Key Business Law Updates in Vietnam (2025)

As Vietnam continues to develop and expand its economy, the legal landscape governing business and corporate practices is evolving in tandem. In 2025, several key updates to business law reflect the government’s ongoing commitment to enhancing the investment environment, protecting intellectual property rights, and improving compliance with international standards. Understanding these legal updates is essential for local and foreign businesses operating in Vietnam. This article provides an overview of the key business law updates in Vietnam for 2025, highlighting significant changes and their implications for businesses.

1. Amendments to the Law on Enterprises

In 2025, the Vietnamese National Assembly approved significant amendments to the Law on Enterprises, which governs the formation, operation, and dissolution of businesses in the country. Key updates include:

1.1 Simplified Registration Process

The revised Law on Enterprises has streamlined the business registration process to ease market entry for both local and foreign investors. Key changes encompass:

• Online Registration: The law introduces an online business registration system, allowing businesses to submit applications electronically for faster processing.
• Single Registration Authority: The consolidation of registration processes into a single authority has simplified the overall experience, reducing the bureaucratic burden on entrepreneurs.

1.2 Enhanced Corporate Governance

Amendments to corporate governance provisions in the law require greater transparency and accountability within companies. Notable changes include:

• Board Composition: New requirements for corporate boards include a mandatory number of independent directors, fostering transparency and good governance practices.
• Shareholder Rights: Enhanced protections for minority shareholders are included, ensuring their rights are safeguarded in corporate decisions and transactions.

2. Updates to the Law on Investment

The Law on Investment, effective from 2025, has undergone revisions aimed at attracting foreign direct investment (FDI) and improving the overall investment climate. Important updates include:

2.1 Expanded Investment Sectors

The revised law broadens the list of sectors open to foreign investment and introduces incentives for investments in sectors deemed pivotal for national economic development. Key aspects include:

• High-Tech and Green Investments: Emphasis is placed on encouraging investments in high-tech industries and environmentally friendly projects, with attractive incentives and reduced regulatory obstacles.
• Infrastructure Development: Increased openness to foreign investment in infrastructure projects, particularly through public-private partnerships (PPPs), is a focus area in the revised law.

2.2 Investor Protection Enhancements

To bolster the attractiveness of Vietnam as an investment destination, the updated law strengthens protections for foreign investors:

• Investment Dispute Resolution: Provisions for resolving investment disputes, including the recognition and enforcement of international arbitration awards, are strengthened, ensuring greater legal security for foreign investors.
• Compensation for Expropriation: New mechanisms for compensation in the event of expropriation or nationalization of investments have been initiated, emphasizing fair treatment of investors.

3. Revised Labor Code

The Revised Labor Code, implemented in 2025, reflects Vietnam’s commitment to improving labor standards and protecting worker rights. Significant changes include:

3.1 Flexible Work Arrangements

In recognition of evolving workplace dynamics, the revised Labor Code allows for greater flexibility in work arrangements, promoting remote work and flexible hours while ensuring worker rights are protected.

3.2 Enhanced Employee Protections

Stronger protections for workers include improvements in areas such as:

• Minimum Wage: Adjustments to the regulated minimum wage ensure fair compensation in light of changing economic conditions.
• Parental Leave: Expanded maternity and paternity leave policies reflect a commitment to supporting family welfare and encouraging work-life balance.

3.3 Dispute Resolution Mechanisms

The revised code emphasizes alternative dispute resolution mechanisms, encouraging mediation and negotiation before resorting to formal legal proceedings, enhancing workplace harmony.

4. Intellectual Property Law Revisions

The Intellectual Property Law saw significant updates in 2025, aimed at strengthening IP protections and compliance with international standards. Key revisions include:

4.1 Simplified Registration Procedures

The process for registering trademarks and patents has been streamlined, reducing the administrative burden on applicants:

• Online Registration: Applicants can now complete trademark and patent registrations electronically, expediting the process.
• Reduced Processing Times: Streamlined review procedures aim to decrease the time required for applications to be processed and approved.

4.2 Enhanced Enforcement Mechanisms

Stricter enforcement measures have been implemented to combat intellectual property theft and counterfeiting, providing rights holders with better tools for protection:

• Increased Penalties: Enhanced penalties for IP infringement serve as a deterrent for potential violators, reinforcing the significance of IP rights.
• Collaboration with Law Enforcement: Strengthened collaboration between IP rights holders and law enforcement agencies ensures proactive response mechanisms to combat counterfeiting and piracy.

5. Tax Reforms Impacting Businesses

As part of its efforts to create a more conducive business environment, the Vietnamese government has introduced various tax reforms in 2025. Key updates include:

5.1 Adjustments to Corporate Tax Rates

Revisions to corporate income tax rates aim to align with competitive benchmarks in the region, providing favorable tax treatment for businesses:

• Incentives for Startups: Newly established businesses may benefit from reduced corporate tax rates for designated periods, promoting entrepreneurship and innovation.

5.2 VAT Regulations

Clearer guidelines on Value Added Tax (VAT) have been established, ensuring consistency and transparency in tax application:

• Simplified Procedures: Streamlining VAT filing processes reduces administrative burdens on businesses and encourages compliance.

Conclusion

Navigating the legal landscape for doing business in Vietnam can be complex, but understanding the key legal frameworks and recent updates is critical for multinational companies and local enterprises alike. The amendments to the Law on Investment, the revised Labor Code, enhancements in Intellectual Property laws, and ongoing tax reforms present significant opportunities for businesses in Vietnam while reinforcing the importance of compliance.

By engaging qualified legal professionals, such as lawyers and investment consultants, companies can effectively navigate the regulatory environment, minimize risks, and explore new opportunities for growth. Keeping abreast of these developments will empower businesses to leverage Vietnam’s evolving market landscape while ensuring compliance with local laws, ultimately leading to sustainable success in this dynamic economy.