Vietnam's Resolution 66.18: What Businesses Need to Know About Administrative Reform

Resolution 66.18 introduces a special mechanism that allows the Government to temporarily reduce and simplify selected administrative procedures and business conditions while longer-term legislative amendments are being developed.

The initiative focuses on three key areas:

Reducing Business Conditions

The Resolution seeks to eliminate unnecessary, outdated or overlapping business requirements that may create barriers for companies.

This includes reducing reliance on certain licences, permits and sub-licences that can increase administrative complexity and slow business activities.

For businesses, this may help reduce compliance burdens and improve operational efficiency.

Simplifying Administrative Procedures

Government agencies are encouraged to streamline administrative processes and reduce documentation requirements.

A key objective is to increase the use of existing electronic databases so that businesses are not repeatedly required to submit information already held by government authorities.

If implemented effectively, this may help shorten processing times, improve administrative efficiency and reduce compliance-related costs.

Shifting Towards Post-Licensing Governance

One of the most significant features of the Resolution is the gradual shift from pre-licensing approvals towards post-licensing supervision.

Traditionally, businesses have often been required to obtain multiple approvals before commencing certain activities. Under the new approach, regulatory oversight may increasingly focus on monitoring compliance after operations have commenced.

This has the potential to reduce market-entry friction and improve business agility while maintaining appropriate regulatory oversight.

For organisations operating in Vietnam, the reforms may create opportunities to improve administrative efficiency and reduce regulatory burden.

Potential benefits include:

• Faster administrative procedures
• Reduced documentation requirements
• Lower regulatory barriers in selected sectors
• Improved efficiency when establishing or expanding operations
• Greater use of digital government services

However, businesses should note that the reforms do not remove compliance obligations. Rather, they signal a shift in how compliance may be administered and monitored.

As authorities place greater emphasis on post-licensing supervision, organisations should ensure internal governance, compliance and record-keeping processes remain robust.

The Resolution is expected to have implications across several regulated sectors, including:

• Customs services
• Employment services
• Labour outsourcing
• Automobile maintenance and repair
• Insurance auxiliary services
• Architectural services
• Data analytics

Businesses operating in these sectors should closely monitor further guidance and implementing regulations to understand how the reforms may affect licensing and operational requirements.

Resolution 66.18 establishes a temporary mechanism while the Government and other competent authorities consider broader legislative changes.

As a result, businesses should not assume that current simplifications will automatically become permanent.

Future amendments to laws, decrees and implementing regulations may further refine or replace the measures introduced under the Resolution.

Organisations should therefore continue monitoring regulatory developments and assess how future reforms may affect compliance obligations, licensing requirements and business operations.

While Resolution 66.18 is intended to reduce administrative complexity, businesses should take a measured approach to implementation and ensure they remain compliant throughout the transition period.

Key actions to consider include:

Assess Potential Opportunities Created by Regulatory Simplification

Businesses should review existing licensing, approval and compliance processes to identify areas where administrative reforms may improve efficiency or reduce operational friction.

This may be particularly relevant for organisations planning market entry, business expansion or operational restructuring activities.

Review Governance and Compliance Frameworks

As regulatory oversight increasingly shifts towards post-licensing supervision, organisations should ensure internal controls, compliance monitoring processes and record-keeping practices remain fit for purpose.

Strong governance frameworks will become increasingly important in demonstrating ongoing compliance.

Monitor Sector-Specific Regulatory Developments

Businesses operating in sectors expected to be affected by the reforms should closely monitor implementing guidance and legislative amendments.

Understanding how specific changes apply at an industry level will be critical for effective compliance planning.

Evaluate Market Entry and Expansion Plans

Companies considering investment or expansion in Vietnam may wish to reassess timelines, licensing assumptions and operational plans as administrative procedures continue to evolve.

Changes that reduce regulatory friction may create opportunities to accelerate certain business activities.

Engage Early With Regulatory and Compliance Advisors

As the reforms continue to develop, obtaining local regulatory guidance can help businesses understand practical implications, identify compliance risks and capitalise on opportunities arising from administrative simplification.

Regulatory reforms can create both opportunities and complexity for businesses operating across multiple jurisdictions.

Vistra supports organisations in Vietnam through market entry, entity management, corporate secretarial and compliance services, helping businesses navigate regulatory change with confidence.

Our specialists can assist with:

• Entity establishment and market entry planning
• Corporate governance and compliance support
• Licensing and regulatory advisory services
• Ongoing entity management
• Regulatory monitoring and legislative updates

By combining local expertise with regional capabilities, we help businesses adapt to evolving regulatory requirements while supporting growth and operational efficiency.