As part of our ongoing effort to keep members informed, we are pleased to share the most relevant updates in Vietnam across Legal, Tax, Accounting, Banking, and HR. These insights are contributed by our GBA members, bringing practical expertise and market perspectives to support the business community in navigating regulatory developments and economic trends.
1. Vietnam’s Medium-Term Structural Outlook Remains Constructive, Despite a More Challenging Global Backdrop
FTSE Russell has formally confirmed Vietnam’s reclassification to Secondary Emerging Market status, effective September 2026, with phased implementation through 2027. This represents a meaningful milestone for Vietnam’s capital markets, carrying the potential to broaden the investor base, improve market liquidity, and enhance Vietnam’s visibility within global investment portfolios over time.
In the near term, however, markets are being dominated by a single, fast-moving global risk: a potential energy supply disruption linked to the Iran conflict and developments around the Strait of Hormuz. Oil prices jumped on the news that the US plans a blockade on Iran-linked vessels transiting Hormuz, underscoring how quickly geopolitical developments can feed through to inflation expectations, interest rates, and FX markets.
The transmission of oil price and supply shocks is both macro-financial and trade-related. Higher oil prices raise imported inflation and the import bill, while risk-off conditions can add to FX volatility. DB Research, in its latest analysis, flags that, while its baseline forecast has the State Bank of Vietnam keeping its policy rate stable, an adverse scenario of prolonged Middle East tensions could potentially force central banks’ hands, including the SBV, into rate hikes.
Sourced by: Mr. Quang Huynh, Chief Country Officer of Deutsche Bank
2. ESG Handbook: A True Sustainability Ecosystem with Global Endorsement, Genuine Green Financing, and Technology Solutions to Lower the Cost of Implementation for Businesses
30 leading experts in sustainability across Vietnam, including ACCA Judging Panel of Sustainability Reporting Award for listed companies, Member of National Council for Sustainable Development, ACCA, KPMG, Unilever, Tony Blair Institute, OCB, ACB, HDB and Agribank… to find the way to develop an ESG Handbook to support SMEs in Vietnam.
Dr. To Hoai Nam, standing vice president and general secretary of the VINASME cum Member of National Council for Sustainable Development, noted that the handbook is expected to serve as a key tool to help businesses accelerate their transition. He committed that the VINASME, with its network of 34 provincial associations and 39 affiliated units, is ready to work alongside the ACCA and KPMG to disseminate the handbook across the SME community.
(As this is a detailed article, which may express specifically more than 150 words, please help to input this link to further information: Small business ESG strategies unlocked)
Sourced by: Mr. To Quoc Hung, Country Manager of ACCA Vietnam
3. Vietnam’s New Salary and Personal Income Tax Regulations Amended VAT Law (No. 149/2025/QH15)
Restructured PIT Brackets: From July 1, 2026, tax brackets consolidate from seven to five. The 10% rate now applies to income up to VND 30 million, significantly lowering the tax burden for the middle class.
New Deduction Incentives: Taxpayers can now potentially deduct healthcare and education expenses. Specialized PIT incentives also target R&D and high-tech personnel to boost the digital economy.
Strategic Compliance Requirements: Businesses must immediately update payroll systems and labor cost projections. Highlighting increased net take-home pay serves as a vital tool for employee retention during this transition.
Expanded lower tax bands may reduce PIT liabilities for middle-income earners, requiring payroll recalculations and updates to withholding systems.
Increased Relief Deductions: Personal deductions climb to VND 15.5 million and dependent deductions to VND 6.2 million per month, reflecting a ~40% adjustment for rising living costs.
Strategic Cash Flow Relief: B2B transactions for unprocessed agricultural and fishery products are now classified as ‘’not required to declare and pay’’. This removes the 5% VAT cash outflow for buyers while allowing them to retain full input tax credits.
Modernized Threshold: The annual revenue threshold for VAT exemption for household businesses has been quintupled to VND 500 million. That reduces the compliance burden for small-scale suppliers and service providers.
Sourced by: Mr. Alexandre Ho Thanh, Head of Legal & Advisory and Ms. Nguyen Chau Thuy, Head of Accounting Services of RBA WTS Vietnam
4. Vietnam’s Property Market: A Shift in Capital Inflow from Exploration to Execution
As of the end of Q1/2026, total disbursed FDI in Vietnam’s real estate sector reached USD 389.5 million, accounting for 7.2% of total investment. Housing supply showed signs of recovery, though transaction volumes remained modest due to macroeconomic uncertainty and sharply rising lending rates.
Looking ahead, the market is expected to move into a phase of consolidation and restructuring, guided by three key drivers: real demand, legal transparency, and long-term investment efficiency. Foreign investors now adopt a more disciplined and strategic approach, deploying capital with clearer intent, targeting scale, quality, and long-term positioning.
Key highlights by segment in Q1:
- Condominium prices reached new highs, while liquidity slowed
- Landed property supply remained ample in HCMC; national prices continued to rise
- Industrial real estate in HCMC attracted high-tech investors, supported by infrastructure expansion
- Office market in HCMC prioritized occupancy; Hanoi saw new supply and clearer supply–demand adjustments
- New hotel supply emerged in HCMC and Hanoi; hospitality benefited from peak travel demand
- Retail real estate remained resilient, driven by strong domestic consumption. Read more here: News Release
Sourced by: Mr. David Jackson, Principal and CEO of Avison Young Vietnam
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The views expressed in each section reflect the professional assessment of the respective contributors and are shared for general informational purposes. Members are encouraged to consult directly with the contributing firms for tailored advice and further clarification where needed.