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Jipyong News|GLOBAL LEGAL INSIGHT

Vietnam’s Digital Administrative and Tax Reforms for Transparency

2025.10.16

Introduction 
 
Effective July 1, 2025, the government of Vietnam reorganized local administrative units, transitioning from a three-tier to a two-tier structure and consolidating the former 67 provinces and centrally-run cities into 34.  Concurrently, Vietnam’s electronic identification and authentication system (VNeID) has been broadly implemented, and new policies under the amended VAT Law have taken effect.  These developments collectively signify Vietnam’s full-scale shift toward digital administration.  Foreign investors should monitor changes in competent licensing and supervisory authorities and prepare for increasingly digitalized interactions with public agencies and financial institutions.  
 
 
1. VNeID Rollout for Foreign Residents 
 
Under Decree 69/2024/ND-CP of Vietnam government (effective July 1, 2024), the Vietnamese government unified previously separate government-issued online accounts (e.g., tax, immigration) into VNeID, extending access to foreign residents via the competent Immigration Department.  Vietnamese citizens currently use VNeID (Level-1 via mobile app or Level-2 via in-person issuance by the Public Security authority) for various public services, including business registration, tax payments, social insurance, and immigration, as well as for authentication purposes for online economic activities, including banking, finance, insurance, and e-commerce. 
 
While not yet mandatory, VNeID is becoming increasingly essential as most online procedures and services are migrating to the platform.  Without VNeID, timely completion of online tax filings and other periodic submissions may become difficult. 
 
From July 1 to August 19, 2025, the government conducted a campaign encouraging foreign residents with residence cards to obtain VNeID and applications have remained open thereafter.  Applicants must appear in person at the competent Immigration Department with: 
  
<ul>
	<li>Residence card (temporary or permanent)</li>
	<li>Passport</li>
	<li>Smartphone with a Vietnamese mobile number registered in the applicant’s name</li>
	<li>Updated local address details (reflecting the July 1, 2025 administrative restructuring)</li>
</ul>

Activation instructions are typically emailed within 2–3 days, and issuance is completed via the mobile application linked to the registered Vietnamese mobile number. 
 
 
2. Expansion of E-Invoice Requirements and Enhanced Non-Cash Payment Regulations 
 
The amended VAT Law (Law No. 48/2024/QH15) took effect on July 1, 2025, introducing instruments aimed at enhancing digital tax administration, corporate transparency, and tax oversight.  
 
 
3. E-Invoices (Decree 70/2025/ND-CP, effective June 1, 2025)
Mandatory POS-integrated e-invoices apply to: 
 
<table border="0" cellpadding="0" cellspacing="0" width="100%">
	<tbody>
		<tr>
			<td style="width: 3%; text-align: justify;" valign="top"></td>
			<td style="text-align: center; vertical-align: top; font-size: 18px" width="5%">-</td>
			<td style="font-size: 18px" width="95%">Individuals/household businesses with annual domestic turnover of at least VND 1 billion</td>
		</tr>
		<tr>
			<td style="width: 3%; text-align: justify;" valign="top"></td>
			<td style="text-align:center; vertical-align: top; font-size: 18px">-</td>
			<td style="font-size: 18px">Shopping centers, supermarkets, and retail stores</td>
		</tr>
		<tr>
			<td style="width: 3%; text-align: justify;" valign="top"></td>
			<td style="text-align: center; vertical-align: top; font-size: 18px">-</td>
			<td style="font-size: 18px">Food and beverage businesses</td>
		</tr>
		<tr>
			<td style="width: 3%; text-align: justify;" valign="top"></td>
			<td style="text-align: center; vertical-align: top; font-size: 18px">-</td>
			<td style="font-size: 18px">Hotels</td>
		</tr>
		<tr>
			<td style="width: 3%; text-align: justify;" valign="top"></td>
			<td style="text-align: center; vertical-align: top; font-size: 18px">-</td>
			<td style="font-size: 18px">Passenger transportation operators</td>
		</tr>
	</tbody>
</table>

<div> 
Foreign suppliers of e-commerce and digital platform services into Vietnam without a local establishment may voluntarily issue e-invoices to align with domestic compliance.</div>

<ul>
	<li>Issuance timing:</li>
</ul>

<ul>
	<li>Corrections/Amendments:</li>
</ul>

<div> 
 
4. Non-Cash Payments (Decree 181/2025/ND-CP, effective July 1, 2025) 
 
<ul>
	<li>For transactions totaling VND 5 million or more (VAT-inclusive), settlement must be by non-cash means.</li>
	<li>If agreed in the contract, shares or bonds may be used as payment instruments.</li>
	<li>Where employees are authorized under internal delegation rules to make non-cash payments on behalf of the enterprise, reimbursement to those employees is expressly permitted and codified. </li>
</ul>
 
 
5. Practical Steps for Foreign Investors Under Vietnam’s Digital Administrative and Tax Reforms 
 
These measures reflect Vietnam’s ongoing transition to digital administration and greater transparency in the digital economy.  Foreign investors and foreign-invested enterprises should: 
 
<ul>
	<li>VNeID readiness:</li>
</ul>

<ul>
	<li>E-invoice compliance:</li>
</ul>

<ul>
	<li>Non-cash controls:</li>
</ul>

<ul>
	<li>Monitoring and engagement:</li>
</ul>

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	<tbody>
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			<td style="width: 3%; text-align: justify;" valign="top"></td>
			<td style="text-align: center; vertical-align: top; font-size: 18px" width="5%">-</td>
			<td style="font-size: 18px" width="95%">Monitor implementing guidance and local practices as agencies operationalize the new frameworks.</td>
		</tr>
		<tr>
			<td style="width: 3%; text-align: justify;" valign="top"></td>
			<td style="text-align:center; vertical-align: top; font-size: 18px">-</td>
			<td style="font-size: 18px">Engage proactively with tax authorities, banks, and service providers to address process changes and system integrations.</td>
		</tr>
	</tbody>
</table>
 
 
Conclusion 
 
Vietnam’s administrative restructuring, VNeID rollout, and targeted refinements to VAT and payment frameworks collectively advance a digital-first regulatory environment.  While these changes are expected to improve efficiency and transparency, their practical impact will depend on implementing guidance and on-the-ground practice.  Foreign-invested enterprises should conduct timely compliance assessments and operational adjustments to mitigate risk and leverage efficiencies under the new regime.    
 
 
  
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