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| At the tire manufacturing workshop of Sailun Vietnam Co., Ltd., Phuoc Dong Industrial Park, Tay Ninh Province__Photo: VNA |
Among the 34 laws passed by the 15th National Assembly at its 9th session, four are of particular significance to the financial sector: the Law on the State Budget; the Law on Management and Investment of State Capital at Enterprises; the Law on Corporate Income Tax; and the Law on Excise Tax.
These laws are expected to enhance the legal foundation for more effective management and use of budgetary resources, thereby contributing to economic growth and improving citizens’ lives.
In addition to improving operational efficiency and unlocking resources, the new legislation also promotes greater transparency, autonomy, and accountability among economic actors, while enhancing national competitiveness. These factors are expected to support Vietnam in navigating emerging challenges and seizing opportunities presented by digital transformation, green growth, and the circular economy.
Advancing budget decentralization and delegation
According to Deputy Minister of Finance Le Tan Can, the Law on the State Budget—scheduled to take effect on January 1, 2026—was formulated in alignment with Party Central Committee and Politburo resolutions and conclusions on organizational restructuring, implementation of the two-tier local government model, and advancement of science, technology, innovation, and national digital transformation.
The law emphasizes decentralization and delegation of fiscal powers, alongside reforming the mechanisms for budget management and allocation, with the aim of ensuring the central budget maintains a leading role, while empowering local budgets with greater initiative.
In this context, the law fundamentally revises the division of revenue sources between central and local budgets, allowing authorities at all levels to proactively and flexibly estimate, adjust, and manage their financial resources, including surplus revenues.
It also enhances local administrations’ authority in determining fees and charges, as well as expenditure regimes, thereby dismantling the “ask–give” mechanism, removing procedural bottlenecks, and increasing transparency and accountability. Another notable provision involves prioritization in budget allocation, enabling greater responsiveness and flexibility in funding emerging priorities such as science, technology, innovation, and digital transformation—the country’s new growth drivers.
Removing constraints on state-owned enterprises
Expected to significantly invigorate the state-owned enterprise (SOE) sector, the Law on Management and Investment of State Capital at Enterprises expands its scope to include not only enterprises wholly owned by the State but also credit institutions in which the State holds more than 50 percent of charter capital, along with political and socio-political organizations.
The law clearly affirms that the State will exercise its rights and responsibilities in accordance with market principles, in a transparent and efficient manner, while maintaining a clear separation between state management and enterprise governance. Its core principle is to empower the State—as owner—to exercise rights over state capital as any other investor would, while granting greater operational autonomy to enterprises.
Accordingly, enterprises are authorized to formulate and implement their own five-year and ten-year development strategies and annual business plans. They are also empowered to approve their financial statements and make decisions regarding employee salaries and bonuses.
Meanwhile, the board of members and company chairperson have the authority to determine capital mobilization plans and are held accountable for their efficiency. Reporting to the owner’s representative agency is only required if the capital to be mobilized exceeds three times the enterprise’s equity.
With respect to project approval, the new law stipulates that enterprises must report to the owner’s representative agency for approval only when the value of a project or investment exceeds a specified threshold. Thus, boards of members and company chairpersons now enjoy greater autonomy in making investment decisions.
This legislative reform represents a significant step toward enhancing enterprise autonomy, reducing unnecessary administrative intervention, improving SOE competitiveness, and reinforcing the leading role of the state sector in the economy.
The law will take effect on August 1, 2025.
Tax reform aligned with international trends
Tax policy is a vital pillar of the financial system. The newly adopted tax laws—the Law on Corporate Income Tax and the Law on Excise Tax—contribute to modernizing Vietnam’s tax regime in line with international practices and integration commitments.
Notably, the amended Law on Corporate Income Tax introduces several provisions to expand the tax base for foreign enterprises operating in e-commerce and digital platform-based business in Vietnam. It also includes new taxable income categories and exemptions aligned with the country’s orientation toward priority sectors, including carbon credits, green bonds, scientific research, and innovation.
In terms of tax incentives, the law refines and consolidates criteria to better target incentives toward key sectors, while eliminating scattered and ineffective preferences. The regulation also encourages enterprises to increase contributions to the Science and Technology Development Fund, with expenditures prioritized for emission reduction and carbon neutrality efforts—supporting Vietnam’s green growth and sustainability goals.
In the area of excise taxation, the revised Law on Excise Tax underscores the dual objectives of regulating consumption and protecting public health.
It adjusts tax rates and introduces a phased roadmap for products such as alcohol, beer, and tobacco. The law also adds new taxable items, including sugar-sweetened beverages, and applies an absolute tax rate on tobacco products. By increasing taxes on these goods, the law aims not only to promote healthier consumption habits but also to steer production toward sustainability and generate additional fiscal revenue for reinvestment in public health and education.
The Law on Corporate Income Tax will take effect on October 1, 2025, applying from the 2025 tax period. The Law on Excise Tax will enter into force on January 1, 2026.- (VLLF)
