The Week in Review: Compliance, Tax, and Economic Updates for Doing Business in Vietnam

2025 Compliance, Tax, and Economic Trends in Vietnam You Need to Know

Doing business in Vietnam in 2025 means staying alert to rapid changes in regulations, tax policy, and economic conditions. This Vietnam Business Update covers the latest legal reforms, compliance requirements, and economic developments that will affect business operations and investment decisions.

From tougher invoice penalties to foreign labor regulation changes, these updates are shaping the way companies operate in Vietnam’s dynamic market. Whether you run a local SME or a foreign-invested enterprise, understanding these changes is critical for success.

Stricter Penalties for Invoice Violations in Vietnam

The Ministry of Finance has proposed a new compliance framework with significantly higher fines for invoice violations. The highest penalty could reach 80 million VND for failing to issue invoices when selling goods or services.

Updated Penalty Structure

• Level 1: 1–2 million VND – e.g., not issuing 1–10 invoices for promotional goods or product samples.
• Level 2–4: Escalating fines for larger numbers of missing invoices or repeated violations.
• Level 5: 60–80 million VND – e.g., failing to issue 50+ invoices for actual sales.

The draft decree also widens the scope of liable parties, including:

• Individuals or organizations authorized to handle tax obligations on behalf of taxpayers.
• Entities managing tax registration, declarations, or payments for others.

Business in Vietnam takeaway: Strengthen your invoicing controls now. Even minor oversights could trigger significant penalties under the proposed rules.

Proposed Personal Income Tax Changes

The Ministry of Finance is amending the Personal Income Tax Law, with a focus on family deductions. Amendments to the Personal Income Tax (PIT) Law could reshape payroll calculations and benefit structures for companies doing business in Vietnam.

Key Proposed Adjustments:

• Index deductions to GDP growth and average per capita income growth.
• Allow deductions for medical and educational expenses for taxpayers and dependents if documented and not reimbursed.
• Widen initial progressive tax brackets to give low-income earners more relief.

An area of concern is the dependent deduction, set at just 4.4 million VND/month (40% of the taxpayer deduction of 11 million VND/month), which experts say doesn’t match real living costs.

Vietnam compliance takeaway: Employers should plan payroll updates in advance and prepare to adjust HR policies if the amendments take effect.

Credit Growth Limits to Be Removed in 2026

The Prime Minister has directed the State Bank of Vietnam (SBV) to begin phasing out credit growth limits—known as the “credit room”—starting in 2026.

Goals of the Reform

• Increase capital access for businesses and consumers.
• Direct lending towards priority growth sectors such as investment, exports, consumption, and innovation.
• Support lower interest rates through reduced operating costs and simpler loan procedures.

The SBV will establish eligibility criteria for participating banks to ensure financial system stability while enabling greater credit flexibility.

Business & Investment takeaway: This reform could make financing expansion projects in Vietnam more predictable and cost-effective.

Inflation Outlook in Vietnam Remains Stable

Vietnam’s inflation is currently under control and aligned with the government’s 4.5–5% target for 2025. 

Inflation Data:

• CPI Growth: Estimated 3.2–3.3% for the first seven months of 2025 according to the National Statistic Office's report.
• Upward pressures: Global commodity prices, certain food items, climate-related disruptions.
• Downward pressures: Abundant domestic food supply, tuition exemptions, and tax cuts.

International forecasts put Vietnam’s average inflation between 2.9–4.2% this year. The government continues to stress price stability to promote sustainable growth.

Doing business in Vietnam takeaway: Stable inflation helps businesses maintain competitive pricing and supports long-term investment planning.

New Compliance Rules for Hiring Foreign Labor in Vietnam

Decree No. 219/2025/ND-CP, effective August 7, 2025, brings notable changes for businesses hiring foreign workers.

Key Regulatory Updates

• Processing time: 10 working days for labor permit approvals after submission of a complete dossier.
• Authority: Provincial People’s Committees now manage labor permit issuance, extension, and revocation.
• Permit exemptions: Foreign workers in priority sectors—finance, science, technology, innovation, and digital transformation—are exempt if confirmed by relevant authorities.

Vietnam compliance takeaway: Companies in priority industries can benefit from faster onboarding of foreign talent without full permit procedures.

Final Insights for Business & Investment in Vietnam

Vietnam’s regulatory environment is evolving quickly, affecting taxation, compliance, financing, and labor. For both domestic enterprises and foreign investors, staying informed and proactive is essential to remain competitive.

• Review compliance procedures, especially around invoicing and payroll.
• Prepare for financing opportunities once credit limits are eased.
• Adjust HR strategies to align with new labor permit rules.
• Factor stable inflation into long-term investment and pricing plans.

Need tailored advice for doing business in Vietnam?

United Consulting helps companies navigate legal changes, optimize compliance, and unlock growth opportunities in Vietnam’s fast-moving market.