Vietnam enacts key economic policies starting July 1

THE HANOI TIMES — A series of new laws and decrees take effect on July 1, reshaping Vietnam’s tax system, e-commerce, urban planning, and rural credit access.

Several major legal changes come into force, including updates to value-added tax (VAT), mining safety, e-commerce taxation, and credit for rural development starting July 1, 2025.

The 2024 VAT Law, replacing the 2008 version, introduces key changes: certain exemptions are removed (including fertilizers, offshore fishing boats), promotional goods are taxed at 0%, and more goods increase from 5% to 10% rates. Input VAT refunds now require non-cash payments and a minimum threshold of VND300 million (US$12,000) over 12 months.

The Law on Geology and Minerals tightens safety rules for high-risk mines, while the Law on Urban and Rural Planning mandates transparent public disclosure of approved zoning plans within 15 days, except for classified content.

Decree 122 decentralizes tax administration and simplifies procedures, while Decree 117 requires e-commerce platforms to withhold and pay VAT and personal income tax for individual sellers. A new digital refund mechanism will also be introduced.

The government also raises lending caps and eases collateral rules under Decree 156, aiming to improve rural credit and support tech-driven agriculture. New rules under Decree 155 standardize the use of public office buildings, and Circular 39 sets limits on promotional values in retail, targeting pricing fraud. Lastly, Circular 86 allows personal ID numbers to replace tax codes, streamlining tax data and compliance.