You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

June 9, 2020

Government of Vietnam Issues Resolution to Boost Post-Pandemic Economy

Subscribe to Updates

On May 29, 2020, the government of Vietnam issued Resolution No. 84/NQ-CP, which mandates a number of economic relief and recovery measures in light of the COVID-19 pandemic. These measures include, among others, the reduction of certain government fees and charges and the easing of some regulations on foreign employees, trade, and construction. Some highlights of Resolution 84 are discussed below.

Reduction of Government Fees

To alleviate the hardship faced by companies affected by the COVID-19 pandemic, the government will temporarily reduce or suspend some fees and charges, including the following:

  • Land rent: 15% reduction of the 2020 rent for land plots leased directly from the state, applicable to renters making annual rent payments who were forced to suspend their operations due to the COVID-19 pandemic.
  • Auto industry: 50% reduction of vehicle registration fees until the end of 2020 for cars manufactured or assembled in Vietnam, in order to encourage domestic consumption.
  • Water resources: Exemption from the fee for granting the right to exploit water resources in 2020 for companies exploiting water resources for manufacturing and business activities.
  • SME loans: 2% reduction of interest rates on loans disbursed to eligible SMEs from the Small and Medium Enterprise Development Fund.
  • Tax: Contributions to COVID-19-fighting activities can be deductible expenses when calculating corporate income tax. The government also plans to seek approval for a 30% reduction of corporate income tax for 2020 for small and extra-small enterprises.

Foreign Employees

Foreign experts, company managers, investors, and high-tech workers working in investment and business projects in Vietnam will be allowed to enter Vietnam to maintain the operations of their companies while ensuring compliance with preventative measures against the epidemic. Foreigners entering on this basis are still subject to mandatory quarantine (currently, 14 days) and subsequent monitoring by the local health authority.

Work permits will be renewed for foreign experts, company managers, and technical workers currently working for companies in Vietnam, and new work permits will be issued to foreign experts, company managers, and technical workers who replace those who are unable to enter or will not return to Vietnam.

Manufacturing and Trade

The Ministry of Industry and Trade is tasked with implementing measures to overcome any disruption of the supply of raw materials for manufacturing facilities and businesses; to diversify export markets, facilitate trade promotions, and seek new markets for goods whose delivery has been canceled or delayed due to the pandemic; and to fully utilize the benefits brought about by free trade agreements, especially the EVFTA and CPTPP.

Certificates of origin (C/O) with electronic signatures or electronic seals, or scanned C/Os, will be accepted for submission to the customs authority for customs clearance to reduce difficulties for import/export companies. Furthermore, the HS codes for import and export goods are to be unified with those of other countries, especially the EU.

Personal Protective Equipment

The Ministry of Health is responsible for coordinating with relevant authorities to facilitate production of medical masks, sanitizing products, and other medical supplies to meet the demand for domestic consumption and export; as well as to simplify the evaluation and approval procedures for manufacturing, importing, and exporting personal protection equipment and medical devices.

Construction

The government will propose that the National Assembly allow certain provisions of the amended Law on Construction (currently available for public comments) to be applied as soon as the amended law is passed, including an exemption from construction permits for construction projects that meet certain conditions (e.g., those for which the construction design has been approved), and the transfer of authority to grant construction permits for special-classification projects from the Ministry of Construction to the provincial People’s Committees.

Outlook

In order to implement the measures stated in Resolution 84, the government as well as relevant ministries and local authorities will need to formulate and issue implementing decrees, circulars and official guidance. Thus, it will take some time for all the measures to take effect in practice.

If you have any questions or concerns, please reach out to us at [email protected] for our further assistance.

Related Professionals

Practices

Corporate/M&A

Dispute Resolution and Litigation

Real Estate

Tax

Location

RELATED INSIGHTS​ 

June 11, 2025
Thailand’s tax dispute resolution framework has undergone a significant transformation with the enactment of the Act Establishing the Tax Court and the Procedure for Tax Cases (No. 3) B.E. 2568. Published in the Government Gazette on May 27, 2025, the amended act will come into force on November 24, 2025, which is 180 days after its publication. The amended act marks a pivotal shift in the jurisdiction and procedures of the Tax Court, most notably by empowering it to adjudicate certain criminal tax cases for the first time. Background and Rationale The Tax Court was originally established in 1985 as a specialized forum to handle complex tax disputes, including those related to revenue, customs, and excise taxes. The creation of the Tax Court recognized the need for judicial expertise in tax law, given its technical and specialized nature. The latest amendment is designed to address procedural inefficiencies, modernize court processes, and align Thailand’s tax litigation system with international standards. The reform demonstrates Thailand’s commitment to enhancing the efficiency, transparency, and fairness of its tax dispute resolution mechanisms. Key Amendments and Provisions Six of the key changes in the amendment are highlighted below. Expansion of jurisdiction to criminal tax cases. The most significant change is the extension of the Tax Court’s jurisdiction to include criminal offenses under the Revenue Code, customs law, excise tax law, and other tax-related laws that may be specified by royal decree. New sections in the act explicitly grant the Tax Court authority to hear and decide criminal tax cases, so individuals and entities accused of criminal tax evasion or other tax-related crimes will now have their cases heard by judges with specialized tax expertise. The law also clarifies the Tax Court’s jurisdiction when a single act constitutes multiple offenses (some tax-related, some not) or when
Read More
June 6, 2025
As from July 1, 2025, as part of its ongoing efforts to digitalize and streamline the delivery of public services, the Vietnamese government will officially conduct administrative procedures, both online and offline, only via electronic identity (“e-ID”) accounts on the VNeID platform. In particular: Online administrative procedures carried out via the National Public Service Portal or via information systems for administrative procedures at the ministerial or provincial level are required to be implemented by using e-ID accounts only. When receiving dossiers, authorities will be required to check and verify the e-IDs of companies or individuals responsible for conducting administrative procedures. Further, it is worth noting that to complete the registration of an e-ID account for a company, the legal representative of the company must hold a level-2 e-ID account. Compliance Considerations Vietnam’s first regulation of e-ID accounts for individuals and organizations was issued in Decree No. 59/2022/ND-CP dated September 5, 2022, on electronic authentication and identification. This decree was subsequently replaced by Decree No. 69/2024/ND-CP dated June 25, 2024, which governs the same matters. Registration and operation of e-ID accounts are centralized through VNeID, a digital ID app developed by the National Population Data Center under the Ministry of Public Security of Vietnam. Although the registration of e-ID accounts for companies is not explicitly mandated by law, the absence of an e-ID account may hinder companies from completing administrative procedures, including licensing and reporting obligations. Such non-compliance could consequently result in administrative penalties. To mitigate unexpected non-compliance and administrative fines due to the lack of an e-ID account, companies should be well prepared for and implement the registration of a company e-ID account as soon as possible.
Read More
June 4, 2025
On April 2, 2024, the Cambodian Competition Commission (CCC) issued Decision No. 087 on Requirements and Procedures of Exemptions under the Law on Competition, outlining the requirements and procedures for requesting exemptions for agreements or activities that could prevent, restrict, or distort competition in Cambodia. Franchise agreements often include clauses such as price fixing, exclusive supply arrangements, or territorial restrictions, which could potentially raise concerns under the Law on Competition. Therefore, it is necessary for both franchisors and franchisees to understand how the law applies to their agreements and whether an exemption request may be required. Some arrangements under franchise agreements may fall within the scope of prohibited practices under the Law on Competition. These include horizontal and vertical agreements, abuse of dominant position, and anti-competitive business combination. If a business owner contemplates that their franchise agreement could be interpreted as anti-competitive, they must assess whether to apply for an exemption. Key Criteria for Exemption Under Decision No. 087, the CCC may grant an exemption if the applicant can demonstrate that the proposed agreement or activity meets all four of the following conditions: Significant and identifiable benefits: The agreement must provide clear technological, social, or economic benefits such as cost efficiencies, qualitative efficiencies, initiations of new technologies, or environmental and sustainable benefits. Necessity of the agreement/activities: These benefits must not be achievable without the proposed agreement or activity. The applicant must show that prevention, restriction, or distortion of competition are essential to realizing the benefits. Benefits outweigh harm: The positive impacts must significantly outweigh any adverse effects caused by the prevention, restriction, or distortion of competition, and the benefits should be likely to materialize within one year. No elimination of competition: The agreement must not eliminate competition in any substantial aspect of goods or services. Application and Supporting Documents
Read More
June 4, 2025
The growth of Vietnam’s vibrant digital economy offers tremendous potential but is also a driver of the persistent problem of online intellectual property (IP) infringement. The spectrum of issues faced by IP rights holders runs from copyright piracy on digital services (such as streaming and torrent sites) to the sale of counterfeit goods via e-commerce sites and social platforms to the misuse of rights through misleading use of trademarks. These infringements do not only eat into profits; they damage brand reputation and mislead consumers. As a result, site blocking and keyword blocking have become increasingly important components of the enforcement toolkit available in Vietnam. Legal Framework for Blocking Actions Site and keyword blocking in Vietnam is supported by a growing legal framework, particularly following the 2022 amendment to the IP Law. Prior to this, the legal basis for blocking was scattered across various laws, and internet service providers (ISPs) were only obligated to block access to infringing content upon official requests from authorities. The introduction of Article 198b under the amended IP Law marked a significant shift, establishing a clearer mechanism for rights holders to request site blocking directly. This provision obliges them to act upon valid takedown or blocking requests. In addition to the IP Law, other key legislation includes the Law on Information Technology, the Law on Cybersecurity, the Law on Advertising, and various decrees. Together, these laws provide a more structured and enforceable basis for blocking actions in Vietnam, though practical enforcement still depends on ISP cooperation and the clarity of the infringement evidence. Competent Authorities Previously, rights holders could pursue administrative actions through specialized inspectorates under the Ministry of Science and Technology, the Ministry of Culture, Sports and Tourism, or the Vietnam E-Commerce and Digital Economy Agency (iDEA). However, due to a recent government restructuring,
Read More