Today : Aug 11, 2025
Politics
11 August 2025

Vietnam Proposes Sweeping Reforms For Roads And Business

Major draft laws aim to loosen driving hour rules, cut business barriers, and expand loan support for workers heading abroad as authorities seek to modernize regulations.

On August 11, 2025, a wave of proposed regulatory reforms swept across Vietnam, targeting a trio of crucial sectors: road traffic safety, business investment conditions, and support for laborers seeking work abroad. The timing and scope of these proposals, put forward by the Ministry of Public Security, the Vietnam Chamber of Commerce and Industry (VCCI), and the Ministry of Home Affairs, signal a concerted effort by Vietnamese authorities to modernize the country’s legal landscape and enhance its economic competitiveness.

Perhaps the most immediate impact will be felt on the roads. According to Laodong, the Ministry of Public Security submitted a draft law that would amend several key provisions of the Law on Road Traffic Order and Safety. The most controversial change? The removal of daily and weekly driving hour limits for commercial vehicle drivers. Under the current law, drivers are barred from operating vehicles for more than 10 hours per day or 48 hours per week, and from driving continuously for more than four hours. The proposed amendment would eliminate the daily and weekly caps, retaining only the rule against driving for more than four hours straight. Instead, working time would be governed by the broader Labor Code, aligning Vietnam’s road regulations with general labor standards.

This shift has sparked debate within the transport industry. Advocates argue that synchronizing with the Labor Code streamlines compliance and reflects the realities of modern logistics. Critics, however, worry that without explicit daily and weekly limits, drivers could face pressure to work dangerously long shifts, raising concerns about road safety. The Ministry maintains that the four-hour continuous driving limit will help prevent fatigue-related accidents, but the effectiveness of this safeguard remains to be seen.

Alongside changes to driver hours, the draft law introduces a formal definition of “intelligent transportation means.” As described in the proposal, these are motor vehicles capable of fully automated control and situational handling—a nod to the future of self-driving cars and smart transport systems. The law would also require commercial vehicles such as transport cars, tractors, ambulances, and internal transport vehicles to be equipped with journey monitoring devices and driver image recording systems. For passenger cars with eight or more seats (excluding the driver), a camera in the passenger compartment would become mandatory. These measures, according to the Ministry, are designed to enhance transparency and accountability on Vietnam’s increasingly busy roads.

Licensing procedures are also set for an overhaul. The Minister of Public Security would gain new authority to regulate the form, issuance, and use of both domestic and international driving licenses, with special provisions for military and security forces. Driving test centers would be required to meet strict technical standards and employ information technology to share test and monitoring data directly with licensing authorities—except in cases involving military or police personnel. Licenses obtained illegally or through fraudulent means would be subject to immediate revocation, reflecting a broader push to crack down on corruption and ensure only qualified drivers are on the road.

Meanwhile, the business community is watching closely as the Vietnam Chamber of Commerce and Industry (VCCI) responds to a Ministry of Finance call for a comprehensive review of conditional business sectors under the 2020 Investment Law. As reported by VCCI, the number of business sectors subject to investment conditions has ballooned in recent years, largely due to the addition of new sectors by specialized laws. The problem, VCCI argues, is that the official list fails to capture the true scope of regulated activities, as many broad categories encompass numerous sub-sectors that are also subject to conditions.

Since the 2020 law took effect, there has been no systematic review to assess whether these conditions remain appropriate. Drawing on criteria such as the impact on public interest, VCCI has now recommended abolishing 16 conditional business sectors outright. These include accounting services, customs procedures, rice export, temporary import and re-export of frozen food, foreign service providers’ trading activities in Vietnam, labor leasing, vehicle warranty and maintenance services, ship repair and renovation, foreign contractor construction activities, study abroad consulting, popular film services, art performance, fashion shows, beauty contests, and even printing and minting. VCCI’s rationale is that some of these sectors no longer pose significant public interest risks, or that alternative regulatory mechanisms are already in place.

In addition to outright abolition, VCCI has called for a narrowing or reconsideration of conditions on five other sectors: the manufacturing and repair of unmanned aircraft, fertilizer trading, aquatic seed trading, water resource exploitation services, and gold trading. The proposed changes, if enacted, could significantly reduce bureaucratic hurdles for businesses and foster a more open investment environment. However, some officials and industry insiders have expressed caution, warning that the rapid removal of conditions could expose the public to unforeseen risks or undermine regulatory oversight in sensitive areas.

While regulatory reform dominated headlines, the Ministry of Home Affairs turned its attention to the needs of Vietnamese workers seeking employment abroad. As detailed by Tạp chí Công Thương, the Ministry launched a public consultation on a draft decree that would allow eligible workers to borrow up to 100% of the costs associated with working overseas under contract. The maximum loan amount would be determined by the Vietnam Bank for Social Policies, based on available funds, actual expenses, and the borrower’s ability to repay. For loans exceeding 200 million dong, borrowers would need to provide collateral, in line with existing banking regulations.

The proposed loan term would match the duration of the overseas employment contract (excluding any extensions), ensuring that workers are not saddled with debt after returning home. Interest rates are set to be preferential but differentiated: most workers would pay a rate pegged at 125% of the rate for poor households, while certain priority groups—such as ethnic minorities or those from especially disadvantaged areas—would enjoy even lower rates. Overdue debts would be charged at 130% of the standard rate, a measure intended to encourage timely repayment.

To access these loans, applicants would need to submit a comprehensive dossier, including proof of eligibility, a copy of the employment contract, a valid passport, and any documents related to collateral. The process aims to be transparent and accessible, with the Vietnam Bank for Social Policies tasked with guiding applicants through each step. The Ministry emphasizes that these changes are aligned with the national strategy for the development of social policy banking through 2030, which seeks to balance financial sustainability with targeted support for disadvantaged groups.

These three sets of proposals—on road safety, business conditions, and labor support—reflect Vietnam’s ongoing efforts to modernize its regulatory framework in response to rapid economic and social change. Each initiative has its champions and critics, and the coming months will see intense debate as lawmakers, businesses, and the public weigh the potential benefits and risks. Whether these reforms will deliver the promised improvements in efficiency, safety, and opportunity remains to be seen, but the sheer breadth of the proposals signals a country eager to adapt and thrive in a fast-changing world.

As Vietnam stands at this crossroads, the choices made now will shape the country’s roads, businesses, and workforce for years to come.