Vietnam Business News: Week in Review (19 Sep 2025)

Vietnam has quickly become one of Asia’s most dynamic economies, offering foreign investors and entrepreneurs an attractive environment for growth. With its ongoing regulatory reforms, digital transformation, and focus on compliance, doing business in Vietnam is no longer just about market entry - it’s about understanding how innovation and law interact to create sustainable opportunities.

This week’s Vietnam business update highlights five key developments:

• Personal Income Tax Amendments
• Ho Chi Minh City’s Push to Remove Growth Bottlenecks
• Bankruptcy Law Revision: From Collapse to Recovery
• Stricter Protection of Sensitive Financial Data
• National Enterprise Database: A Step Toward Transparency
  

United Consulting provides regular business updates to highlight the most important shifts affecting entrepreneurs, SMEs, and foreign investors. Whether you’re already doing business in Vietnam or exploring new Business & Investment opportunities, staying ahead of these changes will help you navigate compliance and seize growth potential. Follow us on LinkedIn or Facebook to always stay up to date! 

1. Personal Income Tax Amendments

Vietnam is reviewing its Personal Income Tax (PIT) Law, with proposals aimed at improving fairness for employees and addressing new financial realities.

Key proposals include:

• Exemptions for worker incentives: 
• • Overtime pay, night shift pay, severance, and hardship allowances could become tax-free. 
  • Policymakers argue that taxing these reduces their motivational purpose, especially for lower-income workers.
• Debate on state-paid salaries: The Ministry of Public Security suggested exempting salaries funded by the state budget, but the Ministry of Finance opposed the idea to preserve tax equality across sectors.
• Digital assets in taxable income: For the first time, assets like cryptocurrency may be subject to taxation, aligning Vietnam with international tax practices.

Currently, only the portion of overtime and night shift pay above standard daytime wages is tax-exempt. These changes could expand relief significantly.

For foreign investors, these reforms demonstrate Vietnam’s effort to balance competitiveness with fairness, while ensuring taxation evolves alongside modern finance.

2. Ho Chi Minh City’s Push to Remove Growth Bottlenecks

As Vietnam’s commercial heart, Ho Chi Minh City (HCMC) is central to the country’s economic success. In the first nine months of 2025, HCMC achieved impressive growth of 7.8%, yet city leaders remain ambitious - targeting double-digit expansion.

To reach this goal, HCMC is tackling structural economic bottlenecks.

Priority actions include:

• Accelerating public investment disbursement & empowering SMEs: Policies are being tailored to improve financing access and support expansion.
• Building new growth drivers: Major initiatives like the Can Gio international transshipment port and citywide digital transformation projects are key priorities.
• Governance reforms: The new two-tier administrative model requires stronger training for local officials. Personnel selection now follows the principle of “choosing people for the job,” ensuring better performance.

For those doing business in Vietnam, particularly in HCMC, these reforms represent a stronger investment climate and reduced red tape over time.

3. Bankruptcy Law Revision: From Collapse to Recovery

Vietnam’s current Bankruptcy Law is often criticized for being lengthy and overly focused on liquidation. In 2025, lawmakers are seeking to shift this mindset by renaming it the Law on Recovery and Bankruptcy. Key proposals aim to encourage and prioritize the recovery of businesses at risk of insolvency rather than letting them fail

Key revisions include:

• Faster bankruptcy resolution: Streamlining administrative procedures to cut the resolution timeline from years to months.
• Business rehabilitation tools: Allowing companies to sell divisions or assets during recovery stages to preserve value.
• Supportive policies: Considering measures like tax deferrals to help enterprises in financial distress.

Why this matters:

• For struggling companies, the law offers a second chance at survival rather than immediate closure.
• For investors, it provides assurance that Vietnam is aligning with global practices where recovery is prioritized.
• For the economy, it prevents unnecessary loss of assets, jobs, and tax revenue.

This reform signals Vietnam’s recognition that encouraging recovery over collapse benefits all stakeholders and enhances the country’s investment appeal.

4. Stricter Protection of Sensitive Financial and Credit Data

In today’s digital economy, protecting customer information is as important as financial stability. Vietnam’s Ministry of Public Security has drafted a decree under the Law on Personal Data Protection that redefines sensitive financial data.

What counts as sensitive:

• Bank account details and balances
• Transaction histories
• Credit scores and reports
• Login credentials
• Securities and insurance-related data

Compliance requirements for businesses:

• Obtain explicit consent before processing financial data.
• Conduct annual compliance audits.
• Implement strict cybersecurity safeguards.
• Notify affected individuals within 72 hours of a breach.

For SMEs and startups, compliance may require upfront investment in IT and training- but will reduce long-term risks and build customer confidence.

5. National Enterprise Database: A Step Toward Transparency

Transparency is vital for reducing costs, improving compliance, and building trust. To that end, Vietnam approved a plan in September 2025 to build a National Enterprise Database. It will integrate six main sources: business registration, tax, customs, social insurance, credit, and labor data.

Implementation timeline:

• 2025: Integration of business registration, tax, customs, and social insurance data. Introduction of a “business health index”.
• 2026: Addition of credit and investment data with AI analytics.
• 2027–2030: Expansion into an open data platform accessible to both businesses and the public.

Why it matters:

• Investors will have easier access to reliable information on potential partners.
• Businesses will save time and costs on compliance and reporting.
• The government gains a powerful tool for better oversight and policy planning.

For foreign investors, this development is particularly positive. An open and transparent business environment reduces risks and enhances Vietnam’s credibility in the global market.

Conclusion: Compliance as a Business Advantage

Vietnam’s 2025 reforms reflect a clear strategy: create a fairer, more transparent, and investor-friendly business environment.

Key takeaways:

• Tax reforms aim to support workers while adapting to new asset classes like crypto.
• HCMC is tackling infrastructure and governance issues to unlock growth.
• Bankruptcy law changes will prioritize recovery, not just liquidation.
• Data protection rules demand stronger compliance but also increase trust.
• The enterprise database will enhance transparency and reduce risks for businesses.

For companies and investors, the message is clear: Vietnam compliance is no longer just about following rules - it’s about gaining a competitive edge.

✅ Looking to navigate these changes with confidence? Contact United Consulting today for tailored guidance on doing business in Vietnam and staying fully compliant.