Guidance on monthly invoice issuance

On October 10, 2025, the Da Nang City Tax Department issued Official Letter No. 1820/DAN-QLDN2 (“Official Letter”) to address enterprises’ inquiries regarding the timing of invoice issuance and the delivery of goods and services at the end of the month in accordance with regulations on invoices and supporting documents.

The Official Letter reaffirms the general principle that the time of invoice issuance is the time when ownership or the right to use goods is transferred to the buyer, or when the provision of services is completed.

Only in cases involving the sale of goods or the provision of services in large quantities and on a frequent basis—such as electricity, water supply, television, telecommunications, securities, computerized lottery, and transportation support services for railway, road, and aviation—may the seller issue monthly invoices based on an agreed-upon billing cycle between the parties.

Accordingly, the Official Letter emphasizes that for transactions not falling under the aforementioned categories, enterprises are not permitted to issue invoices on a monthly basis, even if the parties have a written agreement stipulating the issuance of monthly invoices.

Draft Law on Investment: Breakthrough to promote private investment and enhance national competitiveness

After more than 05 years of implementation, alongside its positive outcomes, the Law on Investment 2020 has revealed several limitations concerning the provisions on investors’ freedom of business, investment incentive and support policies, as well as procedures for carrying out investment and business activities in Vietnam.

With a view to addressing these shortcomings, the Ministry of Planning and Investment has completed the first draft of the Law on Business Investment (“Draft”). The Draft introduces major reform proposals, succeeding and replacing the Law on Investment 2020, with the objective of removing barriers to investment activities, promoting private sector investment, and enhancing national competitiveness. The key highlights of the Draft are as follows:

A significant proposed change under the Draft is the addition of cases exempted from investment policy approval. Specifically, the Draft provides that the following projects shall not be subject to investment policy approval procedures: projects already specified in sectoral or provincial master plans with defined names, scales, objectives, locations, and timelines; projects awarded through land use right auctions or bidding for land-use projects; and mineral exploitation or industrial cluster infrastructure development projects. This change aims to simplify procedures and resolve existing bottlenecks in the current implementation process.

Regarding foreign investment activities, under the current Law on Investment 2020, a foreign investor must have an approved investment project before establishing an economic organization in Vietnam. However, the Draft proposes to abolish this principle, allowing foreign investors to apply for an Enterprise Registration Certificate (ERC) before applying for an Investment Registration Certificate (IRC). This approach increases flexibility for investors but also necessitates stronger control over market access conditions at the enterprise establishment stage, as well as clear guidance on the timeline that the investor must obtain IRC after the issuance of ERC.

Another groundbreaking reform proposed in the Draft is the removal of 17 conditional business lines, including accounting services, rice export, labor subleasing, funeral services, overseas study consultancy, and performing arts, repairing, maintaining of cars, among others.

The Draft also proposes to abolish the list of conditional outward investment sectors and clarify the authority for issuing outward investment registration certificates. Specifically, outward investment projects with capital of VND 20 billion or more shall fall under the licensing authority of the Ministry of Planning and Investment. Projects with capital below VND 20 billion shall not be subject to the outward investment registration certificate requirement; instead, investors will only need to register foreign exchange transactions in accordance with the laws on foreign exchange management.

In addition, a notable revision concerns the adjustment of the scope and criteria for determining investment incentive locations. The Draft categorizes incentive areas into two groups: areas with difficult or particularly difficult socio-economic conditions; and  industrial zones, export processing zones, high-tech zones, concentrated digital technology zones, and economic zones. Accordingly, industrial zones, export processing zones, high-tech zones, concentrated digital technology zones, and economic zones are now established as an independent group of incentive areas, rather than being classified within areas of difficult or particularly difficult socio-economic conditions as before. This approach enables a more tailored design of incentive policies aligned with the characteristics of each type of investment area.

Overall, the Draft represents an important institutional breakthrough, aiming to establish a more open, transparent, and competitive investment environment for both domestic and foreign investors. The proposed reforms — including the abolition and simplification of investment policy approval procedures, enhanced autonomy for foreign investors in enterprise establishment, and the substantial reduction of conditional business sectors — reaffirm the Government’s commitment to fostering private investment and improving Vietnam’s overall investment climate.

Breakthrough proposal in eliminating notarization and marital status certification in land and vehicle transactions

On October 9, 2025, the Ministry of Public Security has published the draft Resolution of the Government regarding the removal of notarization and marital status certification procedures (“Draft”). Aiming to meet the objectives of administrative procedure reform and national digital transformation, the Draft Resolution proposes to abolish the requirements for notarization and marital status certification in land and vehicle transactions for cases where data has already been digitized and verified.

The Draft seeks to simplify administrative procedures by completely eliminating paper-based documents for two types of transactions: transactions involving the sale, transfer, donation, mortgage, or inheritance of land use rights and assets attached to land; and) transactions involving the sale, transfer, donation, or registration of ownership of vehicles.

Accordingly, instead of requiring notarization and paper-based certification, these procedures would be integrated and automated based on existing data available in the national databases on population, civil status, land, and vehicles.

The Draft also emphasizes and affirms the legal validity of digitized and electronically authenticated data. Data collected and verified from these national databases will have the same legal effect as paper documents, and citizens will not be required to resubmit documents that already exist in the national data systems. Officials and civil servants will be responsible for retrieving and verifying information directly from the electronic system, rather than requesting paper copies from citizens.

With respect to implementation procedures, the Draft Resolution proposes to abolish the requirement for notarization and marital status certification in relevant administrative processes to eliminate unnecessary formalities, thereby reducing costs, shortening processing time, and minimizing overlapping documentation.

For cases where data has been digitized and authenticated, citizens will only need to log into the National Public Service Portal or the VNeID application to declare transaction information. The electronic data system will automatically verify personal information, marital status, land use rights, and vehicle ownership. Contracts will be created, signed, and stored on the electronic platform, with transaction results returned either online or in person, depending on the citizen’s choice.

In cases where such data has not yet been digitized within the national databases, the competent authority may request paper documents once only, while also guiding citizens on updating their information to enable simplified procedures for future transactions.

Overall, the Draft Resolution is considered a breakthrough in institutional reform, establishing a legal framework for the use of electronic data in civil transactions. It is expected to significantly reduce administrative procedures, costs, and processing time for both citizens and businesses, while enhancing public satisfaction and trust in the Government amid the ongoing process of digital transformation and international integration.

Investment Reform and Digital Transformation Highlights

1. Draft Law on Investment: Breakthrough to promote private investment and enhance national competitiveness
After more than 05 years of implementation, alongside its positive outcomes, the Law on Investment 2020 has revealed several limitations concerning the provisions on investors’ freedom of business, investment incentive and support policies, as well as procedures for carrying out investment and business activities in Vietnam.
With a view to addressing these shortcomings, the Ministry of Planning and Investment has completed the first draft of the Law on Business Investment (“Draft”). The Draft introduces major reform proposals, succeeding and replacing the Law on Investment 2020, with the objective of removing barriers to investment activities, promoting private sector investment, and enhancing national competitiveness. The key highlights of the Draft are as follows:

A significant proposed change under the Draft is the addition of cases exempted from investment policy approval. Specifically, the Draft provides that the following projects shall not be subject to investment policy approval procedures: projects already specified in sectoral or provincial master plans with defined names, scales, objectives, locations, and timelines; projects awarded through land use right auctions or bidding for land-use projects; and mineral exploitation or industrial cluster infrastructure development projects. This change aims to simplify procedures and resolve existing bottlenecks in the current implementation process.
Regarding foreign investment activities, under the current Law on Investment 2020, a foreign investor must have an approved investment project before establishing an economic organization in Vietnam. However, the Draft proposes to abolish this principle, allowing foreign investors to apply for an Enterprise Registration Certificate (ERC) before applying for an Investment Registration Certificate (IRC). This approach increases flexibility for investors but also necessitates stronger control over market access conditions at the enterprise establishment stage, as well as clear guidance on the timeline that the investor must obtain IRC after the issuance of ERC.

Another groundbreaking reform proposed in the Draft is the removal of 17 conditional business lines, including accounting services, rice export, labor subleasing, funeral services, overseas study consultancy, and performing arts, repairing, maintaining of cars, among others.

The Draft also proposes to abolish the list of conditional outward investment sectors and clarify the authority for issuing outward investment registration certificates. Specifically, outward investment projects with capital of VND 20 billion or more shall fall under the licensing authority of the Ministry of Planning and Investment. Projects with capital below VND 20 billion shall not be subject to the outward investment registration certificate requirement; instead, investors will only need to register foreign exchange transactions in accordance with the laws on foreign exchange management.

In addition, a notable revision concerns the adjustment of the scope and criteria for determining investment incentive locations. The Draft categorizes incentive areas into two groups: areas with difficult or particularly difficult socio-economic conditions; and industrial zones, export processing zones, high-tech zones, concentrated digital technology zones, and economic zones. Accordingly, industrial zones, export processing zones, high-tech zones, concentrated digital technology zones, and economic zones are now established as an independent group of incentive areas, rather than being classified within areas of difficult or particularly difficult socio-economic conditions as before. This approach enables a more tailored design of incentive policies aligned with the characteristics of each type of investment area.

Overall, the Draft represents an important institutional breakthrough, aiming to establish a more open, transparent, and competitive investment environment for both domestic and foreign investors. The proposed reforms — including the abolition and simplification of investment policy approval procedures, enhanced autonomy for foreign investors in enterprise establishment, and the substantial reduction of conditional business sectors — reaffirm the Government’s commitment to fostering private investment and improving Vietnam’s overall investment climate.

2. Breakthrough proposal in eliminating notarization and marital status certification in land and vehicle transactions

On October 9, 2025, the Ministry of Public Security has published the draft Resolution of the Government regarding the removal of notarization and marital status certification procedures (“Draft”). Aiming to meet the objectives of administrative procedure reform and national digital transformation, the Draft Resolution proposes to abolish the requirements for notarization and marital status certification in land and vehicle transactions for cases where data has already been digitized and verified.

The Draft seeks to simplify administrative procedures by completely eliminating paper-based documents for two types of transactions: transactions involving the sale, transfer, donation, mortgage, or inheritance of land use rights and assets attached to land; and) transactions involving the sale, transfer, donation, or registration of ownership of vehicles.

Accordingly, instead of requiring notarization and paper-based certification, these procedures would be integrated and automated based on existing data available in the national databases on population, civil status, land, and vehicles.

The Draft also emphasizes and affirms the legal validity of digitized and electronically authenticated data. Data collected and verified from these national databases will have the same legal effect as paper documents, and citizens will not be required to resubmit documents that already exist in the national data systems. Officials and civil servants will be responsible for retrieving and verifying information directly from the electronic system, rather than requesting paper copies from citizens.

With respect to implementation procedures, the Draft Resolution proposes to abolish the requirement for notarization and marital status certification in relevant administrative processes to eliminate unnecessary formalities, thereby reducing costs, shortening processing time, and minimizing overlapping documentation.
For cases where data has been digitized and authenticated, citizens will only need to log into the National Public Service Portal or the VNeID application to declare transaction information. The electronic data system will automatically verify personal information, marital status, land use rights, and vehicle ownership. Contracts will be created, signed, and stored on the electronic platform, with transaction results returned either online or in person, depending on the citizen’s choice.

In cases where such data has not yet been digitized within the national databases, the competent authority may request paper documents once only, while also guiding citizens on updating their information to enable simplified procedures for future transactions.

Overall, the Draft Resolution is considered a breakthrough in institutional reform, establishing a legal framework for the use of electronic data in civil transactions. It is expected to significantly reduce administrative procedures, costs, and processing time for both citizens and businesses, while enhancing public satisfaction and trust in the Government amid the ongoing process of digital transformation and international integration.

3. Tightening measures against delayed or evasive social insurance contributions
On 30 November 2025, Decree No. 274/2025/NĐ-CP, detailing the implementation of several provisions of the Law on Social Insurance regarding delayed and evasive contributions to compulsory social insurance and unemployment insurance, as well as complaints and denunciations in the field of social insurance (“Decree 274”), will officially take effect.

Under Decree 274, enterprises that delay or evade the payment of compulsory social insurance and unemployment insurance contributions shall be required to pay an additional interest of 0.03% per day, calculated based on the amount and number of days of delayed or unpaid contributions. This is a strong measure aimed at enhancing deterrence, safeguarding employees’ entitlements, and ensuring strict compliance with insurance obligations.

Notably, Decree 274 also provides that acts of delayed payment may be reclassified as acts of evasion if the enterprise fails to remedy the delay within 60 days from the statutory payment deadline or fails to fulfil its obligations after receiving a written reminder from the social insurance authority.

However, in the spirit of supporting and accompanying enterprises, Decree 274 also recognizes certain circumstances that shall not be considered as acts of evasion, including: severe natural disasters such as storms, floods, or droughts; dangerous epidemics officially declared by competent authorities; impacts caused by a state of emergency as prescribed by law; and other force majeure events as defined under the Civil Code.

With the promulgation of Decree 274, the Government reaffirms its determination to tighten discipline in the implementation of social insurance obligations, while simultaneously promoting transparency and accountability among enterprises in ensuring the lawful rights and benefits of employees.

4. Guidance on monthly invoice issuance

On October 10, 2025, the Da Nang City Tax Department issued Official Letter No. 1820/DAN-QLDN2 (“Official Letter”) to address enterprises’ inquiries regarding the timing of invoice issuance and the delivery of goods and services at the end of the month in accordance with regulations on invoices and supporting documents.

The Official Letter reaffirms the general principle that the time of invoice issuance is the time when ownership or the right to use goods is transferred to the buyer, or when the provision of services is completed.

Only in cases involving the sale of goods or the provision of services in large quantities and on a frequent basis—such as electricity, water supply, television, telecommunications, securities, computerized lottery, and transportation support services for railway, road, and aviation—may the seller issue monthly invoices based on an agreed-upon billing cycle between the parties.

Accordingly, the Official Letter emphasizes that for transactions not falling under the aforementioned categories, enterprises are not permitted to issue invoices on a monthly basis, even if the parties have a written agreement stipulating the issuance of monthly invoices.

5. Ho Chi Minh City implements electronic business registration certificates

On October 24, 2025, the Ho Chi Minh City Department of Finance issued Notice No. 10441/TB-STC on the implementation of digital signing for the results of administrative procedures in the field of enterprise registration.

According to the notice, from October 25, 2025, the results of administrative procedures such as applications for new business registration certificates or amended business registration certificates will be issued in electronic form instead of paper form as previously. The business registration authority will no longer issue paper versions, and the electronic certificates will hold the same legal validity as paper documents.

The implementation of electronic business registration certificates in Ho Chi Minh City marks the next step in the city’s digital transformation of business registration procedures, helping to simplify processes, reduce costs, and save time for enterprises.

Previously, the Hanoi Business Registration Office had already adopted the issuance of electronic certificates, and this policy is expected to be rolled out nationwide in the near future in line with the overall trend toward digitalization.

The introduction of electronic business registration certificates demonstrates the government’s strong commitment to administrative reform and digital transformation, while also facilitating a more convenient and efficient process for enterprises in fulfilling their business registration requirements.

Decree 239: Vietnam streamlines investment procedures and encourage digital & semiconductor sectors

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On 3 September 2025, the Government issued Decree No. 239/2025/ND-CP (“Decree 239”), amending Decree No. 31/2021/ND-CP guiding the implementation of the Law on Investment. Compared with previous regulations, Decree 239 represents a major policy shift aimed at addressing practical challenges and aligning investment regulations with Vietnam’s new socio-economic development strategy.

A key reform is the reduction of processing times for investment procedures. The timeline for issuing an Investment Registration Certificate has been shortened from 15 days to 10 days. Likewise, the appraisal and approval periods for investment policy decisions have been reduced to 38 days for projects under the authority of the Prime Minister and 26 days for those under the authority of provincial People’s Committees. These reforms are expected to cut administrative time, reduce costs for investors, and enhance Vietnam’s competitiveness.

Another notable change is the prioritization of digital technology and semiconductors. For the first time, the concept of a “digital technology zone” has been introduced, with a legal status equivalent to industrial zones, export processing zones. Projects in these zones will enjoy similar incentives, procedures, and management frameworks. In addition, the list of sectors eligible for investment incentives has been expanded to cover activities such as AI data centers, semiconductor chip R&D, design, manufacturing, packaging, and testing, as well as digital startups and infrastructure for digital technology zones. This marks a significant step in strengthening Vietnam’s legal foundation for digital infrastructure and the semiconductor supply chain.

Important revisions also concern projects involving land use. New regulations of Decree 239 provide that investment project terms and implementation schedules will now be calculated from the date of actual land handover, rather than from the date of investment approval. If land handover is delayed by the authorities, investors are not required to adjust their approval decision or IRC; instead, project timelines will follow the land handover record. This change is designed to prevent project delays caused by administrative bottlenecks.

Market access rules for foreign investors have also been eased. Sectors related to the production and trading of weapons, explosives, support tools, and certain military equipment have been moved from the “restricted market access list” to the “conditional market access list.” Accordingly, foreign investors may now enter these sectors subject to compliance with specific conditions and requirements.

Overall, Decree 239 represents a comprehensive improvement of Vietnam’s investment framework. By shortening appraisal timelines, linking project schedules to actual land handovers, expanding incentivized sectors—particularly in digital technology, AI, and semiconductors—and enabling conditional foreign market access in defense-related industries, the Decree is expected to reduce costs, improve legal certainty, and attract high-value investments. At the same time, investors should be aware of potential transitional risks, such as differing interpretations across localities, technical requirements for digital systems, and sector-specific compliance conditions.

Draft Law on Food Safety 2025: Proposal to tighten food production and trading activities

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After more than 15 years of implementation, the Law on Food Safety 2010 has revealed significant limitations, particularly in keeping pace with modern production practices, e-commerce, and emerging technologies. In response, the National Assembly is currently drafting the Law on Food Safety (Amended) (“Draft”), with the objective of enhancing regulatory efficiency, strengthening food safety controls, and protecting consumer rights.

The Draft places strong emphasis on tightening conditions for food trading on e-commerce environment. A key revision is the requirement for online food businesses, in addition to compliance with existing food safety regulations, to provide sufficient information for traceability and meet further obligations such as ensuring consumer data confidentiality and publicly disclosing their licenses and details of registrants or product self-declarations.

Futhermore, the Draft also proposes stricter rules on food advertising. The Draft expands the scope of prohibited practices, including the use of images and words of doctors, pharmacists, and patients in advertisements. It also requires Key Opinion Leaders to disclose sponsorship relationships when advertising health supplements, dietary supplements, food for special dietary uses, and nutritional products for children under 36 months of age.

Packaging and labeling requirements are also proposed to be more stringent. Outer packaging labels of food and food ingredients must include barcodes, QR codes, DataMatrix codes, or other forms of code printing, in accordance with relevant coding regulations. This measure aims to strengthen transparency and facilitate traceability throughout the supply chain.

Another important proposal of the Draft is the classification of food products by risk level: high, medium, or low. Depending on their assessed risk to consumer health, food products and ingredients will be subject to either registration for circulation to the competent state authority or self-declaration. Both circulation registration certificates and self-declarations will have a five-year validity period. This reform seeks to improve oversight, prevent indefinite product announcements, and ensure that product information is regularly updated. Products classified as high-risk or medium-risk and subject to circulation registration is proposed to include health supplements, food for special dietary uses, nutritional products for children under 36 months of age, and other dietary supplements.

Overall, the Draft reflects the State’s determination to strengthen standards and tighten quality management in the food sector. By reinforcing product controls, increasing transparency, and expanding penalties, the Draft aims to curb the circulation of unhygienic and counterfeit food, better protect public health, and align Vietnam’s food safety management system with the demands of a modern, technology-driven economy.

Guidance on salaries as the basis for compulsory social insurance contributions

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On 5 September 2025, the Department of Wages and Social Insurance issued Official Letter No. 1198/CTL&BHXH-BHXH (“Official Letter”), providing clarification on issues raised by organizations regarding the determination of salaries as the basis for compulsory social insurance contributions under Decree No. 158/2025/NĐ-CP.

The Official Letter affirms that the monthly salary used as the basis for compulsory social insurance contributions shall include job- or position-based salary, salary allowances, and other additional payments. For employees whose wages are determined by the employer, the job- or position-based salary must be calculated monthly based on the salary system reflected in the labor contract.

Salary allowances will also be included where they are paid as compensation for factors such as working conditions, job complexity, living conditions, or labor market attractiveness, provided that these allowances are specified in the labor contract. Similarly, other additional payments form part of the social insurance contribution base if they are (i) stated as a definite amount together with salary, (ii) agreed in the labor contract, and (iii) paid regularly and stably in each pay period.

In contrast, other benefits and welfare schemes specified in separate sections of the labor contract, including but not limited to: bonuses, initiative rewards; meal allowances; allowances for transportation, fuel, telephone, housing, childcare, or child-rearing; support provided in cases where an employee’s family member passes away, gets married, or on the employee’s birthday; allowances for employees facing difficulties due to occupational accidents or diseases; and other forms of support or allowances, such payments shall not be deemed as salary for the purpose of calculating compulsory social insurance contributions for employees.

With this guidance, enterprises and organizations now have a clearer legal basis for determining the components of salary subject to compulsory social insurance contributions, ensuring compliance with Vietnam’s updated regulations.

New Guidance on the Authority for Issuing Construction Permits

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On 8 September 2025, the Ministry of Construction issued Official Letter No. 9600/BXD-KTQLXD (“Official Letter”) to clarify the authority for issuing construction permits in the context of implementing the two-tier local government model.

According to the Official Letter, the authority to issue construction permits shall be determined based on the grade of the construction works. Specifically, Commune-level People’s Committees are authorized to issue construction permits for grade-III and grade-IV construction works, as well as detached houses within their respective jurisdictions. Provincial-level People’s Committees are authorized to issue construction permits for special-grade, grade-I, and grade-II construction works, and for other works that require construction permits, except those under the authority of commune-level People’s Committees as mentioned above.

In addition, depending on local circumstances, provincial-level People’s Committees may delegate authority to the Department of Construction, Management Boards of industrial zones, export processing zones, high-tech zones, or economic zones to issue construction permits within their scope of management.

Accordingly, under this new guidance from the Ministry of Construction, enterprises and individuals should determine the appropriate authority for construction permitting based on the grade classification of their projects.

Decree 219: Vietnam Opens Door Wider For Foreign Expats With New Work Permit Rules

On 7 August 2025, the Government issued Decree No. 219/2025/ND-CP (“Decree 219”) on foreign employees working in Vietnam, replacing Decree No. 152/2020/ND-CP. The new Decree 219 is aimed at streamlining procedures and attracting more foreign experts, while maintaining stricter standards in certain areas.

A key reform under Decree 219 is the relaxation of experience requirements for expert positions. Foreign employees with a university degree or higher are now required to have only two years of relevant experience, instead of three as previously mandated. For degree holders in government-prioritized fields—such as finance, technology, innovation, and digital transformation—the requirement is further reduced to just one year.

Decree 219 also broadens the scope of exemptions from work permit requirements. Foreigners working in priority sectors, once confirmed by the relevant ministry or provincial authority, are no longer required to obtain a work permit but only need to file for confirmation of exemption eligibility.

Another major change is the integration of procedures for determining the demand for foreign workers and applying for a work permit. Previously, employers had to complete these steps separately, resulting in a statutory timeline of 15 working days. Under Decree 219, the process has been consolidated into a single step with a total processing time of 10 working days.

In contrast to these simplifications, Decree 219 introduces stricter rules on health certificates. Only certificates issued by medical institutions in countries or territories that have mutual recognition agreements with Vietnam will be accepted for work permit applications, replacing the previous general recognition of foreign certificates issued within 12 months.

Overall, Decree 219 reflects Vietnam’s effort to make its labor market more open and competitive for foreign professionals, while ensuring higher standards in health and compliance. The changes are expected to ease administrative burdens for businesses, shorten timelines, and create more favorable conditions for highly skilled foreigners to work in Vietnam.

Vietnam Drafts Major Revisions to Personal Income Tax Regime

On 17 July 2025, the National Assembly released the Draft Personal Income Tax Law (“Draft”), introducing substantial policy changes intended to align with Vietnam’s broader reform agenda and the rapid transformation of the global economy. If adopted, the new law would reshape the scope of taxable income, revise tax brackets, and adjust key deductions, reflecting both fiscal and social policy objectives.

One of the most notable proposals is the expansion of taxable income categories to capture emerging asset classes and transactions that had previously fallen outside the tax regime, resulting in revenue leakage. Under the Draft, income from the transfer of Vietnam national internet domains, emission reduction certificates, carbon credits, green bonds, automobile license plates obtained via auction (together with the associated vehicles), and digital assets—including virtual and tokenized assets—would become taxable. While most such income would be taxed at 5% on the portion exceeding VND 10 million, digital asset transfers would instead be subject to a flat 0.1% levy on transaction value.

The Draft also seeks to restructure the personal income tax schedule by reducing the number of brackets from seven to five, thereby simplifying the regime. Two alternative schedules have been proposed, both maintaining a progressive structure but adjusting the thresholds for middle- and high-income earners. The Ministry of Finance is currently seeking public feedback on which schedule should be adopted.

In recognition of inflationary pressures and the need to support households, the Draft proposes to increase family circumstance deductions. Taxpayers could claim up to VND 15.5 million per month (VND 186 million annually), while deductions for each dependent would rise to VND 6.2 million per month. This adjustment is intended to ease the financial burden on employees, boost disposable income, and stimulate domestic consumption.

Another key proposal relates to real estate transfer taxation. Where purchase price, sale price, and related expenses are verifiable, taxable income would be subject to a rate of up to 20%. In cases where these figures cannot be determined, tax would be calculated based on the holding period of the property. A progressive approach is suggested, with shorter holding periods (under two years) taxed at higher rates—up to 10% of transfer value—to discourage speculative transactions and stabilize the property market.

At this stage, all provisions remain proposals. The Ministry of Finance, in coordination with the Government, will continue to study, refine, and collect feedback from stakeholders before finalizing the law. These reforms, if adopted, would not only expand Vietnam’s tax base but also promote equity, support living standards, and help guide sustainable economic development.