Vietnam’s higher education system is at a pivotal stage of reform, with the government taking decisive steps to strengthen its policy and regulatory framework. In response to obstacles encountered during the implementation of the Law on Higher Education, issued in 2012 and amended in 2018, the third draft of the amended Law on Higher Education (Draft Law) is scheduled for submission to the National Assembly in October 2025. The Draft Law reflects the state’s commitment to aligning the education sector with international standards while addressing persistent structural challenges. The Draft Law emphasizes clarifying institutional mandates, enhancing accountability, and modernizing governance models to enable higher education institutions to operate with greater autonomy and efficiency. Against this backdrop, we outline below several notable provisions of the third draft and their potential implications for higher education institutions (HEIs) in Vietnam. Applicable Entities In addition to HEIs as defined and covered under existing legislation, the Draft Law extends its scope of applicable entities. The current Law on Higher Education does not regulate training institutions under state agencies, the armed forces, or political and social organizations, nor does it provide specific provisions for institutions offering only postgraduate education. To address this, the Draft Law introduces the term “institutions with higher education activities,” expanding its scope to include: (a) academies and research institutes established by the prime minister, mandated to provide doctoral-level training; (b) educational institutions affiliated with state agencies, political organizations, socio-political organizations, and the people’s armed forces, authorized to offer higher education programs in their specialized fields; and (c) institutions established pursuant to international treaties or by decision of the prime minister, with authorization to deliver certain levels of higher education. The inclusion of “institutions with higher education activities” represents a significant development both legally and institutionally. In an increasingly diversified higher education

In September 2019, the government of Vietnam issued Decree No. 75/2019/ND-CP on Administrative Sanctions in the Field of Competition (Decree 75) to address the urgent need for clear sanctioning mechanisms following the implementation of the new Law on Competition in July 2019. However, after five years of enforcement, various gaps and inconsistencies have been exposed that hinder its application. These shortcomings have reduced the deterrent effect of the sanctioning regime, and created legal uncertainty for market participants. A recent case involving Duc Giang – Lao Cai Chemicals’ acquisition of another chemical company—one of the first cases of economic concentration violation to be sanctioned by the National Competition Commission (NCC) since the Law on Competition took effect—highlights the practical difficulties under Vietnam’s competition law enforcement regime. In this case, although the transaction exceeded the statutory notification thresholds of economic concentration set out in the law, the parties failed to submit the required notification. This violation resulted in the NCC imposing aggregate fines of VND 1,423,982,880 (approximately USD 54,770) on the companies in September 2024. On appeal, Duc Giang – Lao Cai Chemicals argued that the chairman of the NCC was legally entitled to issue a warning as the key punishment instead of a monetary penalty. However, the chairman rejected the appeal, citing Article 14 of Decree 75, under which the specific penalty and level for “failure to notify economic concentration” is a fine, not a warning. While the chairman of the NCC is generally empowered to impose penalties, a warning cannot be applied if the specific regulation for a particular violation does not provide for it as a sanction. This example shows the inadequacy and inconsistency of the regulations on penalties for violations of competition law, and underscores the need for an amendment of Decree 75 to resolve such conflicts

As Vietnam accelerates its digital transformation, data centers have emerged as critical infrastructure supporting the shift toward a digital government, digital economy, and digital society. For businesses targeting Vietnam’s rapidly growing data center market, a clear understanding of the evolving regulatory landscape, compliance obligations, and government incentives is key to successful market entry and operation. This article provides a strategic overview of investment opportunities and key compliance requirements in Vietnam’s dynamic data center sector. Investment Incentives to Boost Data Center Growth Since July 1, 2024, organizations and individuals across all economic sectors have been encouraged to invest in and contribute to the development of data centers. By law, there are no restrictions on shareholding ratios, capital contributions, or foreign investor participation in data center and cloud computing services under business cooperation contracts. Currently, investment in AI data centers is classified as a specially incentivized industry, qualifying for preferential treatments and incentives in terms of investment, taxation, land use, and other related areas. Large-scale data centers, together with AI and cloud computing, are currently considered as strategic technologies and products for which Vietnam offers significant fiscal, tax, and land incentives to promote investment. Additionally, these large-scale projects may receive direct financial support from local development budgets for facility construction, technical infrastructure, and equipment procurement, subject to state budget provisions and applicable laws. AI data center construction projects also enjoy preferential treatment under customs regulations. Regulatory Approvals for Providing Data Center Services The 2023 Telecom Law and its guiding documents marked a significant milestone by classifying data center services as value-added telecom services. Under the law, a data center service is defined as a telecom service that enables users to process, store, and retrieve information via a telecom network through the leasing of part or all of a data center. A

Over the past two years—particularly since Thailand announced incentives for EVs, including tax exemptions and reductions—there has been a clear trend of manufacturers relocating their facilities to Thailand. This shift is reshaping the country’s industrial landscape and creating significant opportunities in the real estate sector for companies looking to establish or expand EV manufacturing operations in Southeast Asia. Incentive-Driven Market Transformation The government’s tax exemptions and reductions have proven effective in attracting foreign investment, with Chinese manufacturers currently dominating the market. Most EV parts and car manufacturers operating in Thailand are from China, reflecting the prominence of Chinese EV brands that have already established a presence in the country. The sector encompasses manufacturers of electrical equipment as well as companies seeking to establish facilities for producing electric vehicle components, parts, and accessories. The surge in activity is evident across Thailand’s EV manufacturing sector, with legal practices handling these transactions experiencing unprecedented demand. Industrial Real Estate Framework and Market Dynamics Thailand’s industrial real estate framework provides compelling advantages for foreign manufacturers, who typically face restrictions on foreign land ownership under the Land Code. However, foreign investors can benefit from exemptions to these restrictions if the land is located within industrial real estate zones designated by the Industrial Estate Authority of Thailand (IEAT) or they obtain investment promotion from the Board of Investment (BOI) if the land is located outside an industrial estate area governed by the IEAT. Both the IEAT and BOI provide special tax and nontax incentives, including foreign land ownership, with even greater incentives available for land situated within the country’s Eastern Economic Corridor (EEC). This regulatory advantage has sparked a parallel trend in land development. Industrial real estate developers in the EEC are actively consolidating land into large plots to develop new industrial estate projects, recognizing that