Vietnam's 2025–2026 Reforms: From Policy on Paper to Operating Reality
How a sweeping package of legal and administrative changes is reshaping the investment landscape, and who stands to benefit
Vietnam has long been positioned as one of Southeast Asia's most compelling growth stories: a young workforce, a strategic role in ASEAN supply chains, and expanding market access through agreements like the EVFTA. But in July 2025, the government moved beyond potential and began delivering structural change, a reform package built on four pillars: greater transparency, improved administrative efficiency, a simpler business environment, and stronger anti-corruption enforcement.
Fourteen months on, the evidence suggests this is no longer reform on paper. It is becoming an operating environment.
Pillar 1: Enhanced Transparency in the Business Environment
Vietnam Reforms is phasing out informal tax practices in favor of standardized, internationally aligned compliance.
Resolution No. 198/2025/QH15 (effective 17 May 2025) ends presumptive taxation for household and individual businesses, requiring standard tax obligations instead.
Circular No. 152/2025/TT-BTC (effective 1 January 2026) introduces standardized accounting guidelines for household and individual businesses.
Decision No. 345/QD-BTC sets a roadmap toward IFRS adoption, voluntary through 2025, expanding to mandatory status for certain large enterprises afterward.
Together, these measures mean local suppliers, distributors, and acquisition targets are becoming genuinely assessable, a critical shift for due diligence processes that previously stalled on poor-quality financial records.
Pillar 2: Reducing Bureaucratic Work and Boosting Efficiency
Perhaps the most visible reform has been Vietnam's administrative consolidation.
Resolution No. 202/2025/QH15 reorganized 63 provinces into 34 provincial-level units.
Law No. 72/2025/QH15 eliminated the district level entirely, moving to a two-tier province–commune government model.
Decree No. 118/2025/ND-CP reallocated 346 former district-level procedures, 18 to provincial level, 278 to commune level, and 50 abolished outright.
The government workforce is being cut by 20–30%, paired with a shift to performance-based evaluation under Law No. 80/2025/QH15.
The results are tangible. In the Kon Tum–Quang Ngai wind power complex, a project that previously required approvals from two provinces, two compensation frameworks, and two separate EIA councils, costing 2–3 years in delays, now needs just one document set and one land-price framework, potentially saving millions in opportunity costs. Meanwhile, new Hai Phong (post-merger with Hai Duong) recorded 11.81% GRDP growth in 2025, reaching nearly $30 billion in economic scale, now ranked third nationwide.
Pillar 3: Deeper Economic and Institutional Reform
Liberalization is proceeding, though selectively, across key sectors:
Direct Power Purchase Agreements (DPPA) under Decree No. 57/2025/ND-CP are now live. TTC Duc Hue 2 became the first solar plant to trade through the national grid under this mechanism, with Samsung Electronics Vietnam Thai Nguyen as its pioneering customer.
PPP infrastructure rules (Decree No. 243/2025/ND-CP) now allow project bond issuance and target 15-day investment approvals via Economic Zone Management Boards.
Green Finance Framework (Decision No. 21/2025/QD-TTg) establishes a technical taxonomy for classifying green projects, unlocking access to green bonds and concessional finance from the IFC and ADB.
Foreign ownership limits are easing, notably a 49% cap for eligible credit institutions, alongside a shortened IPO listing window (from 90 to 30 days).
Pillar 4: Strengthening Governance and Fighting Corruption
Vietnam is also tightening enforcement and building trust mechanisms:
Law No. 136/2025/QH15 strengthens anti-bribery and anti-corruption enforcement, working alongside the two-tier government model to create cross-level accountability.
Whistleblower protections now cover life, health, property, employment, and even extend to immediate family members.
Alignment with OECD Corporate Governance Principles, supported by the IFC and SECO, is pushing public companies toward greater board independence, stronger minority shareholder protections, and enhanced ESG reporting.
Three Shifts That Matter Most
Predictability has improved more than speed. Formalized tax rules, new accounting standards, and an IFRS roadmap mean businesses can now assess local counterparts with far greater confidence.
Formalization is the clear direction of travel, informal practices are being systematically replaced with standardized, internationally recognized frameworks.
Capital access is opening selectively, not universally. The 49% FOL for qualifying credit institutions, the shortened IPO window, live DPPA mechanisms, and an enforceable green taxonomy all point to sector specific liberalization rather than blanket deregulation.
Who Should Act Now
The reforms clearly favor specific investor profiles:
Manufacturers with multi-province footprints benefiting from post-merger consolidation
Energy-intensive industrial buyers who can now contract renewable power directly via DPPA
Infrastructure and construction sponsors leveraging standardized PPP structures and faster approvals
Financial and banking strategic investors entering under the new 49% foreign ownership ceiling
ESG-mandated funds accessing green bonds and concessional finance through the new taxonomy
Early-stage and venture investors benefiting from CIT exemptions on innovative start-up exits under Decree No. 20/2026
Acquirers and JV partners now able to conduct meaningful diligence on previously opaque targets
The Bottom Line
Vietnam's 2025–2026 reform package represents a genuine structural shift, not merely regulatory announcements, but changes already visible in project timelines, capital markets, and corporate governance standards. For businesses willing to move early and match their strategy to the specific sectors where liberalization is occurring, the window is open now. FULL REPORT IS HERE
Veridica is a boutique consulting firm helping international businesses navigate market entry, entity structuring, site selection, and partner due diligence in Vietnam and Southeast Asia. For tailored guidance on how these reforms affect your investment strategy, contact us at sophie@veridica.co or via WhatsApp/Viber at +84 705 150918.
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