Update on new regulations in May 2026

Our Newsletter #46 would lead you on the following:

LEGAL UPDATE

I. Incentives for digital technology industry activities and criteria for digital technology industry human resources

On 31 December 2025, the Government issued Decree No. 353/2025/ND-CP (“Decree 353”) detailing a number of articles and measures for the implementation of the Law on Digital Technology Industry, effective from 01 January 2026. Decree 353 sets out regulations on incentives and support mechanisms for the digital technology industry, while also establishing criteria applicable to high-quality digital technology industry human resources and controlled-testing digital technology products and services.

1. Investment incentives for digital technology industries

Under Decree 353, activities relating to the manufacturing of digital technology products, provision of digital technology services, and investment in the construction of digital technology industry infrastructure are entitled to incentive and support mechanisms in accordance with the Law on Digital Technology Industry.

In particular, projects operating in high-technology sectors, including artificial intelligence (AI), semiconductors, big data, cloud computing, and data centers, may enjoy various incentives and support policies relating to taxation, credit, land use, and research and development (R&D) activities.

In addition, Decree 353 provides separate incentive mechanisms for the semiconductor industry, specifically as follows:

1. Enterprises participating in the development of the semiconductor industry are entitled to special mechanisms and policies, including financial support for workforce training and research and development activities in accordance with Article 39 of the Law on Digital Technology Industry; and
2. In particular, enterprises participating in the semiconductor supply chain are entitled to special incentives and support mechanisms in accordance with Article 40 of the Law on Digital Technology Industry.

2. Criteria for high-quality digital technology human resources

Under Decree 353, high-quality digital technology industry human resources refer to individuals operating in the digital technology sector who fall within one of the following categories:

1. Employees working at enterprises; or
2. Graduates from higher education institutions; or
3. Individuals working, teaching, or conducting research at higher education institutions or research organizations; or
4. Officials, civil servants, and public employees working at state authorities; or
5. Individuals with outstanding contributions to the digital technology sector.

For each of the above groups, Decree 353 provides corresponding assessment criteria relating to professional qualifications, technological skills, practical experience, and research and development capabilities in the digital technology sector in accordance with Articles 7, 8, 9, and 10 of Decree 353.

3. Criteria for digital technology products and services

Under Decree 353, controlled-testing digital technology products and services must satisfy certain conditions and criteria, specifically as follows:

1. The products and services must apply digital technologies and be developed based on the integration and combination of digital technologies or between digital technologies and other sectors and industries;
2. The implementation of such products and services has not yet been regulated under current laws or contains elements inconsistent with existing legal regulations, thereby creating difficulties for practical implementation;
3. The organizations or enterprises proposing the testing activities must establish risk management plans, remedial measures, and mechanisms to protect the rights and interests of relevant parties during the testing process; and
4. The products and services must demonstrate innovation, the ability to create added value, and contribute to technological development.

In addition, controlled-testing digital technology products and services must comply with requirements relating to cybersecurity, data protection, and supervision mechanisms during the testing process in accordance with relevant laws and regulations.

II. Tax declaration and financial obligations of taxpayers

On 31 December 2025, the Government issued Decree No. 373/2025/ND-CP (“Decree 373”), amending and supplementing a number of articles of Decree No. 126/2020/ND-CP detailing several provisions of the Law on Tax Administration 2019; effective from 14 February 2026. Decree 373 revises regulations relating to tax declaration and financial obligations of taxpayers, particularly provisions on personal income tax, value-added tax, and land-related revenues.

1. Value-added tax declaration

Under Decree 373, taxpayers who are subject to monthly personal income tax declaration may opt for quarterly declaration if they meet the conditions for quarterly value-added tax declaration, i.e., where the total revenue from sale of goods and provision of services in the preceding year does not exceed VND 50 billion, based on VAT returns of the tax periods in the calendar year.

If the conditions for quarterly declaration are not satisfied, the following shall apply:

1. Where the taxpayer self-identifies that it/he/she is not eligible for quarterly declaration, the taxpayer must switch to monthly declaration from the first month of the following quarter, re-submit monthly tax returns for the previous quarters, and pay late payment interest in accordance with regulations.
2. Where the tax authority determines that the taxpayer is not eligible for quarterly declaration, the tax authority shall issue a written notice requiring the taxpayer to apply monthly declaration from the first month of the following quarter, re-submit monthly tax returns for the previous quarters, and pay late payment interest in accordance with regulations, except where such determination is made through an inspection at the taxpayer’s premises. The taxpayer must comply with monthly declaration and re-submit the monthly tax returns as requested by the tax authority.
3. The taxpayer shall not be subject to administrative penalties for late submission of tax returns in respect of the tax returns that must be re-submitted due to the change of tax declaration period. The re-submitted monthly tax returns shall be deemed to replace the previously submitted quarterly tax returns.

2. Personal income tax finalization

Under Decree 373, resident individuals earning income from salaries and wages from 02 or more sources (with tax withheld at source) shall submit their tax finalization dossier to the tax authority directly managing the income-paying entity that pays the highest income during the year. If there are multiple highest income sources of equal amounts, the individual may submit the dossier to any one of the tax authorities directly managing such income-paying entities.

Where an individual submits a personal income tax finalization dossier to an incorrect tax authority, the receiving tax authority shall, based on the information available in the tax administration database system, support the transfer of such dossier to the appropriate tax authority managing the income-paying entity for processing in accordance with the law.

3. Financial obligations related to land

Decree 373 amends the provisions on the time of arising obligations to the state budget under the Law on Land 2024, specifically as follows:

1. Supplementing provisions on collection of land rent in cases where there is no land lease decision or land lease agreement, and additional payments for periods for which land rent/land use fees have not yet been calculated.
2. Time limit for issuance of tax notices: from 03 to 07 working days, depending on specific cases.
3. Clearly stipulating the procedures and timelines (no later than 05 working days) for competent authorities to exchange, correct, or supplement cadastral information as a basis for tax calculation.

III. Carbon trading exchange in Vietnam

On 19 January 2026, the Government issued Decree No. 29/2026/ND-CP (“Decree 29”) regarding the domestic carbon trading exchange, which came into effect on 19 January 2026. Decree 29 regulates activities concerning the domestic carbon trading exchange, with the following key highlights:

1. Roadmap for the establishment and operation of the domestic carbon trading exchange

Currently, the domestic carbon trading exchange is in its pilot operation phase, which will run until 31 December 2028. During this period, service fees for the exchange are waived. Effective from 01 January 2029, the Vietnam Securities Depository and Clearing Corporation, the Vietnam Stock Exchange, and the Hanoi Stock Exchange will commence the collection of service fees for the domestic carbon trading exchange in accordance with the law.

2. Domestic registration and coding of greenhouse gas emission quotas and carbon credits

Greenhouse gas emission quotas and carbon credits must undergo centralized registration on the National Registration System managed by the Ministry of Agriculture and Environment before being deposited or traded on the domestic carbon exchange. Accordingly, the Ministry of Agriculture and Environment shall register the following information on the National Registration System:

1. Information regarding greenhouse gas emission quotas and carbon credits; and
2. Information concerning the organizations owning such greenhouse gas quotas, carbon credits, including identification details of the organization, and the number of greenhouse gas emission quotas and carbon credits held.

3. Transfer of ownership of greenhouse gas emission quotas and carbon credits

The Vietnam Securities Depository and Clearing Corporation shall perform the transfer of ownership and record the ownership of greenhouse gas emission quotas and carbon credits for trading participants immediately upon the completion of payment. At the end of each trading day, the Vietnam Securities Depository and Clearing Corporation is responsible for submitting the payment results and end-of-day ownership balances of greenhouse gas emission quotas and carbon credits to the Ministry of Agriculture and Environment for updating into the National Registration System.

Note: The Ministry of Agriculture and Environment shall provide guidance and implement the transfer of ownership for cases occurring outside the carbon trading system that are not specified above. For greenhouse gas quotas or carbon credits already deposited at the Vietnam Securities Depository and Clearing Corporation, the Ministry of Agriculture and Environment can only transfer ownership outside the carbon trading system after greenhouse gas emission quotas and carbon credits have been withdrawn from the carbon trading custody and settlement system.

4. Trading on the domestic carbon trading exchange

Trading participants are permitted to use only 01 securities account, opened in accordance with securities laws, at a carbon trading member to trade greenhouse gas emission quotas and carbon credits. This must follow the principle of strict segregation between carbon trading activities and other trading activities. Carbon trading members must separate greenhouse gas emission quota and carbon credit transactions, ensuring independent monitoring and accounting, and are prohibited from cross-clearing or borrowing assets from other trading activities. The trading account interface must clearly distinguish between the carbon trading component and the securities trading component upon user login.

When conducting transactions, the following requirements must be noticed:

1. Trading participants must have sufficient funds when placing buy orders and sufficient greenhouse gas emission quotas or carbon credits when placing sell orders;
2. Carbon trading members are responsible for monitoring balances of quotas, credits, and cash and verifying the completeness and accuracy of order information; and
3. Carbon trading members shall notify participants of the transaction results immediately upon execution in the agreed-upon manner. Members must provide monthly statements of cash accounts, greenhouse gas emission quota depository accounts, and carbon credits to the participants, or upon their specific request.

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 May 2026

Writer: BLawyers Vietnam

Legal News and Update Team

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Newsletter #46 (EN version)

Maybe you are interested in reading other Newsletters of BLawyers Vietnam: Legal Newsletter in January 2026/ Legal Newsletter in February 2026/ Legal Newsletter in March 2026