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 New FDI Incentive System After the Global Minimum Tax
Vietnam is reshaping its FDI incentive framework following the implementation of the OECD Global Minimum Tax (Pillar 2), effective from 1 January 2024, which requires multinational groups with global revenues of at least €750 million to maintain a minimum effective tax rate of 15%.
Traditional investment incentives such as corporate income tax holidays, preferential tax rates, and long-term tax reductions are becoming less effective for large multinational investors, as any tax gap below 15% may be collected by the investor’s home jurisdiction.
In response, Vietnam introduced the Investment Support Fund under Decree 182/2024/NĐ-CP, shifting from tax-based incentives toward direct financial support mechanisms including cash grants, R&D support, workforce training, infrastructure assistance, and technology transfer support.
Vietnam’s new investment incentive strategy prioritizes high-quality and innovation-driven sectors, particularly semiconductors, artificial intelligence, digital technologies, advanced manufacturing, renewable energy, biotechnology, and high-tech research and development activities.
For foreign investors, investment discussions are expected to increasingly focus on government support packages, infrastructure commitments, workforce development, and innovation incentives, alongside enhanced compliance obligations relating to Pillar 2 reporting and effective tax rate calculations.
Despite the policy transition, Vietnam continues to position itself as an attractive destination for foreign investment through its strong economic growth, political stability, expanding manufacturing ecosystem, and strategic focus on high-technology and globally integrated industries. For more details, please read the full article here>>>
Sourced by: Dr. Oliver Massmann, Partner & General Director of Duane Morris Vietnam LLC
2. Vietnam’s Law on Construction 2025: Key Developments for Construction and Infrastructure Projects
As Vietnam advances a major infrastructure expansion, with multiple metro line projects across the country, major expressway developments and international airport projects planned over the coming years, the country has revised its construction law framework to better align with international standards and construction practices.
In this context, Vietnam’s new Law on Construction 2025, effective on 1 July 2026, introduces major reforms aimed at improving project implementation efficiency and enhancing legal certainty for complex infrastructure and industrial projects.
The key measures introduced by the new law include:
• Encouraging the use of international construction contracts, such as FIDIC or NEC, providing greater familiarity and certainty for international contractors;
• Formal introduction of Front-End Engineering Design (“FEED”) into feasibility studies, allowing more detailed technical planning and reducing uncertainties in complex infrastructure projects;
• Streamlining of the design approval process by shifting responsibility for later-stage design approvals from state authorities to construction project employers;
• Recognition of liquidated damages as an independent financial remedy for contractual breach, bringing Vietnamese law closer to international construction practices;
• Clearer guidance on force majeure and fundamental changes in circumstances;
• Adoption of a more flexible approach to local contractor capacity requirements, replacing mandatory capacity certificates with a self-assessment and disclosure mechanism for domestic contractors. For more details, please read the full article here>>>
Sourced by: Mr. Christophe Cougnaud, Partner of Forvis Mazars Legal & Ms. Tam Minh Do, Lawyer of Forvis Mazars Legal
3. Key Updates on Vietnam’s New Technology Transfer Regulations
• Clearer recognition of intangible assets as transferable technologies
Reflecting the growing importance of intangible assets, digital solutions, and innovation-driven models in the modern economy, the new technology transfer regulation has expanded the scope of transferable technologies by adding “models” and “algorithms” as recognized subjects of technology transfer. The law also expands recognized transfer methods to cover technology documentation and similar items, for example, quality management processes, standards, and technical specifications, thereby providing a more complete legal basis for technology transactions in practice.
• Update on technologies for which transfer is encouraged
The new technology transfer regulation introduces an updated List of Technologies Encouraged for Transfer. Compared with previous regulations, this list significantly expands incentives to cover emerging and advanced technologies, including digital technologies (such as application of deep learning and Large Language Models), and medical technologies (such as nanotechnology, microwave technology, and freeze-drying technology).
In addition to promoting the transfer of new and advanced technologies, the new technology transfer regulation also places emphasis on “green technologies,” which includes technologies designed to implement efficient use of resources, energy savings, emissions reduction, and environmental friendliness, thereby contributing to sustainable development, notably, this includes clean energy technologies (such as nanotechnology in energy applications, smart grid security, and electric vehicle charging infrastructure).
• Update on technologies for which transfer is restricted
To enhance the efficiency of environmental protection, the new technology transfer regulation introduces additional restrictions on certain technologies, the application or production of which may be harmful to the environment or demonstrate low environmental efficiency. These include, for example, solar panel manufacturing technologies with efficiency from 15% to below 20%, technologies that generate persistent organic pollutants (POPs), lead-acid battery production, and the use of radioactive substances in healthcare.
Sourced by: Ms. Phan Thien Huong, Partner of Nishimura & Asahi (Vietnam) & Ms. Nguyen Van Trang – Counsel of Nishimura & Asahi (Vietnam)
4. Vietnam FX & Rates Outlook – May 2026
Vietnam’s macro picture for the rest of 2026 holds steady against an unsettled global backdrop. UOB Group Research expects GDP growth of around 7% this year, with the State Bank of Vietnam keeping its policy rate at 4.5% through year-end. Potential reclassification to Emerging Market status in September 2026 remains a structural tailwind for portfolio inflows.
On the currency, the VND has traded near the weaker end of the SBV’s band through April at around 26,400/USD, pressured by sustained USD safe-haven demand and a year-to-date trade deficit of USD 3.28 billion. The SBV has intervened via 180-day cancellable USD forward contracts to commercial banks at 26,850/USD. UOB Group Research forecasts USD/VND at 26,600 in 2Q26, easing to 26,300 by 1Q27 as geopolitical risks recede.
The broader picture: with the Strait of Hormuz remaining closed in the third month of the US-Iran conflict, supply disruption has spread from crude oil into industrial metals, chemicals and agriculture. Brent crude is expected to range around USD 100/bbl, with headline inflation pressures keeping the Federal Reserve on an extended pause before a single rate cut in 4Q26.
For Vietnam’s importers and FDI-linked businesses, near-term USD strength through 2Q26 followed by gradual easing into 2027 remains the baseline. For more details, please read the full article here>>>
Sourced by: UOB Group Research’s Monthly FX & Rates Strategy, May 2026