacing the Ministry of Labour (MoLISA) as of March 2025. The law also strengthens collective bargaining rights and workplace safety standards for all employees.

In July 2025, Vietnam issued Decree 167/2025/ND-CP (effective August 15, 2025) and Decree 182/2025/ND-CP (effective July 1, 2025) providing comprehensive import duty exemptions for high-tech manufacturing and R&D. Four categories of goods qualify: raw materials and components for certified high-tech enterprises, inputs for digital technology product manufacturing, machinery and equipment for scientific research, and specialized materials for innovation centers. Semiconductor, biotech, and electronics sectors benefit most significantly.

Decree 236/2025/ND-CP, issued August 29, 2025, provides Vietnam's implementation of the OECD Pillar Two Global Minimum Tax (GMT) framework. Effective October 15, 2025, with retroactive application from fiscal year 2024, it requires multinational enterprises with consolidated revenue exceeding EUR 750 million to pay a minimum 15% tax rate in Vietnam. The framework includes both the Income Inclusion Rule (IIR) and Qualified Domestic Minimum Top-Up Tax (QDMTT), both recognized by the OECD as meeting transitional qualified status.

On October 27, 2025, the Ministry of Finance issued Circular 99/2025/TT-BTC replacing Circular 200/2014/TT-BTC, effective January 1, 2026. This is the biggest overhaul of Vietnam's accounting framework in over a decade, shifting from rigid compliance-by-instruction to principle-based IFRS alignment. Key changes include replacing the balance sheet with a 'Statement of Financial Position,' allowing enterprises to customize their chart of accounts, and introducing new accounts for biological assets and Global Minimum Tax expenses.

On June 14, 2025, the National Assembly enacted CIT Law No. 67/2025/QH15, effective October 1, 2025. Decree 320/2025/ND-CP (December 15, 2025) introduces a flat 2% tax on capital transfer proceeds by foreign corporate sellers, replacing the previous 20% rate on gains. The decree also lowers the non-cash payment threshold from VND 20 million to VND 5 million and introduces a 200% R&D expense super-deduction for qualified research expenditures.

Decree 181/2025/ND-CP, issued July 1, 2025, provides detailed guidance for Vietnam's new VAT Law. The standard 10% VAT rate continues to be reduced to 8% through December 31, 2026, supporting economic recovery. Key changes include a stricter non-cash payment threshold of VND 5 million (down from VND 20 million) for input VAT deduction eligibility, expanded VAT exemptions for imported unprocessed goods, and clearer definitions of the 5% reduced rate categories.

On March 20, 2025, the Government issued Decree 70/2025/ND-CP amending Decree 123/2020/ND-CP on electronic invoices, effective June 1, 2025. Key changes include mandatory POS e-invoices for retail and hospitality businesses with revenue over 1 billion VND, new compliance requirements for foreign e-commerce suppliers operating in Vietnam, and tighter invoice issuance timelines for goods exports — now required within one working day of customs clearance. Export processing enterprises engaged in non-export activities must also adopt e-invoices.