1. New Law on the Capital

The National Assembly adopted the Law No. 02/2026/QH16 on the Capital (the “New Law”) dated 23 April 2026. The New Law takes effect from 1 July 2026 (except certain provisions taking effect on 23 April 2026) and replaces the Law on the Capital 2024.

The New Law introduces mechanisms and policies for development and management of Hanoi City (referred to as the City). Some key provisions of the New Law are as follows:

Delegation of powers

The New Law sets out a number of principles relating to delegation of powers to the City Administration. The City People’s Council and City People’s Committee are given broad powers to make decisions on issues falling within the authority of the City Administration in all sectors (such as budget revenue and expenditure, investment, planning, construction, urban development, management of natural resources etc.).

The City People’s Council, City People’s Committee and the Chairman of the City People’s Committee can delegate tasks to local agencies, organisations and officials, unless the delegation is not allowed in accordance with laws.

Pilot mechanisms and policies

Except the fields of national defense, security, foreign affairs, religion and other fields directly related to national sovereignty, the City People’s Council may promulgate pilot mechanisms and policies that contain provisions different from those of laws or have not yet been stipulated by laws to be applied in the City. The City People’s Committee is responsible for enforcing these mechanisms and policies.

The pilot mechanisms and policies will be promulgated on the basis of the approval of the competent authority. When drafting a pilot mechanism or policy, the City People’s Committee is obligated to (i) consult with the ministerial-level agencies and relevant organisations, and (ii) collect opinions of organisations and individuals directly affected by the proposed mechanism or policy. The pilot mechanism or policy will be applied for five years and can be extended for a period not exceeding five years.

Supervision and accountability

The National Assembly, the Government, the Prime Minister and ministries are responsible for the supervision of the implementation of the New Law as well as pilot mechanisms and policies of the City. The New Law provides the National Assembly’s  Standing Committee with power to revoke the whole or part of documents promulgated by the City People’s Council. Similarly, the New Law states that the Prime Minister has the power to suspend the effect of documents promulgated by the City People’s Council, and suspend the effect or revoke the whole or part of documents promulgated by the City People’s Committee and the Chairman of the City People’s Committee.

Besides, the New Law strengthens the accountability of the City Administration by providing that, if requested by the competent authority, the City Administration must give explanations about objectives, scope of influence, socio-economic consequence of pilot mechanisms and policies; results, resource-use efficiency and impact on the City development and national interests; and measures to prevent, detect and resolve obstacles, inadequacies and deviation aroused during the implementation of the pilot mechanisms and policies, and powers of the City Administration. Such explanations must be publicly disclosed.

Selection of investors and contractors for large and important projects

The form of selection of investor/contractor in special case is available for selection of investors to implement large and important projects (as defined under the New Law), or selection of contractors to implement bidding packages of such projects. The criteria, requirements and procedures for selection of investor/contractor will be issued by the City People’s Council.

Recovery of land

The New Law extends the cases of land recovery in the City to cover (a) projects eligible for land recovery stipulated in the law on land, (b) socio-economic development projects provided in Article 3.4(a) of the New Law, and (c) land in the areas adjacent to roads and to urban railway stations and depots (which are carried out concurrently with the recovery of land for investment in the construction of new road and urban railway corridors, or for the expansion of existing road corridors).

Land recovery to implement projects referred to in items (b) and (c) above shall be determined by the City People’s Council on a case by case basis.

Other issues

The City People’s Committee will establish free economic zone and free trade zones in the City after obtaining the City People’s Council’s approval.

The New Law provides incentives for enterprises, organisations and individuals to invest in digital technologies and high-technologies; high-tech park infrastructure facilities; establishing multi-level education institutions; and other projects as listed in Article 26 of this Law. It also provides incentives and supports for strategic investors.

2. Removal and amendment of conditional investment sectors

On 15 May 2026, the Government issued Resolution No. 66.17/2026/NQ-CP (“Resolution 66.17”) on removal and amendment of conditional investment sectors.

Resolution 66.17 provides for removal and amendment of conditional investment sectors contained in Appendix IV of the Investment Law 2025.

Conditional investment sectors removed or amended

Under Appendix IV of the Investment Law 2025, there are 198 conditional investment sectors, while under Resolution 66.17 this number is reduced to 142. The Ministry of Finance has the responsibility to review and propose to adjust Appendix IV of the Investment Law in order to assure the integrity of the legal system.

Some notable sectors which are removed from the List of conditional investment sectors include, among others: accounting service, gas business, mineral business, marine transport business, sea port operation business, clean water business, publication distribution services, training linkage with foreign countries, educational quality verification, and intellectual property assessment services.

Resolution 66.17 consolidates certain sectors into one sector (for instance, “business of prize-winning games” now contains electronic games with a prize offer for foreigners, casino and betting). At the same time, it amends some sectors (e.g. “operation of general education establishments” is replaced by “operation of general education”, or “fertiliser business ” is replaced by “fertiliser production”).

For removed sectors, the relevant ministries are required to issue standards or technical regulations applicable to such sectors (if necessary) and these standards and technical regulations shall be issued to be effective at the same time as the effective date of Resolution 66.17.

Implementation of Resolution 66.17

This Resolution will be effective from 1 July 2026 until 28 February 2027. In case where laws and resolutions of the National Assembly, ordinances and resolutions of the National Assembly’s  Standing Committee or resolutions of the Government, which are newly issued and take effect during that period, provide for conditional investment sectors mentioned in Resolution 66.17, the corresponding provisions of this Resolution will cease to be effective.

3. Value Added Tax

On 5 May 2026, the Government issued Decree No. 144/2026/ND-CP (“Decree 144”) amending Decree 181/2025/ND-CP dated 1 July 2025 on Value Added Tax, as amended (“Decree 181”).  Decree 144 takes effect from 20 June 2026.

Decree 144 makes the following amendments to Article 4 (non-taxable objects) of Decree 181:

• adds provisions on insurance services not subject to value added tax (VAT) which repeats Article 5.8 of the Law on VAT.
• amends Article 4.4(dd) to provide that sale of debts including payables and receivables, and sale of deposit certificates are not subject to VAT; and
• amends provisions regarding export products being exploited natural resources and minerals according to the lists issued by the Government. Decree 144 updates the List of export products being exploited natural resources which have not been processed (Annex I), and the List of export products being exploited natural resources which have been processed into other products (Annex II) by removing (i) natural fluorite containing by weight more than 97% of calcium fluoride (subheading 2529.22.00) from Annex I and (ii) cemented bismuth containing Bi>70 (subheading 8106.90) from Annex II.

For the purposes of determining turnover to calculate the percentage of the credited input VAT, Decree 144 amends Article 23.2(a) to clarify that turnover from banking activities, securities trading activities and insurance business activities shall be determined in accordance with the law on credit institutions, the law on securities and the law on insurance business, respectively.

4. Streamlining procedures related to foreign exchange management

On 19 May 2026, the State Bank of Vietnam (SBV) issued Circular No. 17/2026/TT-NHNN (“Circular 17”) amending several Circulars in the field of foreign exchange management to decentralize and simplify administrative procedures. Circular 17 takes effect from 25 July 2026.

Circular 17 simplifies administrative procedures stipulated in Circular 22/2013/TT-NHNN on registration of foreign loans and international bonds guaranteed by the Government, as amended; Circular 37/2013/TT-NHNN regarding forex control applicable to overseas loan provision and collection of guaranteed debts for non-residents, as amended; Circular 10/2016/TT-NHNN on overseas indirect investments, as amended; Circular 39/2025/TT-NHNN on opening and using offshore foreign currency accounts by residents being organisations; and Circular 26/2021/TT-NHNN guiding the foreign exchange transactions between SBV and credit institutions permitted to conduct foreign exchange activities.

Regarding simplification of the procedures for registration of foreign loans or international bonds guaranteed by the Government, Circular 17 does not change documents required for registration but it provides new application form for registration of foreign loans/international bond issuance. The timeline to issue the foreign loan/international bond registration certificate is shortened from 07 working days to 05 working days after receipt of a complete registration file. Circular 17 decentralizes the power to issue such certificate to the Director of the SBV’s branch in the region where the borrower or the international bond issuer has its headquarters.

Regarding procedures for establishment of foreign currency transactions between the SBV and credit institutions permitted to conduct foreign exchange activities, Circular 17 amends provisions on processing dossier for establishment of foreign currency transactions. Specifically, if the dossier need to be revised, the SBV shall notify the credit institution within 04 working days of receiving a dossier. The credit institution has 15 working days (rather than 10 working days as provided under Circular 26/2021/TT-NHNN) to revise the dossier and submit the revised version to the SBV.  Within 04 working days (instead of 07 working days as provided under Circular 26/2021/TT-NHNN) after receipt of a complete dossier, the SBV shall approve or refuse said dossier.

5. Supervision of domestic carbon trading

On 12 May 2026, the Ministry of Finance issued Circular No. 48/2026/TT-BTC (“Circular 48”) regarding supervision of trading of greenhouse gas emission allowance and carbon credits on the domestic carbon exchange; and the reporting regime on operations of the domestic carbon exchange. Circular 48 became effective on 12 May 2026. Below are some notable issues of Circular 48.

Vietnam Exchange (VNX) and Hanoi Stock Exchange (HNX) are responsible for, among other things, supervision of trading of greenhouse gas emission quotas and carbon credits on the domestic carbon exchange to discover violations of domestic carbon trading regulations (e.g. supplying false information to rig the prices of greenhouse gas emission quotas and carbon credits). The VNX and HNX have the power to request carbon trading members and participants to report, explain and supply necessary information and documents relating to greenhouse gas emission quotas and carbon credits.

Circular 48 requires that carbon trading members have to apply a system of criteria for reporting supervision of greenhouse gas emission quota and carbon credit trading issued by the VNX. They will need to supervise the trading of greenhouse gas emission quotas and carbon credits conducted by participants and report to the VNX and HNX.

Circular 48 also sets out the responsibilities of the State Securities Commission and the Vietnam Securities Depository and Clearing Corporation (VSDC) relating to supervision of trading of greenhouse gas emission quotas and carbon credits. For example, it states that VSDC must supervise depository members’ compliance with the provisions of Decree 29/2026/ND-CP concerning depository and payment of transactions.