Stay up to date with the latest legal developments impacting businesses 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, shares key legal updates affecting trade, trade, taxation, economic reforms, and the banking sector:
- Government proposes 2% VAT reduction on select goods and services until 2026
- Ministry ensures smooth transition in Certificates of Origin procedures
- New economic policies take effect from May, 2025
- New regulations on regulatory sandbox mechanism in banking sector
Michael Wekezer, Country Manager of Rödl & Partner Vietnam, highlights the latest requirements for eID registration relevant to entities operating in Vietnam.
1. Government proposes 2% VAT reduction on select goods and services until 2026
Some highlines are as below:
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The Government has proposed a 2 per cent reduction in the value-added tax (VAT) for goods and services currently taxed at 10 per cent, lowering the rate to 8 per cent.
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The VAT reduction will not apply to sectors including telecommunications, financial services, banking, insurance, securities, real estate, metal products, mining (excluding coal) and items subject to special consumption tax (except for gasoline), according to the proposal.
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Additionally, the State has proposed adding gasoline, washing machines, and microwave ovens to the list of goods eligible for the 2 per cent VAT reduction.
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The policy is expected to lower the price of goods and services, thereby supporting consumer spending, stimulating consumption, and promoting business and production activities. This, in turn, is anticipated to create jobs, stabilise the macro economy, and drive economic growth.
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Some deputies also suggested reviewing the list of goods excluded from the VAT reduction, particularly those affected by international trade conflicts and reciprocal tax measures from countries like the US. They said extending support to such sectors could help shield domestic businesses from external economic pressures.
2. Ministry ensures smooth transition in Certificates of Origin procedures
Some highlines are as below:
- The Ministry of Industry and Trade (MoIT) has assigned 18 regional Export-Import Management Offices to handle the issuance of non-preferential Certificates of Origin (C/O), non-manipulation certificates (CNM), and REX code registration under the Generalised System of Preferences (GSP) of Norway and Switzerland.
- This change is part of a ministry’s broader effort to improve state management of origin certification and align with the newly issued Laws on Government Organisation and Local Government Organisation in 2025.
- From 5 May 2025, MoIT-authorised offices will begin issuing 10 types of non-preferential C/Os, including Form B and CNM, and registering REX codes. These will be managed alongside the 18 types of preferential C/Os already in place.
- The Department of Foreign Trade continues to coordinate with related units to implement these policies, focusing on both preventing origin fraud and making things easier for businesses.
- To support exporters during the transition, the MoIT will provide detailed instructions and hands-on assistance through its regional offices. The goal is to ensure the process is consistent, transparent, and convenient for all businesses.
3.New economic policies take effect from May, 2025
Some highlines are as below:
- Circular 07/2025/TT-BKHDT (Circular 07), issued by the Ministry of Planning and Investment (now the Ministry of Finance) on February 13, 2025, providing regulations on statistical classification according to economic types, will takes effect from May 1, 2025.
- The Circular aims to establish a unified statistical classification system for economic units, serving state statistical activities. This classification helps identify and categorize economic units with similar characteristics into corresponding economic types, providing a basis for accurate and efficient collection, analysis, and reporting of economic data.
- Circular 18/2025/TT-BCT issued by the Ministry of Industry and Trade on March 13, 2025, which supplements regulations on the mechanism for managing gasoline prices, will take effect from May 2, 2025.
- Based on data on factors that make up gasoline prices in line with regulations and opinions participating in managing gasoline prices of the Ministry of Finance in writing, the Ministry of Industry and Trade announces the basic price and the selling price of gasoline.
- Under Decree No. 69/2025/ND-CP, amending several provisions of Decree No. 01/2014/ND-CP regarding foreign investment in Vietnamese financial institutions, foreign investors could only buy treasury stocks which were purchased by credit institutions before January 1, 2021.
- In special cases involving weak or troubled financial institutions, the Prime Minister is in charge of deciding on ownership percentage of a foreign organization or a strategic foreign investor. The decree will come into effect on May 19.
4. New regulations on regulatory sandbox mechanism in banking sector
Some highlines are as below:
- The new regulations outlined in Government Decree No. 94/2025/ND-CP, dated April 29, 2025, which will take effect from July 1.
- The Decree, which was dated April 29, 2025, and will take effect on July 1, 2025, covers regulations on the regulatory sandbox mechanism in the banking sector for the deployment .of new products, services, and business models via the application of financial technology or fintech, according to the Government News.
- The Decree shall be applicable for the following entities: Credit institutions and foreign bank branches as defined under the Law on Credit Institutions (excluding those involved in P2P lending); Fintech companies; Competent state authorities; Customers and other organizations and individuals related to the sandbox mechanism.
- The mechanism aims to promote innovation and modernization in the banking sector, thereby helping to achieve the goal of financial inclusion for individuals and businesses towards a transparent, convenient, safe, efficient, and low-cost manner.
5. The recent requirements for Registration of eID for Entities in Vietnam
Some highlines are as below:
Under Decree No. 69/2024/ND-CP on electronic identification and authentication issued on 25 June 2024 (“Decree 69”), all entities operating in Vietnam must register a company eID account on the VNeID platform to access and connect with administrative information systems (“eID Company Account”). Entities are required to complete the registration before 1 July 2025.
- Registration of eID Company Account
There are two ways of registration:
▹Online submission: The legal representative (or a person authorized by them) must use their personal Level-2 eID Account to log in to VNeID app and request the issuance of a Company Account.
▹Direct registration at the Ward-level police: Ward-level police will also require submission of the legal representative’s eID number via Form TK02, as mandated by Decree 69. - Procedure
Prior to registration of eID Company Account, the legal representative must possess Level-2 eID Account so that he/she can log into VNeID app and request for registration of eID Company Account. Procedures as follows:
- Practice
Despite having regulations in place, as lack of official guidance for authorities on Level-2 eID Account registration for foreign individuals, they may therefore decline to process such requests at this time. Consequently, although it may be possible to assign a Vietnamese individual to register the Company Account under an authorization from a foreign legal representative, the legal representative must have a Level-2 eID Account. Therefore, the use of a POA is not currently possible until further guidance given from the authorities.