ALIAT – Legal Updates

Legal Updates

Vietnam Plans 7.2% Rise in Regional Minimum Wages from 2026

In line with the Politburo’s Resolution No. 83-KL/TW dated 21 June 2024 on wage reform, the Government has submitted to the National Assembly for consideration the Draft Decree on Minimum Wages for Employees Working under Labor Contracts (“Draft”). Once adopted, the Draft will replace Decree No. 74/2024/ND-CP, which has been in effect since 1 July 2024.

New Guidance on registration of Internal Labor Rules and Collective Labor Agreements in Ho Chi Minh City

Legal Updates

On 14 August 2025, the Department of Home Affairs of Ho Chi Minh City issued Official Letter No. 1351/SNV-LDTLBHXH, providing guidance on the submission and management of enterprises’ Internal Labor Rules and Collective Labor Agreements under…

2025 Enterprise Law Amendments: New Rules for Management, Bonds, and Transparency

Legal Updates

The 2025 Amended Law on Enterprises, effective from 1 July 2025, includes key updates: public employees in scientific organizations can now contribute capital and manage enterprises; non-public joint stock companies face stricter bond issuance regulations; and enterprises must identify and report their beneficial owners to enhance financial transparency and anti-money laundering efforts.

Business Impacts of the 2025 Provincial Restructuring

Legal Updates

ince 1 July 2025, Vietnam has officially operated under a new structure of provincial-level administrative units, following Resolution No. 202/2025/QH15 on the restructuring of provincial-level administrative units and the implementation of a two-tier local government model (provincial level and grassroots level).

Continuation of 2% VAT Reduction Until the End of 2026

Legal Updates

In response to the significant negative impacts of U.S. tariff measures, global conflicts, and political instability on the Vietnamese economy, the National Assembly passed Resolution No. 204/2025/QH15 on 17 June 2025, extending support for businesses through a reduction of value-added tax (“VAT”).

Groundbreaking Reforms under the Law on Corporate Income Tax 2025

Legal Updates

On June 14, 2025, Vietnam's National Assembly passed the amended Law on Corporate Income Tax 2025, aimed at supporting SMEs and encouraging household businesses to formalize. The law introduces preferential tax rates of 15% for businesses with revenue under VND 3 billion, and 17% for those with revenue between VND 3 billion and VND 50 billion. It also offers a CIT exemption for businesses converted from household businesses with revenue under VND 50 billion, for two years. These reforms aim to boost SME growth and contribute to Vietnam’s economic development.

New Rules Every Household Business

Legal Updates, Resources

Starting from 2025, household businesses in Vietnam will transition to a transparent tax declaration system, replacing the fixed tax method. From June 1, 2025, businesses with annual revenue over 1 billion VND must use electronic invoices and file taxes regularly. The fixed tax method will be abolished from January 1, 2026, and business owners will be required to participate in mandatory social insurance starting July 1, 2025.

Guidance on invoices when selling vouchers

Legal Updates

The Tax Sub-Department of Region XVI has issued Official Letter 7629/CCTKV. XVI-QLDN dated 14/5/2025 to provide guidance to enterprises on resolving certain issues related to invoice issuance in cases involving the sale of shopping vouchers.

Guidance on VAT exemption or reduction for damaged imported goods

Legal Updates

On May 6, 2025, the Customs Department issued Official Letter No. 4072/CHQ-NVTHQ providing guidance for enteprises on the handling of value-added tax (VAT) for cases where imported goods are damaged due to fire or storms.

Vietnam VAT draft decree clarification deduction refunds pricing

Legal Updates

As part of efforts to implement the revised 2024 Law on Value-Added Tax, the Ministry of Finance is developing a Draft Decree (“Draft”) that aims to clarify and operationalize new VAT regulations. The Draft is expected to improve tax transparency, strengthen administrative oversight, and assist businesses in achieving compliance. Key proposals under the Draft include several significant adjustments.

Stay ahead of the curve with the latest legal insights and updates from ALiat Legal.

Sign up with your email below to stay informed.