Knowledge base

This document is a consolidated version of Decree No. 146/2025/ND-CP (effective July 1, 2025) merged with three later amending decrees: Decree 235/2025/ND-CP (industrial promotion, effective October 15, 2025), Decree 26/2026/ND-CP (chemicals, effective January 17, 2026), and Decree 137/2026/ND-CP (multi-level marketing, effective July 1, 2026). It transfers approval and licensing authority away from the Prime Minister and the Ministry of Industry and Trade (MOIT) down to MOIT itself or to provincial People's Committees, across 25 chapters covering almost every sector MOIT regulates: oil and gas, chemicals, trade promotion, petroleum retail, LPG/LNG/CNG gas trading, tobacco, alcohol, market development, industrial explosives, electrical safety, occupational health and safety, import-export trade, trading activities of foreign-invested enterprises, food safety, product quality, electricity, consumer protection, e-commerce, energy efficiency, minerals, supporting industries, and automobiles. For businesses operating in these conditional business lines, the most important change is which agency now receives and processes applications. Many licenses and certificates that previously required approval from MOIT or the Prime Minister, such as alcohol production and distribution licenses, LPG/LNG/CNG export-import certificates, and tobacco raw-material processing permits, are now handled by provincial People's Committees or the Minister of Industry and Trade. Detailed procedures sit in 16 appendices to the original decree, so businesses should check the appendix matching their industry to identify the correct new authority and avoid filing with the wrong agency. The decree also sets general principles: agencies receiving delegated authority bear full responsibility for exercising it, the state budget funds the resources needed, and procedures involving fees continue to follow existing fee regulations. The entire decentralization framework stays in effect until March 1, 2027, unless extended by a law or National Assembly resolution, or superseded earlier by new legislation in the relevant sector.

The General Department of Customs responded to a company's inquiry about the 2026 VAT rate for imported goods under HS code 8517.62.43 (land mobile information terminal equipment). Under Decree 174/2025/ND-CP dated 23 June 2025, the VAT reduction policy applies from 1 July 2025 through 31 December 2026, but telecommunications sector goods are explicitly excluded from the reduction. The Customs authority did not confirm a specific tax rate in the reply, instead directing the business to review Decree 174/2025/ND-CP and Official Letter 20215/CHQ-NVTHQ dated 20 August 2025 for implementation guidance. For further clarification, the company should contact the customs office where their customs declaration is registered.

Consolidated Document 18/VBHN-BXD, issued by the Ministry of Construction on March 24, 2026, merges Decree 178/2025/ND-CP (effective July 1, 2025) with amending Decree 34/2026/ND-CP (effective January 22, 2026). It details how urban and rural master plans, zoning plans, and detailed plans are prepared, appraised, and approved under the 2024 Law on Urban and Rural Planning. The decree sets time limits for preparing master plans (9 to 15 months depending on the approving authority), zoning plans (up to 9 months), and detailed plans (up to 6 months); qualification and licensing requirements for consulting organizations and individuals involved in planning work; and the procedure for resolving conflicts between plans of the same level. A point of practical relevance for investors is the streamlined «general site layout plan» (quy hoach tong mat bang) mechanism, which lets small land plots (under 2 hectares for apartment projects, under 10 hectares for factories or production facilities, under 5 hectares for other projects) get planning approval within 15 days without a full detailed plan and appraisal process. The decree also amends terminology across several related decrees (real estate business, housing, industrial parks and economic zones, hi-tech zones, and the construction information database system) to standardize the term 'urban and rural planning' in place of the older 'construction planning'. This is primarily an administrative-procedure decree for the construction planning sector and real estate or industrial project execution; it does not address tax, accounting, e-invoicing, labor, or customs matters. Businesses with construction investment projects, especially foreign investors and real estate or industrial developers, may need to reference it when seeking planning approval for their projects.

The Phu Tho Tax Authority provides guidance to a company manufacturing stainless steel boilers and furniture (primary industry code 2511) on the applicable VAT rate under Decree No. 174/2025/ND-CP. Decree No. 174/2025/ND-CP dated 30 June 2025 reduces VAT from 10% to 8% for all goods and services currently subject to the 10% rate, except for categories listed in Appendix I and Appendix II. While "metal products" (san pham kim loai) are generally among the excluded categories, the actual classification depends on the official product industry nomenclature. Referencing Decision No. 43/2018/QD-TTg dated 01 November 2018 (Vietnam Product Industry Classification System), industry code 2511 is classified as "Cau kien kim loai" (metal structural components/fabricated metal products). This specific sub-category is NOT included in Appendix I or Appendix II of Decree No. 174/2025/ND-CP. Therefore, metal structural components (code 2511) are eligible for the reduced 8% VAT rate. The company should verify its actual products and supporting documentation to confirm eligibility for the VAT reduction as stipulated.

The Dong Nai Tax Department advised: a household business that has been applying the flat-rate method (tax rate x revenue) since July 2025, with 2025 revenue above VND 3 billion but estimated 2026 revenue below VND 3 billion, must still apply the income-based PIT method (taxable income = revenue minus expenses) in 2026 - it cannot revert to the flat-rate method. Under Decree 68/2026/ND-CP: household businesses with revenue of VND 500 million or above must use the income-based method. Only if a household business self-determines 2026 revenue below VND 500 million may it use the flat-rate method. If actual 2026 year-end revenue reaches VND 3 billion or above, it must switch to the income-based calculation method.

VAT on air ducts, air duct accessories and fire-resistant air ducts is not a flat figure: goods currently taxed at 10% are reduced to 8% (1 July 2025 - 31 December 2026) under Decree 174/2025/ND-CP, but products classified as "metal products" under Appendix I remain at 10%. The tax authority does not assign a rate; businesses must self-determine by cross-referencing the Vietnam Product Classification System (Decision 43/2018/QD-TTg).

Ho Chi Minh City Tax Authority (Unit 17) responded to PLB Vietnam Co., Ltd. regarding the VAT rate applicable to industrial chains under Decree 174/2025/ND-CP dated 30 June 2025 on VAT reduction pursuant to Resolution 204/2025/QH15 (effective 1 July 2025 to 31 December 2026). The guidance states that where a business sells goods currently subject to 10% VAT that do not appear in Appendix I or Appendix II attached to Decree 174/2025/ND-CP, the reduced VAT rate applies from 01/07/2025 to 31/12/2026. Where goods qualify for the reduction, the business may credit input VAT accordingly. The tax authority requires businesses to cross-reference their product industry codes against the Vietnamese Product Industry Classification System (under Decision 43/2018/ND-TTg) and against Appendix I and II of Decree 174/2025/ND-CP to self-determine the applicable VAT rate for each product in their actual operations. No blanket ruling of 8% or 10% is issued for domestically produced industrial chains.

Tax Sub-department No. 15 of Hanoi provides guidance to Gia Linh Manufacturing and Services Co., Ltd. (TIN 0101873635) on applying the 5% VAT rate to specialized machinery and equipment for livestock (pigs) and poultry (chickens, ducks, poultry egg incubation) farming. Pursuant to Clause 6, Article 19 of Decree No. 181/2025/ND-CP dated 01 July 2025 and Clause 3, Article 9 of VAT Law No. 48/2024/QH15, specialized machinery and equipment for agricultural production (including livestock farming) are subject to 5% VAT, effective 01 July 2025. The confirmed list includes: automatic feed and water dispensers, specialized housing structures, waste treatment equipment, ventilation and cooling systems, egg collection equipment, conveyors, and other specialized machinery. The company is permitted to apply 5% VAT when issuing sales invoices for these items, subject to self-assessment of actual production and business operations against applicable regulations.

The Ministry of Finance provided guidance on PIT and CIT treatment for meal allowances and overtime pay where employees are remunerated under a product-based (lump-sum output) pay scheme. From 01/7/2025, meal allowances that do not exceed the limit prescribed by labor law are not counted as taxable PIT income. Reasonable, documented meal allowance payments are deductible for CIT purposes. For overtime pay, the incremental portion of income paid above the normal working day rate is PIT-exempt. Product-based overtime pay is deductible for CIT if supported by full documentation (labor contracts, task assignment decisions, timesheets, payslips, payment vouchers). This guidance is based on Circular 40/2021/TT-BTC and applicable tax regulations effective from 2025.

The Ministry of Finance provided guidance on VAT treatment of agricultural products dried using machinery. Under Article 5, Clause 1 of VAT Law No. 48/2024/QH15 (as amended by Law No. 149/2025/QH15) and Article 4, Clause 1 of Decree 181/2025/ND-CP, agricultural products that have only undergone normal minimal processing - explicitly including sun-drying and machine-drying - are VAT-exempt when sold by the producer. Machine-drying (solely to reduce moisture, with no additives or flavorings) therefore qualifies as normal minimal processing and is VAT-exempt at the production stage. However, Article 9, Clause 2(d) of the VAT Law imposes a 5% rate on the same category of minimally processed agricultural products when they fall outside the VAT-exempt scope of Article 5, Clause 1 (i.e., sold outside the enterprise/cooperative chain). A 10% rate applies to goods and services not covered by Clauses 1 or 2 of Article 9. Where the degree of processing cannot be determined, the Ministry of Agriculture and Environment is responsible for classification.

The Dong Nai Tax Department responded to two company questions. First, on cash register e-invoices: a business that primarily serves enterprises under contracts and only occasionally has customers who do not want invoices is not required to use cash register-generated e-invoices. Second, on VAT rate for metal door knobs NEWNEO 5881 (HS-equivalent code 259302 - metal locks and hinges): the tax authority directed the company to check the list of goods not eligible for VAT reduction under Decree 174/2025/ND-CP. If the product is not in Annex 1 or Annex 2 of Decree 174/2025/ND-CP, it qualifies for the reduced 8% VAT rate. Businesses must cross-reference their product code against the annexes of Decree 174/2025/ND-CP and Resolution 43/2018/QH14 to determine the correct applicable rate. If product code 259302 is absent from Annexes 1 and 2, the VAT rate is reduced from 10% to 8%.