Stay informed with the latest legal developments impacting the market in Vietnam. This month, we are pleased to share the most relevant updates from our GBA Board Members, Dr. Oliver Massmann, Partner & General Director of Duane Morris Vietnam and Michael Wekezer, Country Manager of Rödl & Partner Vietnam.
►Legal News contributed by Dr. Oliver Massmann, some highlines are as below:
1. MoST announces 21 key strategic technology development plans
- The Ministry of Science and Technology (MoST) announced a list on June 4 of 21 key strategic development plans on sci-tech, innovation, digital transformation to create opportunities for digital technology enterprises to take part in.
- Decision No.1144/QD-BKHCN aims to enhance national competitiveness, boost digital transformation, innovation and develop advanced technologies. It also hopes to create a solid foundation for the country’s sustainable development in the context of international integration.
- This is considered a key step of the ministry in its efforts to realise Resolution 57-NQ/TW of the Politburo on breakthroughs in science, technology, innovation and national digital transformation in the digital age.
- The selected major issues focus on many important areas such as application of AI, Internet of Things (IoT), biotechnology and blockchain. In particular, they also include those on building a national biological data platform integrating AI, developing digital platforms and smart sensors for sustainable aquaculture, and researching and manufacturing advanced 5G equipment and 6G equipment.
- The decision clearly states that agencies and units under the ministry in charge of major issues actively coordinate, support Vietnamese digital technology enterprises to participate in effectively and practically.
2. MoC considers eliminating construction licensing procedures
- This was the statement by Nguyen Danh Huy, Deputy Minister of Construction, at the government’s media briefing on June 4.
- Regarding construction permits, in Official Dispatch No.78/CD-TTg, the prime minister requested the MoC to focus on reducing and simplifying administrative procedures in the construction sector.
- Firstly, for legal documents related to the construction sector and licensing regulations, the MoC will review everything, from the Construction Law to decrees and circulars. Second, the ministry will conduct a final assessment because all licensing procedures for people are decentralised to localities.
- The MoC plans to adjust, amend, and reduce procedures according to the Construction Law, all of which will be completed in 2025. In the immediate future, areas with approved the 1/500 detailed plans can be amended and exempted from licensing immediately. Or areas with urban designs according to the general laws can use that urban design and licensing can be eliminated immediately.
- In order to reform administrative procedures in the construction sector more strongly, substantially, and drastically, to meet the requirements and directions of the Politburo, and the government, the prime minister requested the MoC to cut down on construction permit procedures for construction projects with detailed planning at a scale of 1/500 or developments in areas with approved urban designs; to continue to study and thoroughly decentralise the authority to handle administrative procedures for appraisal, design, construction permit issuance, and inspection of acceptance work in accordance with the organisation of administrative units.
3. Vietnam offers 6.1% interest loans for homebuyers under 35
- Nine commercial banks in Vietnam have committed to offering preferential loans for young people under 35 to purchase social housing, with a fixed interest rate of 6.1% per annum applied through June 30, 2025.
- On May 29, the State Bank of Vietnam (SBV) issued Official Dispatch No. 4290 to nine banks, directing them to implement a special credit program aimed at supporting young homebuyers under 35.
- The participating banks include the Vietnam Bank for Agriculture and Rural Development (Agribank), and joint-stock commercial banks: VietinBank, Vietcombank, BIDV, HDBank, VPBank, Techcombank, TPBank, and MB (Military Bank).
- The SBV emphasized that these commercial banks must continue to promote and expand implementation of the Government’s housing credit program under Resolution 33, which supports social housing, worker housing, and the renovation and reconstruction of old apartment buildings.
- The source of funding for this program comes from banks that have officially registered to participate in the housing credit initiative under Resolution 33.
- The SBV has instructed participating banks to fully implement the program nationwide starting May 31 and to ramp up communication efforts to ensure that eligible borrowers are well-informed and able to register for loans when needed.
►Legal News contributed by Michael Wekezer, some highlines are as below:
1. Resolution 198/2025/QH15 by National Assembly on June 17, 2025, on special mechanisms and policies for the private sector development
- Only one inspection or audit per year, with no overlap. Civil administrative remedies are prioritized, with proactive corrections considered in legal proceedings. No retroactive laws; presumption of innocence is ensured in all proceedings.
- Innovation startups receive a 2-year CIT exemption, then 50% reduction for 4 years; capital contributions are exempt from CIT and PIT. Experts in R&D enjoy PIT exemption for 2 years, then 50% reduction for 4 years. SMEs get a 3-year CIT exemption; large firms may deduct SME training costs. Enterprises may allocate up to 20% of taxable income to an R&D and digital transformation fund.
- High-tech enterprises, SMEs, and innovation startups receive at least 30% land rent reduction for 5 years in industrial zones or incubators. Green, circular economy, and ESG projects are eligible for 2% interest rate support on loans.
- From 2026, household businesses shift to standard tax administration, and the business license fee will be exempted.
- Free reissuance or renewal fees when caused by government restructuring.
2. Draft Decree on Work Permit/ Work Permit Exemption for Foreign Employees in Vietnam
The Draft Decree includes some significant advantages for foreign experts in high-demand sectors, part of a broader push to attract skilled international talent:
- Maximum processing time from 36 days to 10, calculated from the date the application is submitted. The expedited timeline is designed to help Vietnam meet urgent workforce needs in emerging industries such as semiconductors, AI, and digital transformation.
- Foreign experts working in priority fields – such as finance, science, technology, innovation, and national digital transformation, would be able to apply with just a university degree, even without relevant work experience.
Work permits could be granted based on validation from the Ministry of Education and Training or the Ministry of Science and Technology. - In special cases, the Government could issue permits through an exception clause at the Home Affairs Ministry’s recommendation.
3. Law on Digital Technology Industry
On June 14th, the National Assembly passed the Law on Digital Technology Industry at its ongoing 9th sitting held in Hanoi. The Law includes some notable points as follows:
- Small and medium-sized enterprises will receive assistance with infrastructure investment costs, training of high-quality human resources, and will be given priority in bidding for public procurement projects.
- The Government will provide investment capital for special projects and funding for technological innovation.
- Digital technology production projects and supporting enterprises will enjoy tax incentives similar to those in specially disadvantaged areas, while foreign investment will be facilitated to strengthen production capacity.
- High-quality digital technology professionals will be exempted from personal income tax for the first five years of working in Vietnam.
- Foreign experts will be granted five-year visas and exempted from work permit requirements.
- Artificial intelligence (AI) is categorized into high-risk, high-impact, and non-high-risk groups, with high-risk systems subject to strict technical standards and rigorous monitoring.
The law introduces a definition and legal framework for digital assets, which include both tokenized and virtual assets and are classified based on their intended use and technology. - The law is scheduled to take effect on January 1st, 2026.