Ten New Laws Enter Into Force
Ten new laws entered into force last month, some of which contain notable changes which will be of interest to foreign enterprises and international investors. In this article, we highlight some of the most important provisions in these new laws.
First, the new Capital Law (which we wrote about here) entered into force on 1 January 2025. Compared to the previous law (2012), the new law places greater emphasis on attracting and utilizing talented individuals in the capital’s workforce. It also phases out ward-level People’s Councils and contains provisions to allow workers at municipal public agencies to contribute capital and/or participate in the management and operation of enterprises commercialising scientific development and new technologies.
Second, the Law on Tax Administration has been revised with the aim of making tax collection more transparent and efficient. Some of the most notable changes include to tax refunds, calculation and tax declaration for e-commerce enterprises and activities on digital platforms, and the use of IT and modern techniques in tax administration.
Third, the new Law on Public Investment aims to speed up the disbursement of foreign investment and official development assistance (ODA) while also improving the capacities of state-owned enterprises and local authorities to implement public investment projects.
Fourth, the revised Law on the Organisation of People’s Courts includes a new chapter on the organisation of trials in court, including stipulations for the random selection of judges and members of juries. The revised law also stipulates ranks for judges in People’s Courts and Supreme People’s Courts, including their salaries and those of clerks and court examiners.
Meanwhile, six new draft laws have been put on the legislative agenda for 2025, following a meeting of the National Assembly Standing Committee in Hanoi on 15 January. These include Laws on the Organisation of the Government, on the Organisation of Local Administrations, and on the Organisation of the National Assembly. These laws will be discussed and approved later this month.
Administrative shake-up confirmed
The Party Central Committee also confirmed plans for a major shake-up of ministries and committees last month (we wrote about the proposals here). Plans have now been approved to restructure and streamline government administration, with ten ministries to be merged into five.
The Ministry of Finance (MOF) will absorb the Ministry of Planning and Investment (MPI) while the Ministry of Construction (MOC) will assimilate the Ministry of Transport (MOT). Meanwhile, the Ministry of Agriculture and Rural Development (MARD) will merge with the Ministry of Natural Resources and the Environment (MONRE) to create a new Ministry of Agriculture and Environment.
Likewise, the Ministry of Information and Communications (MOIC) and the Ministry of Science and Technology (MOST) will merge to become the new Ministry of Science and Technology. Finally, the Ministry of Home Affairs (MOHA) will absorb the Ministry of Labour, Invalids, and Social Affairs (MOLISA).
For more information about these laws and administrative reorganisations, including their impact for foreign enterprises and international investors, just contact our team on: contact@apflpartners.com
Disclaimer: This article and its content are for information only and are not given as legal or professional advice. they do not necessarily reflect all relevant legal provisions with respect to the subject matter. Readers should seek legal or professional advice before taking or refraining to take any action.
