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| National Assembly deputies press the button to pass laws and resolutions at the recent 9th session__Photo: Doan Tan/VNA |
1. Law Amending a Number of Articles of the Law on Vietnamese Citizenship
Coming into force on July 1, 2025, this Law permits dual nationals to work as civil servants in state agencies, provided their employment serves national interests and they are permanent residents in Vietnam.
It also facilitates the naturalization in Vietnam or restoration of Vietnamese citizenship by allowing applicants to retain their foreign nationality. Applications may be submitted to provincial-level Departments of Justice (for those residing in Vietnam) or to Vietnamese diplomatic missions abroad (for those living overseas).
New regulations require applicants to adopt a Vietnamese name or one in the language of a Vietnamese ethnic group. Those retaining foreign nationality may choose a compound name combining Vietnamese and foreign elements, which will be clearly stated in the naturalization decision.
2. Law Amending a Number of Articles of the Penal Code
Also effective as of July 1, 2025, this Law abolishes the death penalty for eight offenses prescribed in the 2015 Penal Code: carrying out activities aimed at overthrowing the people’s administration (Article 109); espionage (Article 110); sabotaging physical-technical foundations of the Socialist Republic of Vietnam (Article 114); producing or trading in counterfeit goods being curative medicines or preventive medicines (Article 194); illegally transporting narcotics (Article 250); embezzling property (Article 353); taking bribes (Article 354); and crimes against peace and waging wars of aggression (Article 421).
A new offense - “illegal use of narcotics” (Article 256a) - is introduced, with clear stipulations on criminal circumstances. Meanwhile, the Law increases imprisonment terms and fines for certain crimes related to environmental violations, food safety, corruption and drug offenses.
Under the Law, persons with end-stage cancer are exempt from execution of death sentence. Additionally, those who are sentenced to death for any of the eight offenses mentioned above prior to July 1, 2015, but whose sentences have not yet been executed, may have their sentences commuted to life imprisonment under decision of the Chief Justice of the Supreme People’s Court.
3. Law on Science, Technology and Innovation
Scheduled to enter into force on October 1, 2025, the Law on Science, Technology and Innovation institutionalizes the Politburo’s Resolutions 57-NQ/TW and 68-NQ/TW while taking over the core contents of the National Assembly’s Resolution 193/2025/QH15 on piloting special mechanisms and policies to drive breakthroughs in science, technology, innovation and national digital transformation.
For the first time, innovation is placed on equal footing with science and technology, reflecting a shift in development thinking. A key highlight is the prioritization of state budget allocation, with 40-50 percent of R&D funds earmarked for strategic technology mastery, moving away from dispersed spending practices previously applied.
Under the Law, enterprises are regarded as the core of the innovation ecosystem, while the State plays a facilitative role, establishing institutional frameworks, investing in infrastructure, and promoting the commercialization of research outcomes. The Law provides mechanisms for leasing, selling, transferring, and contributing research outcomes as capital.
Moreover, in order to encourage the commercialization of research outcomes, the Law states that intermediary organizations are entitled to a share of profits while authors and host institutions can receive at least 30 percent of pre-tax profits from the commercialization.
Regarding financial mechanisms, asset management, and the handling of research outcomes in science, technology and innovation activities, the Law adopts a results-based management approach, shifted from “spending control”. Accordingly, funding will be disbursed based on final results, allowing greater flexibility and autonomy. Host institutions will be granted ownership of research assets and outcomes upon their creation, without being obliged to return funds to the state budget or to have the funds reflected as an increase in state capital. Commercialization of research outcomes will be made flexible, with profits reinvested or used to incentivize creativity, while resource allocation will be based on output effectiveness.
4. Law on Corporate Income Tax
Taking effect on October 1, 2025, and applying from the 2025 tax period, the new Law on Corporate Income Tax extends the tax net to foreign enterprises operating via e-commerce or digital platforms in Vietnam, even without a permanent establishment.
Under the Law, the standard corporate income tax (CIT) rate is 20 percent. For enterprises with annual revenue of up to VND 3 billion, the rate is reduced to 15 percent. For those with annual revenue of between over VND 3 billion and VND 50 billion, the rate is 17 percent. Revenue used for tax calculation is the total revenue from the preceding tax period.
The Law introduces new criteria for entitlement to tax incentives to target key sectors more effectively while removing spread-out and inefficient incentives. It also encourages businesses to increase allocations to their science and technology development funds, and prioritize expenditures related to emissions reduction and carbon neutrality, aligning with commitments to green and sustainable development.
For existing investment projects eligible for tax incentives under legal provisions in effect at the time of licensing, investment certificate issuance, or investment approval, these incentives will be further applied. However, if subsequent amendments to the CIT Law introduce new incentives for which these projects qualify, project owners may opt to apply either the previous or new incentives for the remaining incentive period.
In case an investment project was previously ineligible for CIT incentives but qualifies under the Law, it will be eligible for the incentives as provided in the Law for its remaining duration, counting from the 2025 tax period.
5. Law on Excise Tax
Effective on January 1, 2026, the new Law on Excise Tax aims to regulate consumption, safeguard public health, and align with international practices and Vietnam’s integration commitments.
The Law increases tax rates and introduces a phased roadmap for products such as alcohol, beer and tobacco, while lengthening the list of taxable items to include high-sugar beverages.
A key point is the introduction of absolute excise tax rates for tobacco products over a five-year period from 2027 to 2031.
For cigarettes, the existing rate of 75 percent remains in effect, while an absolute tax will be added, starting at VND 2,000 per pack in 2027 and increasing annually to reach VND 10,000 by 2031.
For cigars, the 75-percent rate is also retained, and an absolute tax will be imposed, starting at VND 20,000 per cigar in 2027 and rising to VND 100,000 by 2031.
For shredded tobacco, pipe tobacco, and tobaccos in other forms, alongside the existing 75-percent rate, an absolute tax will be added at VND 20,000 per 100 grams or 100 milliliters in 2027, jumping to VND 100,000 by 2031.
The Law also introduces new tax-free objects, including goods manufactured or processed for export; exported goods previously subject to excise tax that are re-imported after being returned by foreign partners; helicopters and gliders used for emergency medical services, rescue operations or pilot training; passenger cars and four-wheeled passenger motor vehicles not registered for public road use and operating solely within historical sites, hospitals or schools; and other specialized vehicles as defined by the Government.
6. Law on Digital Technology Industry
Set to come into effect on January 1, 2026, the Law on Digital Technology Industry applies to all domestic and foreign entities engaged or involved in the digital technology industry.
Not just a specialized legislation, the Law is expected to serve as an institutional lever for national digital transformation. It introduces, for the first time, legal definitions and a comprehensive regulatory framework for key sectors such as digital technology industry, semiconductors, artificial intelligence (AI), and digital assets, including special incentives for flagship projects in these fields. Notably, the Law sets out a strategy for the development of specialized chips and integration into global supply chains.
Also for the first time, the “Make in Vietnam” initiative is codified into law, promoting domestic design and production and technology transfer. Regarding AI, the Law adopts a “human-centered” principle, requiring identifiable labeling for AI digital products. Essential digital infrastructure - such as AI data centers, centralized digital technology zones and national laboratories - will be prioritized for investment, laying the foundation for Vietnam’s robust digital transformation and digital economy.
The Law also provides exceptional incentive policies and breakthrough solutions. Large-scale investment projects will be entitled to multi-year CIT reductions financial support from the Development Investment Fund; meanwhile, R&D expenses counted at double or even triple for small- and medium-sized enterprises.
Administrative procedures will be streamlined through the delegation of authority to provincial-level People’s Committees to establish industrial parks specialized in digital technology and by implementing a “green lane” priority mechanism in customs clearance.
7. Law on Personal Data Protection
The Law on Personal Data Protection, effective as of January 1, 2026, marks a breakthrough with its clear and comprehensive provisions tailored to meet practical requirements of the digital era.
The Law provides a clear legal definition of personal data, classifying them into basic personal data and sensitive personal data. This approach ensures flexibility, allowing the classification system to evolve with technological advances and practical realities.
The Law outlines six core principles for personal data protection, striking a balance between privacy, cyber security and innovation. It clearly defines the rights and obligations of data subjects, enabling individuals to control their information and reinforcing their responsibility for self-protection. Data subjects have the right to be informed; to consent or withdraw consent; to access and correct data; to request deletion, restrict processing, object to processing, file complaints, initiate lawsuits, and claim compensation for damage. At the same time, they are obliged to protect their own data, respect others’ data, provide accurate information, and comply with law. These provisions help prevent abuse of rights while fostering responsible behavior in the digital environment.
The Law enumerates seven prohibited acts, accompanied by stringent penalties. Unlawful cross-border data transfers might incur fines of up to VND 3 billion or 5 percent of the previous year’s revenue of the violator. Those engaged in illegal data trading would be subject to fines of up to 10 times the illicit proceeds. Legal persons in serious breach may have their data processing operations suspended, while individuals committing severe violations may be subject to penal liability under the 2015 Penal Code.
The Law has specific provisions to protect data of vulnerable groups, such as children, persons who have civil act capacity lost or limited, and those in sensitive sectors like finance, healthcare, advertising, social media, AI, blockchain, biometric data, and geolocation data.
8. Law on Atomic Energy
Replacing the 2008 Law, this updated legislation will take effect on January 1, 2026, and covers all domestic and foreign entities, including also international organizations, that are engaged in atomic energy activities in Vietnam.
The Law covers the development and application of atomic energy; radiation safety, radiation protection, nuclear safety and nuclear security; nuclear power plants and research reactors; responses to radiation and nuclear incidents; compensation for radiation and nuclear damage; nuclear inspection; and state management of atomic energy.
Notably, the Law’s provisions on the national authority for radiation and nuclear safety meet the requirements of the International Atomic Energy Agency (IAEA), treaties to which Vietnam is a contracting party, international practices, and Vietnam’s context.
Regarding nuclear power plants, the Law provides for investment, construction, operation and decommissioning, and outlines requirements for safety monitoring and security assurance throughout a plant’s lifecycle, ensuring consistency within Vietnam’s legal system and in line with international practices and IAEA guidelines.
The Law also provides transition of special mechanisms and policies issued prior to its effective date concerning investment in and construction of nuclear power projects or research reactor projects. It authorizes the Government to issue guiding texts to promptly address obstacles and difficulties, and to implement measures to accelerate the progress of ongoing nuclear power projects.
9. Railway Law
Effective on January 1, 2026, the Railway Law governs railway operations and defines the rights, obligations and responsibilities of organizations and individuals involved in the railway sector. It applies to both domestic and foreign organizations and individuals engaged in railway activities in the territory of Vietnam.
To institutionalize the Party’s key policy on private sector development as outlined in the Politburo’s Resolution 68-NQ/TW, the Law includes provisions on railway project investment using non-state capital. To encourage participation in railway projects via PPP or direct investment, the Law states that compensation, resettlement support and related costs will be covered by the State, and these expenses will not be counted as state capital ratio in PPP projects.
10. Law on Participation in United Nations Peacekeeping Operations
Also coming into effect on January 1, 2026, the Law on Participation in United Nations Peacekeeping Operations provides a comprehensive legal framework governing Vietnam’s participation in United Nations (UN) peacekeeping operations. It outlines the principles, scope, forms, fields, force development and deployment, resource allocation, regimes and policies, international cooperation, and the responsibilities of related agencies and organizations.
The Law establishes a complete legal corridor - from foundational principles and organizational structures to policies and accountability - aimed at standardizing and elevating Vietnam’s role in UN peacekeeping operations.
Resolution 130/2020/QH14 on participation in UN peacekeeping forces will cease to be effective upon this Law takes effect.-
