Vietnam’s National Assembly Standing Committee has ushered in a wave of significant regulatory changes, aiming to reshape the country’s tax and investment landscape while also tightening rules around social and unemployment insurance compliance. On October 17, 2025, lawmakers passed a series of resolutions and reviewed draft legislation that could have deep and lasting impacts on both individuals and businesses across the nation.
According to VOV.VN, one of the most closely watched moves was the adoption of new personal income tax (PIT) deduction levels. From the 2026 tax year onward, the deduction for individual taxpayers will rise to 15.5 million VND per month, with an additional 6.2 million VND per month for each dependent. The resolution, effective from the date of signing, is expected to provide meaningful relief for millions of Vietnamese workers. For example, anyone earning 15 million VND monthly will be exempt from paying PIT after deducting mandatory social insurance, health insurance, and unemployment insurance contributions. Even a taxpayer with two dependents and a monthly income of 31 million VND will not owe any PIT under the new regime.
The changes are designed to reflect rising living costs and the evolving economic realities faced by Vietnamese households. As Deputy Minister of Finance Nguyen Duc Chi explained during his presentation to the Standing Committee, these adjustments are part of a broader effort to ensure that tax policy remains fair and responsive to the needs of ordinary citizens. The move has been widely welcomed, with many seeing it as a long-overdue step to ease the financial pressure on working families.
But tax relief wasn’t the only headline from the National Assembly’s busy October session. Lawmakers also approved new environmental protection tax rates for fuels, a decision that will come into effect from January 1, 2026, and last through the end of that year. As reported by VOV.VN, the new rates are as follows: gasoline (excluding ethanol) will be taxed at 2,000 VND per liter, aviation fuel at 1,500 VND per liter, diesel, mazut, and lubricants at 1,000 VND per liter, kerosene at 600 VND per liter, and lubricants at 1,000 VND per kilogram. This move is intended to balance the government’s environmental objectives with the need to keep fuel costs manageable for consumers and businesses alike.
In parallel, the Standing Committee gave its input on a draft amendment to the Investment Law, a measure that could streamline business operations and encourage further private sector growth. The draft focuses on clarifying and narrowing the list of sectors that require conditional business investment approval, thus reducing bureaucratic hurdles for most new ventures. It also proposes to further decentralize and delegate investment approval authority, with only especially sensitive projects—such as those involving port or airport infrastructure, telecommunications, media, publishing, or projects with major environmental, defense, or security implications—remaining under central government oversight.
This approach, as outlined by the Minister of Finance Nguyen Duc Chi, is meant to simplify and modernize Vietnam’s investment environment. "Promoting decentralization and delegation in investment approval means only specifying the authority of the Prime Minister and provincial chairpersons, with projects previously under the National Assembly’s purview now assigned to the Prime Minister, except in special cases," said Deputy Minister Nguyen Thi Bich Ngoc. She added that unnecessary procedures will be eliminated, and 21 conditional business sectors deemed obsolete will be scrapped from the law.
Most members of the Standing Committee expressed support for the draft law’s goals and direction. However, some called for further review to ensure the proposed changes fully embody the Party’s policies on private sector development, innovation, and digital transformation. They emphasized the need for consistency and alignment with other relevant laws. As the process moves forward, the government is expected to continue scrutinizing the draft to ensure its quality before it’s presented for approval at the National Assembly’s 10th session.
Also on the agenda was the allocation of the 2025 central government public investment budget, including projects funded by surplus revenue from 2022 and 2023. The Committee reviewed proposals to consolidate investment plans for provinces that have recently undergone administrative mergers, aiming to ensure efficient and equitable distribution of resources across the country.
Meanwhile, in a parallel development, a newly issued government decree is set to tighten compliance around compulsory social insurance and unemployment insurance contributions. As detailed in the decree (summarized by VOV.VN and other official sources), it elaborates on regulations concerning late payment and evasion of these mandatory contributions. The decree clarifies what constitutes non-compliance and specifies circumstances under which late or missed payments are not considered evasion. These include force majeure events such as natural disasters—storms, floods, earthquakes, large fires, prolonged droughts—and dangerous epidemics officially declared by state agencies, as well as sudden emergencies and other events recognized by civil law.
The decree also lays out in detail how to calculate both the monetary amount and the number of days a payment is considered late. For instance, the period of lateness begins the day after the deadline for registration or payment of compulsory social insurance or unemployment insurance contributions. The responsibility for calculating and remitting overdue amounts falls squarely on employers, who must ensure compliance with the law or face sanctions.
Crucially, the decree assigns the social insurance agency direct responsibility for monitoring compliance, identifying cases of late payment or evasion, and applying or recommending appropriate penalties. This move is expected to close loopholes and strengthen enforcement, ensuring that workers receive the social protections they are entitled to by law. The decree, which comprises four chapters and sixteen articles, will come into force on November 30, 2025.
Taken together, these measures represent a concerted effort by Vietnam’s legislature and executive to modernize the country’s legal and regulatory framework, making it more attuned to the realities of a dynamic, rapidly growing economy. Whether it’s by easing the tax burden on families, promoting environmentally responsible fuel use, streamlining investment procedures, or safeguarding workers’ rights, the government is signaling its intent to foster a more equitable and resilient society.
As these new rules and reforms take root, both individuals and businesses will need to adapt to a changing landscape—one that promises both new opportunities and greater accountability. The coming months will reveal just how effectively these ambitious changes are implemented and whether they deliver on their promise of a fairer, more prosperous Vietnam.
