The Week in Review: Weekly Insights for Business Owners in Vietnam July 2025

Vietnam's Weekly Update:  Positive updates for business owners in Vietnam

Operating a business in Vietnam is increasingly dynamic thanks to sweeping economic reforms, a tech-savvy population, and a robust focus on fostering digital innovation. To thrive in today’s market, business owners in Vietnam and foreign investors must stay on top of changing policies, evolving regulations, and Vietnam’s ambitious digital growth strategy. 

Here’s a breakdown of the week’s critical news and actionable insights for those looking to invest in Vietnam and harness new opportunities for sustainable, long-term growth in the Vietnam economy.

Boosting Renewable Energy Projects

On July 24, 2025, Standing Deputy Prime Minister Nguyễn Hòa Bình signed Directive 118/CĐ-TTg, calling on ministries and local authorities to quickly address challenges facing renewable energy projects. They’re speeding up land and pricing approvals for solar and wind energy projects, which means more reliable, affordable energy for businesses soon.

This is great news for business owners in Vietnam, especially those in energy, construction, or related industries looking to tap into expanding opportunities.

Proposal for Retaining Old Packaging Addresses

To support businesses, especially in Ho Chi Minh City, there's a proposal to permit the continued use of packaging with old addresses until December 31, 2025 to avoid waste and production delays caused by recent administrative changes. 

This small but thoughtful move saves businesses money to help them adapt to administrative changes without disrupting import/export, tax declarations, or commercial contracts

Proposed Personal Income Tax (PIT) Reductions

The Ministry of Finance is gathering feedback on a revised PIT Law, which includes proposals for numerous income exemptions and reductions. Key proposed exemptions that could impact the workforce include:

• Income from certain family real estate transfers, the sale of one's sole residence, and land use rights granted by the State.
• Income from direct agricultural production or agricultural land conversion.
• Interest from government bonds, treasury bills, bank deposits, and life insurance contracts.
• Overseas remittances and higher pay for night work/overtime.
• Scholarships, various insurance compensations, and income from charitable activities or foreign aid.
• Wages for Vietnamese seafarers on international routes and income from offshore fishing activities.
• Crucially for modern businesses: Income from the first transfer of emission reduction certificates and carbon credits; interest and first transfer of green bonds.
• Income of individual investors, experts, and founders involved in creative startups, and income from the transfer of shares/capital contributions in creative startups.
• Wages from state-funded science and technology tasks and from commercialized science/tech copyrights.
• Significant reductions proposed for high-tech talent: A 2-year PIT exemption and 50% reduction for the subsequent 4 years for wages of experts and scientists working in creative startups, R&D centers, and innovation organizations. 
• A 50% reduction for high-tech personnel in high-tech, IT, science & technology, innovation, and digital transformation sectors.

VNeID Simplifies Digital Services in Vietnam

Ho Chi Minh City is pushing for VNeID to become the sole account for accessing administrative procedures. New features on the VNeID application significantly expand its utility for citizens, including:

• Residency registration, ID card applications, and criminal record requests.
• Integration with financial and banking services, payment for electricity, water, and flight tickets.
• An electronic health book, an e-wallet, and functions for vehicle ownership transfer.
• The ability to log into the National Public Service Portal and perform digital signing.

There's a strong emphasis on encouraging officials and citizens to activate and use their Level 2 digital identity accounts for public services.

Smart City Plans Move Forward

Vietnam is prioritizing smart city development as a key method to boost the digital and urban economies and improve quality of life. Acknowledging past inconsistencies, the government is seeking to unify efforts. 

The Ministry of Construction is tasked with submitting a Decree on Smart City Development to the Government by August 15, 2025. This decree will:

• Establish clear standards and criteria.
• Integrate digital transformation.
• Explore mechanisms like pilot programs, service leasing, and public-private partnerships.

The Ministry of Construction will also finalize a summary of the "Vietnam Sustainable Smart City Development Project 2018-2025" in July 2025, while ministries and localities are to submit their action plans for smart city development within the same month.

New Rules for Food and Health Ads

The Ministry of Health has drafted revisions to the Law on Food Safety, introducing new prohibited acts in food advertising. A significant proposal is to ban the use of images, equipment, uniforms, names, or titles of medical units, health facilities, medical staff, patient testimonials, or statements by doctors, pharmacists, and medical staff 

The draft also requires influencers advertising health protection foods or supplements to disclose sponsorship relationships. Violations could lead to substantial fines, up to 200 million VND for individuals and 400 million VND for organizations, or even up to 7 times the value of the infringing food.

What This Means for Business Owners in Vietnam

• Cleaner, more reliable energy is coming, meaning potential savings and growth.
• Packaging relief helps avoid unnecessary costs during admin changes.
• Tax breaks attract talent and fuel innovation in high-tech and green sectors.
• Digital tools like VNeID will make administrative tasks easier and faster.
• Smart city development offers fresh business opportunities.
• Stronger international partnerships open up new markets.
• Advertising rules require careful compliance to avoid risks.

Final Thoughts

The momentum behind Vietnam Digital Growth and economic reforms makes this a fantastic time to invest in Vietnam and grow your business. Keep an eye on the digital transformation and be ready to adapt your operations and marketing strategies. 

To stay competitive, business owners Vietnam must align with these national priorities and seize new opportunities.

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