Update on new regulations in July 2025

Our Newsletter #36 would lead you on the following:

LEGAL UPDATE

I. Extension and issuance of temporary residence cards for foreigners in Vietnam

On 13 June 2025, the Ministry of Foreign Affairs issued Circular No. 04/2025/TT-BNG (“Circular 04/2025”) amending and supplementing Circular No. 04/2016/TT-BNG (“Circular 04/2016”) guiding the procedures for visa issuance, extension of temporary residence, and issuance of temporary residence cards for foreigners in Vietnam under the authority of the Ministry of Foreign Affairs. Taking effect on 13 July 2025, the amended circular includes regulations on the extension of temporary residence cards for foreigners in Vietnam.

1. Extension of temporary residence for visa-exempt foreigners

Circular 04/2025 has amended and supplemented Circular 04/2016 in the direction of expanding the authority to process applications for foreigners who have entered Vietnam under visa exemption categories with visa types NG1, NG2, NG3, and NG4.

Specifically, the Consular Department or Department of Foreign Affairs of Ho Chi Minh City may consider extending temporary residence or issuing visas one or multiple times, with the duration of each extension not to exceed the duration of the previously granted temporary residence, based on submitted documents in accordance with regulations applicable to the subject, unless otherwise provided by an international treaty to which Vietnam is a party.

Notably, the addition of the authority to “issue visas” is a new point compared to the previous regulations.

2. Competence of relevant authorities in issuing visas, extending temporary residence and granting temporary residence cards

Circular 04/2025 has amended and supplemented Circular 04/2016 by adjusting the authority to receive and process applications for the issuance of temporary residence cards for foreigners holding an NG3 visa, with the main points as follows:

1. From 13 July 2025, the Department of State Protocol and External Interpretation (formerly the Department of State Protocol), the Ministry of Foreign Affairs shall receive and process requests for, and issue temporary residence cards to, foreigners holding an NG3-typed visa.
2. Exception: this authority does not apply to cases involving members of foreign consular missions headquartered from Da Nang City southward (previously at Ho Chi Minh City), and their accompanying spouses, children under 18 years old, and domestic helpers during their term.

In addition, Circular 04/2025 introduces new regulations regarding the authority of the Department of Foreign Affairs of Ho Chi Minh City, Ministry of Foreign Affairs (“Department of Foreign Affairs of Ho Chi Minh City”), as follows:

1. Receiving and processing requests/notices for visa issuance and extension of temporary residence for foreigners holding NG1-, NG2-, NG3-, and NG4-type visas in provinces and cities from Da Nang City southward. Accordingly, Circular 04/2025 has added holders of NG4-type visas to the applicable subjects and revised the geographical scope from Da Nang City southward (previously from Quang Nam Province and Da Nang City southward).
2. Receive and process requests for the issuance of temporary residence cards for foreign consular members in provinces, cities from Da Nang City southward (previously at Ho Chi Minh City), as well as their accompanying spouses, children under 18 years old, and domestic helpers during their term.

3. Duration of temporary residence cards bearing the NG3 visa

Circular 04/2025 provides regulations on the validity of NG3-type temporary residence cards, as follows:

1. NG3-type temporary residence cards shall be valid for no more than 5 years and must be at least 30 days shorter than the remaining validity of the passport;
2. Expired temporary residence cards may be considered for renewal upon request by the foreign representative office in Vietnam.

Thus, Circular 04/2025 has clarified the expiration of the validity period of NG3-typed temporary residence cards.

II. Goods, services subject to value-added tax applicable to foreign organizations and individuals doing business in Vietnam

On 01 July 2025, the Ministry of Finance issued Circular No. 69/2025/TT-BTC (“Circular 69”) detailing some articles of the Law on Value-added tax and guiding the implementation of the Decree No. 181/2025/ND-CP (“Decree 181”), which takes effect on 01 July 2025, with some notable points related to goods and services subject to value-added tax (“VAT”) applicable to foreign organizations and individuals doing business in Vietnam.

1. VAT liability of foreign organizations and individuals doing business in Vietnam

According to the guidance of Circular 69, VAT applies to foreign organizations and individuals doing business in Vietnam, including:

1. Foreign business organizations with or without Vietnam-based permanent establishments; foreign business individuals who are residents or non-residents in Vietnam (“Foreign Contractors, Foreign Subcontractors”) doing business in Vietnam;
2. Foreign organizations and individuals that conducting part or all of the business activities, such as distributing goods, providing services in Vietnam, in which cases the foreign organizations and individuals remain the owners of the goods delivered to Vietnamese organizations and individuals or bear the costs of distribution, advertising, marketing, service level, and quality of goods delivered to Vietnamese organizations and individuals or determine the selling prices of goods or the charges of service provision; including cases where they authorize or hire Vietnamese organizations and individuals to perform part of the distribution service or other services related to the sale of goods in Vietnam;
3. Foreign organizations and individuals that conduct negotiations and sign contracts in their own names through Vietnamese organizations and individuals; and
4. Foreign organizations and individuals that exercise the right to export, import, distribute in the Vietnamese market; purchase goods for export; and sell goods to Vietnamese traders in accordance with the commercial law regulations.

Of note, the regulation on the application of VAT to foreign organizations and individuals doing business in Vietnam, as stated in Circular 69, does not apply to the following foreign organizations and individuals:

1. Organizations that are lawfully established in accordance with the law of Vietnam;
2. Foreign organizations and individuals supplying goods to Vietnamese organizations and individuals, without accompanying services performed in Vietnam, delivered at a foreign border gate;
3. Foreign organizations and individuals supplying goods to Vietnamese organizations and individuals, without accompanying services performed in Vietnam, delivered at a Vietnamese border gate;
4. Foreign organizations and individuals providing repair services (with or without replacement materials, equipment) for transportation vehicles, machinery, and equipment (including submarine cables and transmission equipment) to Vietnamese organizations and individuals, where these services are performed overseas;
5. Foreign organizations and individuals providing advertising and marketing services (excluding advertising and marketing on the Internet) to Vietnamese organizations and individuals, where these services are performed overseas;
6. Foreign organizations and individuals providing investment and trade promotion services to Vietnamese organizations and individuals, where these services are performed overseas;
7. Foreign organizations and individuals providing brokerage services for selling goods, or services for providing services to other countries, to Vietnamese organizations and individuals, where these services are performed overseas;
8. Foreign organizations and individuals providing training services (excluding online training) to Vietnamese organizations and individuals, where these services are performed overseas;
9. Foreign organizations and individuals providing international telecommunications and service charge (payment charge) sharing services between Vietnam and foreign countries; service for leasing international transmission lines and satellite bandwidth from foreign entities in accordance with the Law on Telecommunications; international postal charge (payment charge) sharing services between Vietnam and foreign countries in accordance with the Law on Post and international postal treaties to which the Socialist Republic of Vietnam is a contracting party, to Vietnamese organizations and individuals, where these services are performed overseas;
10. Foreign organizations and individuals using bonded warehouses or inland container depots (ICD) as storage facilities to support international transportation, transit, transshipment, goods storage, or for other enterprises to process goods; and
11. Foreign organizations and individuals supplying other goods and providing other services to Vietnamese organizations and individuals, where the provision of such goods and services is performed overseas and they are not consumed in Vietnam.

2. Goods and services subject to VAT

Circular 69 detailing a number of goods and services subject to VAT for foreign organizations and individuals doing business in Vietnam, specifically as follows:

1. Services or services associated with goods subject to VAT provided by Foreign Contractors or Foreign Subcontractors under contractor or subcontractor agreements, used for production, business, and consumption in Vietnam (except for cases where foreign organizations and individuals doing business in Vietnam are not subject to VAT), where such services are supplied and consumed in Vietnam;
2. Services or services associated with goods subject to VAT provided by Foreign Contractors or Foreign Subcontractors under contractor or subcontractor agreements, used for production, business, and consumption in Vietnam (except for cases where foreign organizations and individuals doing business in Vietnam are not subject to VAT), where such services are supplied outside of Vietnam but consumed in Vietnam;
3. In cases in which goods are supplied under contract specifying that: the point of delivery of goods is located within the territory of Vietnam (except in the case where foreign organizations and individuals using bonded warehouses or inland container depots as storage facilities to support international transportation, transit, transshipment, goods storage, or for other enterprises to process goods), or the supply of goods includes services performed in Vietnam such as installation, test run, warranty, maintenance, replacement, or other accompanying services (including cases where such accompanying services are provided free of charge), regardless of whether the value of such services is included in the value of the goods supply contract, the value of the goods is only subject to VAT at the import stage in accordance with regulations, while the value of the services is subject to VAT in accordance with this Circular. If the contract does not allow for the separate identification of the value of goods and the value of accompanying services (including accompanying services provided free of charge), the VAT shall be calculated on the entire contract value.

III. Organization and implementation of the issuance of certificates of origin and written approvals for traders to self-certify the origin of exports

On 22 June 2025, the Ministry of Industry and Trade issued Circular No. 40/2025/TT-BCT (“Circular 40”) prescribing the issuance of certificates of origin (“C/O”) and written approvals for traders to self-certify the origin of exports (“Written Approvals”) under Clause 6 Article 28 of Decree No. 146/2025/ND-CP on the delegation of powers and decentralization in the field of industry and trade, which takes effect on 01 July 2025, with some important contents related to the issuance of C/O and Written Approvals.

1. Principles for organizing and implementing the issuance of C/O and Written Approvals

Circular 40 prescribes that organizing and implementing the issuance of C/O and Written Approvals must comply with the following principles:

1. Ensuring consistency and comprehensiveness in the state management of the origin of exported goods;
2. Ensuring compliance with the policy set out in the Law on Organization of the Government and the Law on Organization of Local Administration;
3. Ensuring compliance with regulations on competent agencies and organizations authorized to issue C/O and Written Approvals under treaties to which the Socialist Republic of Vietnam is a contracting party; and
4. Ensuring no disruption in the implementation of treaties to which the Socialist Republic of Vietnam is a contracting party and international agreements signed by departments under ministries, ministries, or ministerial-level agencies or higher containing provisions on the origin of goods.

2. Contents, scope of issuance of C/O and Written Approvals

Circular 40 prescribes the contents, scope of issuance of C/O, and Written Approvals as follows:

1. The Import and Export Department (the Ministry of Industry and Trade) shall issue and organize the implementation of the issuance of the types of C/O and Written Approvals listed in Appendix I of Circular 40 when the conditions of the issuance of C/O and Written Approvals are satisfied, as specified in item 3 below and relevant provisions of law;
2. Organizations assigned by provincial-level People’s Committees, within their delegated authority, shall issue the types of C/O and Written Approvals listed in Appendix II of Circular 40, in accordance with the Law on Organization of Local administration, specified in item 3 below, and relevant provisions of law;
3. The fulfilment of conditions shall be based on self-assessment using the form provided in Appendix III of Circular 40. The Import and Export Department (the Ministry of Industry and Trade) shall submit the results of the self-assessment to the Minister of Industry and Trade; organizations assigned by provincial-level People’s Committees shall submit the results of the self-assessment to the provincial-level People’s Committees and the Minister of Industry and Trade.

3. Conditions for issuance of C/O and Written Approvals

Circular 40 prescribes that the issuance of C/O and Written Approvals must comply with the following conditions:

1. Ensuring the availability of qualified personnel to issue and organize the issuance of types of C/O and Written Approvals;
2. Personnel authorized to sign C/O and Written Approval must receive training in the knowledge of goods origin;
3. Having an account for collecting fees for certification of the origin of goods;
4. Ensuring digital infrastructure for the implementation of the Electronic certificate of origin management and issuance System of the Ministry of Industry and Trade at the address http://www.ecosys.gov.vn that is continuous, stable, and enables smooth execution of the processes for collection of electronic certification fees, issuance of e-C/O, transmission of e-C/O data, and issuance of Written Approvals; and
5. Having a separate storage area and necessary equipment to store dossiers and documents for the issuance of C/O and Written Approvals.

The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. We would love to hear from you.

Date: 29 July 2025

Writer: BLawyers Vietnam

Legal News and Update Team

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