Have there been any significant regulatory developments in Vietnam over the last 12 months?

In 2025, Vietnam has taken a bold step in reshaping its corporate tax and enterprise legal landscape. The updates are significant and enable investors to leverage certain benefits.

On the tax side, Vietnam now applies differentiated CIT rates based on enterprise size, offering relief to smaller businesses while maintaining standard and elevated rates for larger and specialized sectors, with rates from 15-20%. Based on the new CIT Law, the government allows special cases where tax is calculated as a percentage of revenue (instead of taxable profit). The amended CIT Law maintains the foundational principles for expense deductibility—namely, that expenses must be genuinely incurred, related to business activities, and properly documented. While these core conditions are consistent with prior regulations, the new law introduces notable clarifications and specific rules that businesses should be aware of. In addition to the existing sectors eligible for CIT incentives—such as high-tech enterprises, information technology, education and training, healthcare, environmental protection, scientific research and technology development, agricultural and aquatic product processing, sports and culture, renewable energy, and infrastructure development—the new law introduces additional sectors that qualify for preferential tax treatment.

In respect to the enterprise law, the Ultimate Beneficial Ownership (UBO) is introduced – A Landmark Shift in Corporate Transparency. Under the Amended law of enterprise, an UBO is broadly defined as any individual who directly or indirectly owns or controls an enterprise, even if they do not appear as a named shareholder or legal representative. Although the draft initially proposed a 25% ownership threshold to determine UBO status which is similar to international norms, the final legislation delegates the authority to define specific identification criteria to the Government through forthcoming guidance. Under the amended law, “market value” is now defined with reference to several permissible bases: actual market transaction prices, the 30-day average price for listed securities, agreed prices between the parties to the transaction, or values determined by licensed valuation firms.

In addition, the authorities have implemented a critical administrative reform across its entire public apparatus, reducing the number of its provincial-level administrative units from 63 to 34 by the end of 2025. These changes will make infrastructure more accessible across the country, providing new growth opportunities in logistics, transport, and trade.

Lastly, Vietnam has launched the initiative to establish International Financial Centers in Ho Chi Minh City and Danang regions. HCM City will prioritise capital markets, banking, and monetary markets, along with sandbox frameworks to test financial innovation and fintech applications. It will also host specialised trading platforms and pioneer new digital transaction models. Meanwhile, Danang will serve as a hub for green finance, financial technology, and digital services. It will also pilot controlled platforms for digital assets and currencies, along with advanced payment ecosystems, and aims to attract remittance funds and boutique fund managers. There will be significant benefits for investors part of the IFCs, starting with streamlined incorporation process and reduced administration, incentives and reductions on corporate and personal income tax for foreign professionals working in IFCs. From an accounting and financial reporting perspective, the changes are significant, as investors are now able to undertake accounting compliance in IFRS instead of Vietnamese Accounting Standards, acceptance US dollar payments and other practical benefits for foreign investors.

How would you describe the health of the accounting industry in Vietnam in terms of customer demand, fee pressure, and staff recruitment and retention?

There is consistent demand for quality and professional accounting services in Vietnam, however there is a fee pressure which creates a highly competitive environment. This also reflects in staff retention, which has always been somewhat a challenge in the Vietnamese context, due to high competition and a solid accountancy workforce with relatively good skillset.

Are there any services areas where demand has grown over the last 12 months?

Tax refunds, tax advisory and tailored consulting services with cross-border tax implications have seen increased demand, on the back of the internationalization of trade and FDI expansion in Vietnam.

What are your expectations for the next 12 months - are there any potentially significant developments in the pipeline?

The Vietnamese authorities are pursuing a broad range of actions that seek to transform, digitalise and elevate the business environment in Vietnam. Transition to IFRS is on the map, which may start first with a pilot phase and IFC implementation. The new Danang Free Trade Zone will further enhance the FDI opportunity in the centre of Vietnam, and together with the implementation of the IFCs, the investor ecosystem will experience a solid growth, coupled with clearer legal frameworks across digital assets, fintech and the broader digital economy.