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

April 24, 2020

Vietnam Loosens Strict Social Distancing Measures

Subscribe to Updates

The Government Office of Vietnam recently announced the conclusions of Prime Minister Nguyen Xuan Phuc regarding the combat of the COVID-19 pandemic following government meetings on April 20 and 22, 2020. Accordingly, the country has now moved into long-term epidemic combat, and thus needs to practice appropriate social distancing while facilitating the supply of goods and business development. As such, the strict social distancing guidelines under Directive No. 16/CT-TTg issued on March 31, 2020, have been lifted for most localities.

In particular, the risk categorization of the localities is as follows:

  • High-risk areas: Dong Van District of Ha Giang Province; Yen Phong District of Bac Ninh Province; Thuong Tin and Me Linh districts of Hanoi;
  • At-risk areas: Hanoi, except for the areas in the high-risk group;
  • Low-risk areas: the remaining provinces and municipal cities.

The high-risk areas will continue to implement the strict social distancing measures under Directive 16, while the other areas can begin to loosen such measures starting from April 23, 2020. However, it is strongly recommended that people should still have raised awareness regarding the risk of infection.

The heads of provinces and municipal cities are responsible for providing further guidance on the extent to which social distancing measures will be loosened, such as (i) facilitating the normal course of business while ensuring preventive measures, (ii) determining the risk level of subordinate locations (districts, communes) in order to apply the suitable preventive measures, (iii) guiding in detail the preventive measures based on the directions of the Prime Minister, the COVID-19 Task Force, and the Ministry of Health, and (iv) inspecting and supervising the implementation of preventive measures in agencies, offices, production establishments and schools in their respective locality.

Following up on the directions of the Prime Minister, the Chairman of Hanoi has announced that businesses can be re-opened from April 23, 2020, with the exception of non-essential businesses such as bars, karaoke, and online gaming hubs. Festivals, sporting events, and religious activities that require crowded gatherings are not yet allowed. Transportation services are allowed to resume but can only operate at 20-30% capacity in order to ensure safety for passengers.

The People’s Committee of Ho Chi Minh City also issued Official Letter No. 1490/UBND-VX on April 23, 2020, for further implementation of the COVID-19 fighting measures. Accordingly, some non-essential businesses and activities must remain closed until further notice, including hair salons, spas, entertainment centers, cinemas, bars, beer clubs, online gaming hubs, etc.; homestay and Airbnb establishments; religious gatherings or other meetings of more than 20 people; and public gatherings of more than 20 people outside offices, schools or hospitals. (Under Directive 16, public gatherings were limited to just two people.) Furthermore, transportation including taxi and ride-hailing services can resume operation from April 23, 2020. Inter-city passenger transport services may operate at from 30% to 50% of their capacity, depending on the risk categorization of the destinations. Public buses are expected to resume on May 3, 2020.

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

Employment

Location

RELATED INSIGHTS​ 

September 4, 2026
Foreign business restrictions on telecommunications, treasury center businesses, and intragroup support services were eased when Thailand published the Ministerial Regulation Prescribing Service Businesses Not Requiring Permission for Foreign Business Operations (No. 5) B.E. 2569 (2026) in the Government Gazette on August 28, 2026. The ministerial regulation expands the categories of service businesses that foreign investors may operate without a foreign business license (FBL) under the Foreign Business Act B.E. 2542 (1999) (FBA). Of particular relevance to the telecommunications, fintech, and technology sectors, the ministerial regulation exempts: Type 1 telecommunications licensees, which do not have their own networks; Treasury center businesses operated in accordance with Thailand’s exchange control regulations; and Certain intragroup administrative, human resources, and information technology management services. Telecommunications Services Foreign-owned businesses providing telecommunications services under a type 1 telecommunications license may now operate without obtaining an FBL. This may streamline market entry for qualifying telecommunications and digital infrastructure businesses. The exemption applies only to the FBA licensing requirement. Operators must continue to comply with applicable requirements under the Telecommunications Business Act and the regulations of the National Broadcasting and Telecommunications Commission, and the change does not affect foreign ownership restrictions applicable to type 2 or type 3 telecommunications businesses. Treasury Center Businesses The ministerial regulation also exempts qualifying treasury center businesses from the FBL requirement. This may facilitate centralized treasury functions in Thailand, including liquidity management, foreign exchange management, and intragroup funding arrangements. Treasury center operations remain subject to applicable requirements of the Bank of Thailand and other competent authorities. Intragroup Administrative, HR, and IT Services Certain administrative, human resources, and information technology management services provided between affiliated entities are also exempt, provided the relevant entities satisfy prescribed ownership or management criteria. The exemption is available where the service provider and recipient are related through specified ownership
Read More
September 4, 2026
Thailand’s cabinet has approved two draft amendments aimed at improving labor-related judicial proceedings. The proposed amendments to the Act on the Establishment of Labor Courts and Labor Case Procedure B.E. 2522 (1979) and the Act on Procedures for Human Trafficking Cases B.E. 2559 (2016) are intended to make the process more efficient, appropriate, and fair. Key elements of these proposed amendments are outlined below. Expansion of Labor Court Jurisdiction Under the current framework, labor courts generally hear labor disputes, while criminal offenses under labor laws are handled separately. Matters involving both labor and criminal issues may therefore require the parties to pursue proceedings before different courts. To address this, the proposed amendments would expand the jurisdiction of labor courts to cover certain criminal offenses under labor laws. The government states that the change is intended to allow related issues to be heard by judges with expertise in labor law and to reduce the need for parallel proceedings. The proposed amendments also set out the following rules for cases involving multiple offenses. Where a single act gives rise to multiple offenses and at least one of those offenses falls within the jurisdiction of the labor court, the labor court may hear the related offenses as part of the same case. Where multiple connected acts give rise to different offenses, the labor court may hear the matters together or transfer part of the case to the appropriate court, taking into account convenience and the interests of justice. Criminal Offenses Covered The proposed amendments would extend labor court jurisdiction to criminal offenses under 11 labor-related laws, including laws concerning: Home workers protection Labor protection Labor protection in fisheries work Employment and job-seeker protection Management of foreign workers Social security Occupational safety, health, and working environment Compensation Maritime labor State enterprise labor relations
Read More
September 1, 2026
Thailand has taken another step toward liberalizing its foreign business framework, exempting additional service activities and derivatives brokerage or agency businesses from the licensing requirements of the Foreign Business Act (FBA). Since the FBA came into effect, Thailand has taken a measured approach to opening its economy to foreign investment. While the FBA regulates foreign participation in businesses that may affect domestic interests, the framework has also evolved to allow foreign participation in certain business activities where sector-specific laws and regulatory frameworks already provide sufficient oversight, making additional FBA restrictions unnecessary. This is particularly true where Thai businesses are sufficiently capable of competing in certain service sectors, or where liberalization is intended to facilitate the provision of services among companies within the same corporate group. Against this backdrop, two new ministerial regulations have been issued pursuant to the FBA. Service Businesses Under the FBA Under the FBA, certain categories of business are restricted for foreign operators. List 3 of the FBA sets out businesses that foreigners may operate only if they obtain a foreign business license (FBL) or a foreign business certificate (FBC), or unless a specific exemption applies. List 3 (21) covers “other service businesses,” which is a catch-all provision that captures a wide range of service businesses not specifically enumerated elsewhere in the FBA. In practice, this means that most service activities carried on by foreigners in Thailand require an FBL or FBC unless otherwise exempted. Notwithstanding the foregoing, the FBA provides a mechanism to address this breadth by empowering the Minister of Commerce to issue ministerial regulations excluding specific types of service businesses from List Three (21). Once a service business is so excluded, foreigners may operate it without obtaining an FBL or FBC. Prior to the new regulations, four ministerial regulations had been issued to
Read More
August 31, 2026
Thailand has introduced a new regulatory framework that may expose foreign nationals who violate the Foreign Business Act (FBA) to deportation. The Regulation of the Office of the Prime Minister on Deportation B.E. 2569 was published in the Government Gazette on August 27, 2026. The regulation establishes an administrative process for referring foreign nationals for deportation where this is deemed necessary in the interests of public order or public morality. It does not create new substantive deportation powers, but it expressly identifies unlawful business conduct under the FBA—including nominee arrangements—as grounds for referral. Grounds for Deportation Referral The regulation sets out five grounds that may give rise to a referral to the relevant authorities: Unlawful entry into, or unlawful stay in, Thailand in violation of immigration laws. Unlawful employment or engagement in work in violation of laws governing the employment of foreign nationals. Carrying on business in violation of the FBA, including through the use of nominee arrangements. Forging official documents or using forged official documents. Committing an offense punishable by imprisonment of five years or more. The framework takes a broad approach, extending not only to the perpetrators of these acts but also to those who facilitate, instigate, or otherwise support such acts. Deportation Risk Following a Criminal Judgment Where a foreign national has committed any of the above offenses and has fully served the sentence imposed pursuant to a final judgment, the interior minister has the power to order deportation. This power also applies where a court has issued a final judgment sentencing a foreign national to imprisonment but has suspended the execution of the sentence, or has imposed a fine. A deportation order may also specify a period during which the foreign national is prohibited from reentering Thailand. FBA Noncompliance: Broader Consequences Noncompliance with the FBA—including
Read More