July, 2025 Newsletter
August 21st, 2025
New regulations on the carbon market should take effect from August 01st, 2025
On June 09th, 2025, the Government issued Decree No. 119/2025/ND-CP, amending and supplementing a number of articles of Decree No. 06/2022/ND-CP regulating greenhouse gas emission mitigation and ozone layer protection, including amendments to the provisions on the assessment of greenhouse gas emission mitigation. Accordingly, the following notable new provisions regarding the carbon market are as follows:
- Amendment and supplementation of the subjects permitted to trade and to support trading in the domestic carbon market:
(i) Entities implementing exchange of greenhouse gas emission quotas are the establishments allocated quotas as prescribed in Article 12 of Decree No. 06/2022/ND-CP.
(ii) Entities implementing carbon credit exchange are agencies and organizations located on the territory of the Socialist Republic of Vietnam.
(iii) Entities providing transaction support are organizations that provide financial services, supporting activities of exchanging greenhouse gas emission quotas and carbon credits on the carbon market according to the provisions of law on domestic carbon trading floors.
- Adjustment of the roadmap and implementation timeline for the domestic carbon market as follows:
(i) Phase through the end of 2028:
+ Establish the National Registration System;
+ Develop and organize the pilot operation of the Domestic Carbon Trading Floor;
+ Deploy mechanisms for the exchange and offsetting of domestic carbon credits;
+ Implement activities to enhance capacity and raise awareness about carbon market development.
(ii) Phase from 2029:
+ Develop and implement an auction mechanism for greenhouse gas emission quotas;
+ Complete regulations on carbon credit management, greenhouse gas emission quota and carbon credit exchange activities; legal regulations on organization, management, operation of domestic carbon markets and for participation in the international carbon market.
Guidance on conditions for input value-added tax deduction
On July 01st, 2025, the Government issued Decree No. 181/2025/ND-CP detailing the implementation of certain provisions of the Law on Value-Added Tax (“Decree 181”). On the same day, the Ministry of Finance issued Circular No. 69/2025/TT-BTC detailing a number of articles of the Law on Value-Added Tax and guiding the implementation of Decree No. 181/2025/ND-CP (“Circular 69”). Accordingly, some notable contents regarding Value-Added Tax (“VAT”) are as follows:
- Non-cash payment documents are documents evidencing non-cash payments in accordance with the provisions of Decree No. 52/2024/ND-CP, except for documents showing that the buyer deposits cash into the seller’s account.
- Conditions for input VAT deduction:
(i) Possession of VAT invoices for purchased goods and services, or documents evidencing VAT payment at the importation stage, or documents evidencing VAT payment on behalf of foreign parties as guided in Article 6 of Circular 69.
(ii) Possession of non-cash payment documents for the purchase of goods and services (including imported goods) with a value of VND 5 million or more including VAT, except for certain special cases specified in point b clause 2 Article 14 of the Law on VAT, guidance in clause 2 Article 26 of Decree 181.
(iii) In certain specific cases, in addition to the conditions stated in points (i) and (ii) above, the following documents are also required:
+ For exported goods and services: a contract signed with a foreign party for the sale, processing of goods, provision of services; invoices for sale of goods, provision of services; non-cash payment documents; customs declaration for exported goods; packing list, bill of lading, goods insurance documents (if any).
+ For export of goods via overseas e-commerce platforms and other special cases: the exporting entity must have documentation proving that the goods have been sold outside of Vietnam in accordance with detailed guidance for each case in Article 28 of Decree 181.
Guidance on health insurance premiums for employees
On June July 01st, 2025, the Government issued Decree No. 188/2025/ND-CP detailing and guiding the implementation of a number of articles of the Law on Health Insurance. Accordingly, Decree 188/2025/ND-CP provides guidance on health insurance premiums for employees as follows:
- Health insurance premiums paid by the employer or paid by the employee or jointly paid by the employer or employee:
+ The monthly premium of employees prescribed in points a, c, d and e clause 1 Article 12 of the Law on Health Insurance is equal to 4.5% of the monthly salary used as the basis for compulsory social insurance contribution, of which the employer pays two-thirds and the employee pays one-third;
+ The monthly premium of enterprise managers, controllers, representatives of state capital, representatives of enterprise capital as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Board of Controllers or controllers is equal to 4.5% of the monthly salary used as the basis for compulsory social insurance contributions and paid by the employee;
- Health insurance premiums paid by the social insurance agency:
+ The monthly premium of people who are receiving monthly retirement pensions, incapacity allowances is equal to 4.5% of their retirement pensions or incapacity allowance;
+ The monthly premium of employees on leave receiving monthly occupational accident and disease allowances; employees on leave receiving sick allowances for employees suffering from diseases on the list of diseases requiring long-term treatment or employees on leave receiving sick allowances for 14 working days or more in a month according to the provisions of the law on social insurance; employees on leave receiving maternity leave benefits for 14 working days or more in a month according to the provisions of the law on social insurance is equal to 4.5% of the basic salary;
+ The monthly premium for people receiving unemployment allowances is equal to 4.5% of unemployment allowances.
Supplementing some support policies to develop supporting industries
On July 14th, 2025, the Government issued Decree No. 205/2025/ND-CP amending and supplementing a number of articles of Decree No. 111/2015/ND-CP dated November 03rd, 2015, on the development of supporting industries (“SI”). Accordingly, the Decree expands the definition of SI (to include the processing of materials, accessories, components, and spare parts to supply for the production of complete products, instead of just manufacturing as before). It also supplements some new policies to support SI development, specifically:
(1) Environmental protection support:
- Investment projects to develop SI zones, industry clusters, and industry linkage zones are entitled to environmental protection incentives and support in accordance with law on environmental protection.
- Investors of projects producing SI products on the List of Priority Development SI Products will receive support as stipulated by law on environmental protection.
(2) Legal support: Enterprises producing SI products on the List of Priority Development SI Products will receive legal support in accordance with the Law on Support for small and medium-sized enterprises.
(3) Support for testing, inspection, appraisal, and quality certification: Enterprises producing products on the List of Priority Development SI Products are eligible for funding from the SI Development Program as follows:
(i) Support up to 50% of the costs of testing, appraisal, inspection, consulting on product quality certification, developing and publishing basic standards; costs of certifying quality management systems.
(ii) Support up to 50% of the cost of renting laboratories for testing, inspection, appraisal and certification of the quality of SI products.
(iii) Support up to 50% of the costs of testing, inspection, appraisal and certification of product quality at the testing, inspection, appraisal and quality certification system of state management agencies.
(iv) Support up to 50% of the cost for testing of measuring instruments; costs of inspection, testing, and calibration of measuring instruments and measurement standards; costs of granting quantitative stamp of products in accordance with technical measurement requirements.
(v) Support up to 50% of costs for brand recognition, copyright registration, intellectual property and barcode application.
(vi) Support up to 50% of the cost for testing and inspecting new patented products and goods.
(4) Support for market development: Enterprises producing products on the List of Priority Development SI Products are supported as follows:
(i) Priority to participate in State budget support programs such as the SI Development Program, the National Trade Promotion Program, the National Investment Promotion Program and other programs and projects.
(ii) Support up to 70% of the costs for trademark registration, participation in domestic and foreign trade fairs and exhibitions, investment promotion programs, business networking programs, market information access, consulting support for enterprises participating in global production chains, market research and development, and service fees for enterprises manufacturing products on the List of Priority Development SI Products.
(iii) Support up to 70% of the cost for collaborative projects between organizations, enterprises, multinational corporations and domestic suppliers, to improve the capacity of enterprises producing SI products to become suppliers.
(iv) Support up to 70% of consulting costs related to mergers and acquisitions for enterprises operating in the SI sector, including legal procedures, information search and provision, enterprise capability assessment, and hiring of experts or consulting firms.
Amending regulations on Innovative startup investment funds, effective from September 15th, 2025
On July 21st, 2025, the Government issued Decree No. 210/2025/ND-CP amending and supplementing a number of articles of Decree No. 38/2018/ND-CP dated March 11th, 2018 of the Government detailing investment in small and medium-sized innovative startup enterprise. This Decree amends a number of regulations on the Innovative startup investment fund, effective from September 15th, 2025, specifically as follows:
- An Innovative startup investment fund has no legal personality, with from 02 to a maximum of 30 investors contributing capital to establish on the basis of the fund’s Charter. Such a fund is not allowed to contribute capital to another innovative startup investment fund.
- Contributed capital may be in the form of Vietnamese Dong, land use rights, intellectual property rights, technology, technical know-how, and other assets that can be valued in Vietnamese Dong.
- List of investment activities of the Innovative startup investment fund:
+ Investing in small and medium-sized innovative startup enterprises. The total investment amount must not exceed 50% of the charter capital of the enterprise after investment;
+ Investing in convertible investment instruments;
+ Investing in the right to purchase shares in small and medium-sized innovative startup enterprises. Such transactions must not be transferred to third parties.
- Fund investors may establish or hire a company to manage the innovative startup investment fund. The fund management company is responsible for carrying out fund establishment procedures in accordance with legal regulations. During the management of the fund’s operations, the fund management company:
+ Must not use the fund’s capital or assets to invest back into the fund itself;
+ Must not use the fund’s capital or assets for commercial lending or guaranteeing any commercial loans;
+ Must not use the fund’s capital or assets to invest in listed stocks, registered-for-trading stocks, bonds, or fund certificates as defined by securities law;
+ Must not guarantee returns in the fund’s fundraising documents or activities.
- The innovative startup investment fund is permitted to use idle capital contributed by investors to place term deposits or purchase certificates of deposit at credit institutions as prescribed by law, provided capital safety is ensured. The fund management company may only deposit funds or purchase certificates of deposit at credit institutions approved by the fund’s Representative Board.
Plan for survey on actual investment capital for enterprises
On July 17th, 2025, the General Statistics Office issued Decision No. 927/QĐ-CTK promulgating the Plan for the survey on actual investment capital, serving as a basis for assessing the status of investment implementation, evaluating the impact of investment capital on economic growth, economic restructuring, and infrastructure development. Accordingly, enterprises should pay attention to the following matters to proactively comply:
- Scope and Subjects of the survey:
+ Scope: The survey will be conducted across all provinces and centrally-run cities nationwide (excluding special zones such as Bach Long Vi, Con Co, Con Dao, Truong Sa, and Hoang Sa) and covers all economic sectors from Section A to Section U under the Vietnam Standard Industrial Classification 2018.
+ Subjects: Enterprises, cooperatives in the phase of investment preparation for business and production, as well as enterprises, cooperatives, and independent accounting branches (collectively referred to as “enterprises”) that are currently in operation.
- Survey timeline:
+ Enterprise Listing: From January 01st to January 25th annually.
+ Quarterly Survey: Data collection from the 01st to the 18th day of the last month of each quarter.
- Survey content:
a. General information: Name, address, tax code, main business sector, economic type;
b. Information on results of actual investment capital:
(i) Actual investment capital classified by source: State budget capital; credit capital for development investment; loans; owners’ equity; capital raised from other sources.
(ii) Actual investment capital classified by investment items: Capital for basic construction; capital for acquisition of fixed assets for production purposes not via basic construction; capital for major repair, upgrade of fixed assets; capital for additional working capital under tangible assets using owners’ equity; other investment capital.
(iii) Actual investment capital classified by investment purposes: According to sectors under the Vietnam Economic Sector System in 2018.
(iv) Investment capital classified by provinces and centrally-run cities.
Removing difficulties and obstacles in implementing the two-level local government organization model in the fields of tax and business registration
On July 25th, 2025, the Ministry of Finance issued Official Telegram No. 05/CD-BTC on promoting the removal of difficulties and obstacles in implementing the two-level local government organization model in the fields of state budget, tax, public asset management and business registration. Accordingly, the Minister of Finance has requested competent agencies, organizations and individuals to urgently implement a number of contents to remove difficulties and obstacles in implementing the two-level local government organization model in the fields of tax and business registration as follows:
- Regarding tax field:
+ Actively coordinate with tax authorities and local press agencies to promote the dissemination of tax policies to people and businesses; provide direct guidance to taxpayers; post QR codes to access the electronic tax system; coordinate with the Ministry of Finance to organize training conferences for taxpayers and tax officials;
+ Direct the Public Administration Service Center to coordinate with tax authorities and relevant agencies to review the list of administrative procedures, maintain connection to the administrative procedure settlement information system in the area to ensure that the reception and return of administrative procedure settlement results are smooth, continuous and uninterrupted;
+ Direct the Department of Agriculture and Environment, the Public Administration Service Center to coordinate with tax authorities to deploy data connection, receive, resolve and return results of land administrative procedures of people and businesses electronically; guide and propagate to people and businesses about receiving Notice of payment of financial obligations on land electronically or at the agency receiving documents and returning results according to the one-stop, one-stop mechanism.
- Regarding business registration field:
+ Urgently and focus all resources to resolve overdue business registration dossiers; promptly resolve feedback from people and businesses, ensure smooth, continuous and effective implementation of administrative procedures, avoid interruption of production and business activities and affect the legitimate rights and interests of people and businesses;
+ Timely issue, reissue, and exchange documents as requested by organizations, individuals, and businesses due to changes in administrative boundaries when rearranging administrative units at all levels. Overcome and prevent the recurrence of businesses not being issued timely documents related to the business after changes in administrative boundaries.
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