Vietnam Business Regulatory, Tax and Investment Update Q1 2026
Key legal, tax and employment changes businesses need to act on now
Vietnam has introduced significant regulatory reforms across investment, tax, payroll, invoicing and global minimum tax compliance.
While these updates aim to modernise the regulatory framework and strengthen Vietnam’s competitiveness, they also increase governance expectations — particularly around post-licensing compliance, digital tax enforcement and cross-border transactions.
Below is a consolidated overview of the most important developments and what they mean for your business.
1. New Vietnam Standard Industrial Classification (2025 VSIC)
Effective: 15 November 2025
Vietnam has issued the 2025 VSIC to replace the 2018 version, aligning industry classification codes with international standards and strengthening national administrative databases.
Because VSIC codes determine registered business scopes, companies may need to reassess and update their registered business lines through a mapping exercise. While the 2025 VSIC is already effective, official implementation guidance and transition timelines are still pending.
Business implications
- Registered business scopes may need revision
- Licensing and compliance obligations may change
- Future filings must reflect updated classification codes
Recommended action: Conduct a VSIC mapping review now to ensure readiness once updates become mandatory.
2. Amended Law on Investment 2025
Effective: 1 March 2026 (with certain provisions from 1 July 2026)
The amended law shifts Vietnam’s regulatory approach from pre-licensing approvals to stronger post-licensing governance. The objective is to shorten entry timelines while strengthening compliance monitoring after operations begin.
Key changes
Special Investment Mechanism (opt-in)
Eligible projects in designated zones (industrial parks, high-tech parks, export processing zones, digital technology parks, free trade zones and financial centres) may be exempt from multiple upfront approvals.
Risk-based reduction of conditional sectors
Several sectors are removed from the conditional list. A revised list will clarify which activities remain subject to pre-licensing versus post-licensing governance.
Narrowed scope for in-principle approval
Only 20 defined project types will require in-principle approval.
Earlier entity establishment for foreign investors
Foreign investors may establish a business entity before obtaining an Investment Registration Certificate.
Practical takeaway
Licensing may become faster — but post-licensing audits and inspections are expected to intensify.
3. Employment & Payroll Updates
Effective 1 January 2026
3.1 Regional Minimum Wage Increase
Under Decree 293/2025/NĐ-CP, regional minimum wages increase from 1 January 2026.
Regional Minimum Wage Comparison
| Region | Minimum Wage (VND) Until December 31, 2025 | Minimum Wage (VND) From January 01, 2026 |
| Region 1 | 4,960,000 | 5,310,000 |
| Region 2 | 4,410,000 | 4,730,000 |
| Region 3 | 3,860,000 | 4,140,000 |
| Region 4 | 3,450,000 | 3,700,000 |
Impact:
- Increased payroll cost base
- Higher contribution ceilings
- Budget planning adjustments required
3.2 Unemployment Insurance (UI) Contribution Caps
UI contributions are capped at 20 times the regional minimum wage.
Maximum Salary for UI Contributions
| Region | Max. Salary contributions (VND) Until December 31, 2025 | Max. Salary contributions (VND) From January 1, 2026 |
| Region 1 | 99,200,000 | 106,200,000 |
| Region 2 | 88,200,000 | 94,600,000 |
| Region 3 | 77,200,000 | 82,800,000 |
| Region 4 | 69,000,000 | 74,000,000 |
3.3 SHUI Contribution Thresholds – Region 1
| Contribution Type | Minimum Salary (VND) | Capped Salary (VND) |
| Social Insurance | 5,310,000 | 46,800,000 |
| Health Insurance | ||
| Trade Union (2%) | ||
| Unemployment Insurance | 5,310,000 | 106,200,000 |
4. Personal Income Tax (PIT) Updates
Effective 1 January 2026
4.1 Personal & Dependent Relief Increase
| Relief Type | Until Dec 2025 (VND) | From Jan 2026 (VND) |
|---|---|---|
| Personal Relief | 11,000,000 | 15,500,000 |
| Dependent Relief | 4,400,000 | 6,200,000 |
4.2 Revised PIT Progressive Rates
| Monthly Assessable Income (VND) | Personal Income Tax Rate (%) |
| Up to 10,000,000 | 5% |
| Over 10,000,000 – 30,000,000 | 10% |
| Over 30,000,000 – 60,000,000 | 20% |
| Over 60,000,000 – 100,000,000 | 30% |
| Over 100,000,000 | 35% |
How Vistra can help
Vistra combines local regulatory expertise with global governance insight to help businesses operate confidently in Vietnam.
- VSIC mapping and business scope review
- Investment structuring and licensing strategy
- VAT and CIT advisory
- Global Minimum Tax readiness assessments
- Payroll and SHUI recalibration
- Invoicing system alignment and compliance review
Speak to our Vietnam specialists today to assess your exposure and implement the right compliance strategy.
The contents of this article are intended for informational purposes only. The article should not be relied on as legal or other professional advice. Neither Vistra Group Holding S.A. nor any of its group companies, subsidiaries or affiliates accept responsibility for any loss occasioned by actions taken or refrained from as a result of reading or otherwise consuming this article. For details, read our Legal and Regulatory notice at: https://www.vistra.com/notices. Copyright © 2026 by Vistra Group Holdings SA. All Rights Reserved.
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