Starting July 1, 2025, Vietnam is set to implement a series of significant administrative and regulatory changes that will reshape how individuals, businesses, and government bodies interact with tax, land use, and local governance systems. Among the most notable shifts is the official replacement of personal tax identification numbers with personal identification numbers, a move aimed at streamlining taxpayer identification processes across the country.
The Ministry of Finance and tax authorities have rolled out detailed guidance to help taxpayers transition smoothly to this new system. According to instructions from Tax Branch Area 1, individuals, households, and business households must update their tax codes by using their citizen identification card (CCCD) numbers through the Etax Mobile application. The process involves logging into the app, selecting the "Tax Registration - Change Information" menu, and entering the new CCCD number. The system then retrieves the citizen’s data from the National Population Database, allowing the taxpayer to verify and update their information as needed.
Taxpayers are then prompted to select the tax authority responsible for their declarations, especially if there are changes in their registered residential addresses. If the address remains the same, declarations are sent to the old tax authority; if changed, they are routed accordingly. After confirming the updates and completing form 08-MST, users can share their updated tax registration details as a PDF and attach any required documents before finalizing the submission with a one-time password (OTP). This digital-first approach is designed to reduce paperwork and improve accuracy.
However, tax authorities have also issued warnings about fraudulent schemes. Tax Branch Area I cautioned taxpayers against impersonators who falsely claim to be from tax offices, requesting sensitive documents like citizen ID cards or business registration licenses to update information. The official stance is clear: no such documents are required for address updates under the new two-tier local government model. Taxpayers are urged to remain vigilant and only trust communications through official channels such as their electronic tax accounts, emails, or the Etax Mobile app.
These administrative changes coincide with a broader reorganization of local government structures. From July 1, several localities across Vietnam will begin operating under a two-tier urban government model, alongside adjustments to administrative boundaries as mandated by recent resolutions of the National Assembly Standing Committee. This restructuring affects how addresses are recorded and managed in official records.
Businesses will notice these changes reflected in their tax records and invoices. Nguyen Tien Dung, Deputy Head of Tax Branch Area II, explained that tax authorities have already updated taxpayer address information in their databases to align with the new administrative divisions. Importantly, businesses are not required to amend their business registration certificates to reflect these boundary changes. The Ministry of Finance reinforced this policy in document No. 4370/BTC-DNTN, instructing business registration agencies not to demand address changes solely due to administrative adjustments.
In practice, this means that a business may have an invoice showing a new address consistent with updated administrative boundaries while still holding a business registration certificate with the old address. Taxpayers can use official tax authority announcements as proof to explain these discrepancies to partners or regulatory bodies. If a business wishes to update its registration information, it may do so voluntarily or alongside other changes, following standard procedures with the business registration agency.
Meanwhile, the local government reforms also empower commune-level People's Committee chairpersons with expanded authority. According to Decree 151/2025/ND-CP, effective July 1, these officials can now issue land use rights certificates (commonly known as "sổ đỏ") and certificates of ownership of assets attached to land in certain cases, a task previously reserved for district-level committees. This decentralization aims to make land administration more accessible and efficient at the grassroots level.
Complementing these reforms, Circular No. 40/2025 from the Ministry of Industry and Trade, also effective July 1, regulates the issuance of Certificates of Origin for export goods. It introduces provisions allowing exporters to self-certify the origin of their goods, streamlining export procedures and enhancing competitiveness in international markets.
These policy shifts come amid a recovering business environment. Less than a month ago, many small business households shuttered their operations due to uncertainty over unclear goods origin and new tax policies. However, as the new regulations take effect and awareness grows, many have reopened, adapting to the modernized regulatory landscape and looking toward more efficient business practices.
The amended Social Insurance Law of 2024, effective July 1, also broadens social insurance coverage. It mandates compulsory social insurance participation for various informal labor groups, including part-time workers, non-contract laborers who receive remuneration under supervision, and small business households with registered businesses such as street vendors and convenience stores. This expansion aims to better protect workers' rights in the informal sector, which has historically been underserved.
Beyond administrative reforms, Vietnam continues to tackle challenges in law enforcement and environmental initiatives. For instance, the Thanh Hoa Border Guard recently thwarted an illegal attempt to transport explosive materials via the sea border, arresting a suspect and preventing potential harm. Meanwhile, the General Department of Customs reported that in the first half of 2025, coordinated efforts led to prosecutions involving over 1.3 million packs of smuggled and counterfeit cigarettes, with an estimated value exceeding 65 billion VND.
In the realm of public safety, the Criminal Police Department, in partnership with Ba Ria – Vung Tau Provincial Police, dismantled a sophisticated gambling ring disguised as lottery ticket sales outlets. Led by Pham Quoc Anh, this network exploited popular lottery brands like Vietlott to mask illegal betting activities, underscoring ongoing efforts to curb organized crime.
On a more positive note, the corporate and technological sectors are showing vibrancy. On June 29, Hanoi hosted the MBIT HiGreen Pickleball Tournament 2025, bringing together over 120 athletes, including leaders and tech experts from more than 60 corporations both domestic and international. Organized by the Military Commercial Joint Stock Bank's IT division, the event aimed to raise funds to plant one million trees in the Truong Sa Archipelago, reflecting growing corporate social responsibility and environmental awareness.
Meanwhile, several provinces and cities are implementing the two-tier urban governance model, which, while altering administrative boundaries and local government structures, promises to foster more responsive and efficient public administration. Businesses and individuals alike are adapting to these changes, supported by clear communication from government agencies to minimize disruption.
As these reforms unfold, the Vietnamese government continues to emphasize transparency, digitalization, and inclusivity. Tax authorities' adoption of mobile applications and electronic systems for tax registration and information updates exemplifies this trend, aiming to reduce bureaucracy and improve taxpayer experience. At the same time, expanded social insurance coverage and decentralized land administration signal a commitment to social equity and local empowerment.
In the coming months, the success of these initiatives will depend on effective implementation and public cooperation. While challenges such as fraudulent schemes and illicit activities persist, coordinated efforts among government agencies, law enforcement, and the private sector provide a robust framework for progress.
Vietnam’s administrative and regulatory landscape is clearly evolving, moving toward a more modern, efficient, and inclusive system. These changes mark a pivotal moment for individuals, businesses, and government entities alike, as they navigate new processes, embrace digital tools, and contribute to the country’s sustainable development.
