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 highlights are as follows:
1. Incentives, support policies for allied industries’ development
- According to Decree 205/2025/ND-CP dated July 14, 2025, amending and supplementing a number of articles of Decree 111 of 2015, on development of supporting industries, above organizations and individuals will also receive incentives and support from the National Technology Innovation Foundation, the National Foundation for Science and Technology Development and the National Program on High Technology Development.
- The new decree sets the maximum support level for cooperative projects on technology research, application, and transfer between businesses and science and technology organizations at 50 percent of their total investment in machinery and equipment, sample products, engineering, software, training, hiring of expert consultants, inventions, and transfer of intellectual property and industrial property rights. It also specifies that the maximum support level will be 70 percent of expenses for activities to improve the quality of consultancy experts and units in the field of technology application and transfer.
- Manufacturers supporting industry products on the list of products of supporting industries prioritized for investment provided in Appendix I to this Decree will be entitled to legal support provided in the Law on Support for Small and Medium-sized Enterprises.
- In addition, they will receive support provided under the supporting industry development program of up to 50 percent of expenses for product quality testing, inspection and certification consultancy, establishment and announcement of corporate standards, and quality management system certification; product quality testing, inspection, and certification provided by product quality testing, inspection and certification systems of state management agencies; renting testing, inspection and certification laboratories; brand identification, copyright and industrial property registration, and barcode application; and testing and inspection of new and innovative goods and products.
2. Vietnam grants 45-day visa waivers to citizens from 12 countries
- Citizens from 12 countries will be granted visa-free entry for stays of up to 45 days in Vietnam for tourism purposes, regardless of their passport types.
- According to the Government’s Resolution 229/NQ-CP dated August 8, visa exemptions will be granted to citizens of Belgium, Bulgaria, Croatia, the Czech Republic, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia, Slovenia, and Switzerland. The policy will take effect from August 15, 2025, to August 14, 2028, under the tourism promotion and development program.
- As of 15 August 2025, the Government’s Resolution 11/NQ-CP dated January 15, 2025, on visa exemptions for citizens of Poland, the Czech Republic, and Switzerland under the 2025 tourism promotion and development program will be invalid on August 15, 2025.
- Also on August 8, the Government issued Decree 221/2025/ND-CP on a limited-term visa waiver scheme for foreign nationals in specially designated categories whose presence is deemed beneficial to the country’s socio-economic development.
- Under the decree, eligible individuals include guests invited by top national leaders such as the General Secretary of the Communist Party of Vietnam, the State President, the Chair of the National Assembly, the Prime Minister, the Standing Member of the Party Secretariat, vice heads of the State, Parliament and Government, heads of mass organizations, the Chief Justice of the Supreme People’s Court, the Prosecutor General of the Supreme People’s Procuracy, the State Auditor General, ministers and equivalent officials, as well as provincial and municipal leaders.
3. Criteria for green investment projects introduced
- According to Decision 21/2025/QD-TTg dated July 4, which provides environmental criteria and certification of investment projects under the green taxonomy, an investment project must meet two criteria to be certified as “green”.
- First, the project must obtain a decision on approval of the results of the appraisal of the environmental impact assessment report, an environmental license, or an environmental registration certificate as prescribed in the law on environmental protection, except for investment projects that are exempt from environmental procedures in accordance with the law.
- Second, the project must be in the field of environmental protection or bring about environmental benefits and meet the requirements specified in Appendix I to Decision 21.
- It goes on to say that an independent certification body must have the legal person status as prescribed by law, and make business registration in Vietnam or be established under a competent state agency’s decision.
- In addition, such a certification body must be engaged in commercially providing conformity assessment services or have the conformity assessment function, or commercially provide auditing services.
- It must also have a management system and operational capacity that aligns with relevant national or international standards on conformity assessment and assurance engagements, or revised or replaced standards issued by Vietnamese authorities in accordance with law.
Legal News contributed by Michael Wekezer, some highlights are as follows:
1. Procedures, forms, and dossier to obtain Work Permits and Work Permit Exemptions of foreign employees working in Vietnam
- Decree No. 219/2025/ND-CP on foreign employees working in Vietnam dated 07 August 2025 (effective from 07 August 2025).
- Simplified and reduced processing time to apply for a Work Permit and Work Permit Exemption.
- Foreigners who are married to Vietnamese and residing in Vietnam are not required to obtain Work Permits/Work Permit Exemptions.
- Foreigners confirmed by certain Vietnamese authorities to enter Vietnam to work in the fields of finance, science, technology, innovation, national digital transformation, and priority fields for socio-economic development are not required to obtain a Work Permit.
2. Draft Decree on Work Permit/ Work Permit Exemption for Foreign Employees in Vietnam
- Decree No. 221/2025/ND-CP on visa exemption for foreigners in special preferential treatment to serve socio-economic development dated 08 August 2025 (effective from 15 August 2025).
- Foreigners in the following eligible groups are subject to special 5-year visa exemption scheme to support socio-economic development:
- Top-tier investors & executives;
- STEM & health experts;
- Cultural & sports figures;
- Tourism ambassadors & content creators;
- Honorary Consuls of Vietnam abroad.
- Guests invited by Government-approved research institutes, universities, and large enterprises.
3. The monthly trade union fee officially decrease to 0.5% of salary, instead of the 1% payment rate as previously
Several notable key points below:
- Standard Rate: 0.5% of salary used for social insurance, capped at 10% of the reference level.
- Calculation Methods: the grassroots trade union can use take-home pay or a higher rate if approved by the Executive Committee and stated in internal rules.
- Extra Contributions: Any additional amount collected above the standard rate will be retained by the grassroots union and must be reported separately.
| Dr. Oliver Massmann
Partner & General Director Email: omassmann@duanemorris.com |
Michael Wekezer
Country Manager Email: michael.wekezer@roedl.com |