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. New corporate income tax rates are regulated
- The rates will range between 15% and 50% under the latest corporate income tax law approved by the National Assembly.
- Standard corporate income tax (CIT) in Vietnam shall be 20 per cent for resident and non-resident businesses, the Government News on July 14 quoted the latest CIT Law approved by the National Assembly as reporting.
- A preferential CIT rate of 15 per cent shall be applicable for a business with total annual revenue of up to VND3 billion ($118,830). Meanwhile, a preferential CIT rate of 17 per cent shall be applicable for a business with total annual revenue between VND3 billion and VND50 billion (more than $1.918 billion).
- For oil and gas exploration and exploitation, the CIT rate shall range between 25 per cent and 50 per cent. The Prime Minister shall decide the specific tax rate for each oil and gas contract.
- For exploration and exploitation of precious and rare natural resources, including platinum, gold, silver, tin, gemstones, rare earths, and others as prescribed by law, the tax rate shall be 50 per cent.
2. PM directs to enhance efficiency of monetary, fiscal policies
- Prime Minister Pham Minh Chinh asks credit institutions to continue cutting costs, streamlining administrative procedures, and accelerating digital transformation to lower lending interest rates and support production and business activities of enterprises and individuals.
- Credit should be channeled into priority sectors, traditional growth drivers such as investment, exports, and consumption, as well as emerging growth motivations like science and technology, innovation, digital economy, green economy, and circular economy.
- The PM requested accelerating credit programs for people under 35 to buy, rent, or lease-purchase social houses; the VND500-trillion credit package for businesses investing in infrastructure, science and technology, innovation, and digital transformation; and a credit program to support the production, processing, and consumption value chain of high-quality, low-emission rice in the Mekong Delta.
- The PM assigned the Ministry of Finance to strengthen state budget revenue management; modernize tax administration; strive to increase state budget revenue in 2025 by at least 20% compared to the projected estimate; and save an additional 10% in regular spending for the remaining months of 2025.
- The PM urged ministries, agencies, and localities to accelerate public investment disbursement, aiming to fully disburse the 2025 public investment budget; increase total social investment capital by 11–12% compared to 2024; and urgently resolve long-standing and stalled projects to free up resources and prevent wastefulness.
3. NA issues resolution on international financial center in Vietnam
- The resolution clearly stipulates the establishment, operation, management, supervision, and specific mechanisms and policies applicable to the center.
- Vietnam will have special and superior mechanisms and policies to encourage the attraction of capital, technologies, modern management methods, high-quality human resources, and infrastructure development to the center.
- The resolution also aims to create an attractive environment for investment in the financial service sector to promote investment attraction and the free movement of international capital between the International Financial Centre and the world; develop the stock and insurance markets, banking activities, fintech, digital assets, commodities, and e-commerce in Vietnam and integrate with international markets.
- It targets attracting and developing innovation and financial services supporting green and sustainable projects in Vietnam; improving financial services and support services in accordance with international practices; and attracting and developing high-quality human resources capable of providing financial services and related professional services which meet international standards.
- When at least one party involved is a foreign individual or organization, the parties may agree to apply foreign laws to their transactions. However, foreign laws shall not be applied if its application results in consequences that violate the fundamental principles of Vietnamese laws.
Legal News contributed by Michael Wekezer, some highlights are as follows:
1. Implementation for registration of Level-2 eID Accounts for foreigners in Vietnam
- Decree No. 69/2024/ND-CP on electronic identification and authentication dated 25 June 2024 (effective from 01 July 2024)
- Decision No. 5349/QD-BCA-C06 dated 19 July 2024 (effective from 19 July 2024)
- From 01 July 2025, Provincial Immigration Departments will register Level-2 eID Accounts for foreigners. Required documents: valid passport, Residence Card, Form TK01, a registered Vietnamese mobile number, and an email address.
- Processing time: 3 working days if biometric data is in the database, or 7 working days if not.
2. Regulations regarding Ultimate beneficial owner(s) (“UBO”)
- Law No. 76/2025/QH15 on amendments to Law on enterprises (effective from 01 July 2025)
- Decree 168/2025/ND-CP on Business Registration (effective from 01 July 2025)
- When establishing an enterprise, it is mandatory to declare the UBO. For enterprises established before 01 July 2025, this information must be included in the next change notification unless submitted earlier upon request.
- A UBO of an enterprise is an individual who either: (a) directly or indirectly holds at least 25% of the enterprise’s charter capital or voting shares, or (b) has control over key company decisions.
3. Regulation on personal data processing and compliance
Law No. 91/2025/QH15 by the National Assembly on Personal Data Protection (PDPL)
(effective from 01 January 2026):
- After a long period of applying Decree 13/2023/ND-CP, the country’s first comprehensive personal data protection regulations (PDPD), PDPL has been officially issued and will soon take effect.
- PDPL applies to both domestic and foreign entities. The law introduces new Non-Consent-Based forms of personal data processing and covers cross-border transfer of any personal data that originates in Vietnam which is broader than the PDPD; and also the specific data protection requirements applicable to new areas and services.
- PDPL violations can result in fines up to VND 3 billion, 10 times unlawful revenue for data trading, or 5% of annual revenue for cross-border breaches.
| Dr. Oliver Massmann
Partner & General Director Email: omassmann@duanemorris.com |
Michael Wekezer
Country Manager Email: michael.wekezer@roedl.com |