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.
- EU Places Vietnam on Tax Watchlist – Roadmap Toward Compliance by October 2026
On 17 February 2026, the Council of the European Union added Vietnam to Annex I of the EU list of non-cooperative jurisdictions for tax purposes.
The listing relates to technical compliance issues under the OECD Exchange of Information on Request (EOIR) framework, focusing on transparency and access to information.
The issue does not concern harmful tax regimes or aggressive tax competition, but administrative and information-sharing standards.
The Vietnamese government is expected to implement corrective measures, including stronger beneficial ownership transparency, access to banking and accounting information, and improved EOIR response processes.
Coordination among key authorities such as the Ministry of Finance, General Department of Taxation, and other ministries will be essential.
With swift reforms and cooperation with EU and OECD bodies, removal from Annex I could be achieved in the October 2026 EU review cycle. Learn more here>>>
Sourced by: Dr. Oliver Massmann, Partner & General Director of Duane Morris Vietnam LLC
- Exchange Rate Expected to Remain Under Upward Pressure
In the first session of March, exchange rate pressures quickly resurfaced as USD/VND surged by around 150 points. This was driven by heightened market risk aversion following escalating US–Iran tensions, while the foreign currency balance had already weakened since the end of the previous month.
Looking ahead, upward pressure on the exchange rate is expected to remain dominant for the rest of the month, amid less favorable developments from both external and domestic factors.
Global factors
In the global market, the key driver remains tensions in the Middle East. As noted in our latest update, the current conflict is likely to last longer than the 12-day flare-up in June 2025, although it is not expected to escalate into a full-scale disruption that would significantly block the Strait of Hormuz.
As a result, the USD is likely to remain supported by heightened risk-averse sentiment and concerns that rising oil prices could affect inflation and the Fed’s policy outlook. However, the strength of the greenback may be partly capped by signs of cooling in the US labor market, persistent fiscal concerns, and worries over the Fed’s declining independence.
The DXY index is expected to trade at higher levels than in February, mainly within the 98–100 range.
Domestic factors
Domestically, foreign currency balances are expected to be less favorable than in the previous month, narrowing toward a more balanced position. Although core components such as the trade balance and FDI are likely to improve seasonally, foreign currency demand is also expected to rise due to annual profit repatriation and external debt repayments.
However, we expect upward pressure on the exchange rate to be partly contained, as the VND–USD interest rate differential is likely to remain high, particularly in the early part of the month. In addition, the State Bank of Vietnam (SBV) is expected to maintain a cautious stance to stabilize the exchange rate.
In a scenario where geopolitical tensions escalate further, upward pressure on the exchange rate could intensify.
Sourced by: Dang Quang, Relationship Manager of BIDV Vietnam
- Vietnam Joins the Apostille Convention: Simplifying Cross-Border Paperwork
On 31 December 2025, Vietnam’s Instrument of Accession to the 1961 Hague Apostille Convention abolishing the requirement of legalisation for foreign public documents (the “Apostille Convention”) was deposited with the Ministry of Foreign Affairs of the Kingdom of the Netherlands, as depositary of the Convention, and notified to more than 125 member states.
The Apostille Convention is a multilateral treaty designed to simplify the use of public documents among member states. Instead of undergoing a multi-step consular legalization process, a public document is only required to obtain a single certification (an Apostille certificate) issued by the competent authority of the issuing state for recognition in other member states.
Pursuant to paragraph 3 of Article 12, the Apostille Convention will enter into force for Vietnam and those member states not objecting to its accession as from 11 September 2026. Vietnam has designated the Ministry of Foreign Affairs, including the Consular Department in Hanoi and the Department of Foreign Affairs of Ho Chi Minh City, as the competent authorities to issue Apostille certificates.
On 25 February 2026, Deputy Prime Minister Bui Thanh Son signed Decision No. 330/QD-TTg approving the implementation plan, aiming to complete preparations before 11 September 2026, including communication activities, document verification measures, and online submission of Apostille applications via the National Public Service Portal.
As the accession has only recently been announced, detailed implementation guidance remains forthcoming. We will continue to monitor developments and provide updates on its practical implementation in Vietnam. Learn more here>>>
Sourced by: Michael Wekezer, Country Manager of Rödl Consulting Vietnam
- International Firms Look Beyond Singapore as Operational Leadership Roles Shift to Vietnam, Thailand, Malaysia and Indonesia
International industrial companies continue to expand and decentralize their leadership across Southeast Asia. While Singapore remains the regional HQ hub, companies are increasingly placing operations, supply chain, and commercial leadership in Vietnam, Thailand and Indonesia – markets where production, suppliers, and customers are concentrated. This development is consistent among multinational companies and DACH‑region Mittelstand industrial firms alike.
Southeast Asia’s growing role as an industrial base for international companies is supported by resilient FDI inflows into Vietnam and Indonesia, and strong FDI growth in Thailand and Malaysia (42% and 21% respectively) in 2025. Over the same period, China recorded a 9.5% decline in FDI, highlighting a diversified regional investment landscape.
Across these markets, industrial and manufacturing projects continue to dominate new investment, with each country showing distinct strengths. These dynamics reinforce the need for experienced operational leadership in local markets – particularly in industrial sectors where expansion is most active.
Companies are prioritizing mid‑ to senior‑level leaders in operations, engineering, supply chain, and industrial sales who can bridge global expectations with local execution. Competition for this talent is intensifying, leading to upward pressure on compensation, especially for leaders with cross‑border experience and the ability to scale industrial operations in fast‑growing markets.
Sourced by: Andree Mangels, Southeast Asia Partner at FES Partners
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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.