Post by : Anish

A day of change

July 1 marks a milestone in Vietnam's legal landscape. The National Assembly approved at least 15 laws and resolutions during its 9th session, with many taking immediate effect this date. Together, these measures bring wide-ranging reforms—affecting everything from nationality and data privacy to social insurance, tax fairness, and government organization.

Nationality law updated

From July 1, the amended Law on Vietnamese Nationality offers clarity and flexibility for children born to one Vietnamese and one foreign parent. If both parents agree, the child can now choose Vietnamese nationality at birth registration. If no agreement is reached but the child is born in Vietnam, they are automatically granted Vietnamese nationality.

New administrative e-ID mandate

Decree 69 introduces a required e-ID Vietnam account for all corporate entities starting July 1. Companies must now maintain accurate beneficial‑ownership records for state agencies to inspect. The Ministry of Public Security will issue organizational e‑IDs within 3–15 working days, enabling streamlined administrative procedures.

Data protection framework

The long-awaited Data Law enforces data localization and falls under national cybersecurity. It mandates a national database and data centre, defining rules around digital data that apply across public and private sectors.

Social insurance overhaul

Major social insurance reforms begin July 1 under the amended Social Insurance Law. Lump‑sum withdrawals are now restricted for future participants, with a minimum 15‑year contribution required for pension eligibility. Retirement ages are gradually rising, and men with 15–20 years of contributions will receive improved pension benefits. A social pension for seniors above 70–75 years is added, and informal workers can now join voluntary schemes for maternity, pensions, and accident coverage.

Tax system reforms

A range of tax changes also come into force:

• VAT law now requires non-cash receipts (e.g., bank transfer) for all input VAT claims—even under VNĐ20 million—aimed at curbing invoice fraud and promoting transparency.

• Corporate and personal income tax and special consumption tax rules are amended to simplify compliance and address loopholes.

These are part of broader efforts to improve fairness and efficacy in the tax code.

Railway and bank law updates

The revised Railway Law grants planning authority to the Ministry of Construction, opens the door to PPP investment, and clarifies resettlement financing within track projects.
The Credit Institutions Law shifts zero-interest, no-collateral loan authority—from the Prime Minister to the State Bank—helping crisis-strapped banks after October 15.

Defence, Fatherland Front, criminal process reforms

Effective July 1, updates to the Law on National Defence, the Law on the Vietnam Fatherland Front, Trade Union Law, Youth Law, and Grassroots Democracy Law strengthen institutional frameworks and authority alignment.
Criminal Procedure amendments—covering 120 existing articles and adding emergency detention/extradition rules—also take effect, reinforcing legal safeguards and timeliness.

Court system overhaul

A landmark change establishes a two-tier administrative structure by abolishing the district level and merging provinces and communes under a revised constitution (Resolution 203). It property reorganizes courts and unifies procurators in line with administrative adjustments.

Streamlining atomic energy & tech innovation

While most provisions begin later in 2025 or 2026, sections of the amended Science, Technology & Innovation Law and Railway Law activate on July 1. They support flexible funding for research and energy development.

Abolishing death‑penalty crimes

Parallel to the 15 laws is Vietnam’s removal of the death penalty from eight crimes—such as embezzlement, fake medicines, and espionage—effective July 1. High-profile convicts like tycoon Truong My Lan may have existing sentences reduced to life imprisonment.

What this means

These reforms collectively aim to:

• Modernize governance and national unity structure

• Strengthen privacy and digital accountability

• Protect workers and retirees through social insurance

• Enhance fiscal fairness and transparency

• Support infrastructure and financial resilience

For individuals and businesses, the changes bring greater compliance responsibilities—but also clarity, security, and inclusion.

What to watch now

Going forward, key developments include:

• Enforcement clarity around e‑ID and VAT proof requirements

• Roll-out of expanded social‑welfare schemes for retirees and informal workers

• Smooth implementation of court restructuring and administrative reorganization

• Case impact, especially death‑penalty commutations and implications for corruption trials

Disclaimer:

This article has been prepared by Newsible Asia purely for informational and editorial purposes. The information is based on publicly available sources as of July 2025 and does not constitute financial, medical, or professional advice.

Vietnam Legal Reform