The BGA Vietnam Team, led by Managing Director Ha Nguyen, wrote an update to clients on the key takeaways from the legislature’s recently concluded biannual session.

Context

  • Vietnam’s National Assembly concluded its first biannual session of 2023 on June 24. National Assembly deputies passed eight laws and 17 resolutions and debated nine other laws.
  • Many industries will be impacted by the legislation the assembly passed this session,which includes the laws on electronic transactions; pricing; tendering; consumer protection; and entry, exit, transit and residence of foreigners in Vietnam.

Significance

  • The National Assembly approved a 2 percent value-added tax cut from the current 10 percent starting July 1 until the end of the year. The tax cut will not apply to certain business sectors and products, including real estate, banking, telecommunications, information technology, finance, securities, insurance, refined petroleum, chemical products and products and services subject to a special consumption tax.
  • The National Assembly ratified a resolution on piloting several mechanisms and policies for Ho Chi Minh City — Vietnam’s largest economic hub. The city will offer a five-year exemption of corporate income tax for innovative enterprises and startups, science and technology organizations and other relevant entities. Employees and expatriates working on such projects will be exempt from paying a personal income tax. The resolution allows high-tech parks, concentrated information technology parks and innovation centers to test and control new technology solutions in the city.

Implications

  • BGA recommends that companies review the National Assembly’s recently passed laws to prepare for compliance. Implementing regulations will be drafted and are expected to be issued before January 2024, allowing businesses to clarify unclear provisions.
  • The draft laws are expected to be revised further. Businesses and business associations should continue to provide input and feedback on the draft laws to the National Assembly’s drafting authorities and relevant committees.

We will continue to keep you updated on developments in Vietnam as they occur. If you have any comments or questions, please contact BGA Vietnam Managing Director Ha Nguyen at vietha@bowergroupasia.com.

Best regards, BGA Vietnam Team

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Managing Director

Ha is a highly respected Vietnamese lawyer, with special expertise in financial transactions, mergers and acquisitions, as well as general business, trade and investment-related issues. Before joining BGA as managing director for Vietnam, Ha managed the Vietnam operations of BrooksBowerAsia for three years. She built and led the Vietnam team and serviced clients in various sectors ranging from energy and ICT to healthcare, logistics and consumer production. Ha practiced law in Vietnam in the 1990s, providing legal advice and consulting services to Fortune 500 clients. She also participated in drafting a number of laws and regulations, including the Foreign Investment ... Read More