Key legal reforms introduced by Vietnam’s 15th National Assembly have significantly reshaped the country’s legal and regulatory landscape. Since taking office, the 15th National Assembly has pursued an ambitious legislative agenda to modernize governance, strengthen enforcement, and align Vietnam’s legal framework more closely with international standards. These reforms affect how businesses operate, how investors assess risk, and how authorities regulate economic and social activity.

For companies and investors operating in Vietnam, understanding the direction and substance of these legislative changes is essential. While many reforms are designed to improve transparency and efficiency, they also introduce higher compliance expectations and enforcement risks. This article provides an overview of the key legal reforms introduced by Vietnam’s 15th National Assembly and explains their practical implications for businesses and stakeholders.

Overview of Vietnam’s 15th National Assembly and Legislative Direction

The 15th National Assembly represents Vietnam’s highest legislative authority and plays a central role in shaping national policy and legal development. During this term, the Assembly has focused on improving the quality of legislation, addressing regulatory gaps, and responding to the demands of a rapidly evolving economy.

A defining feature of the 15th National Assembly’s legislative direction is its emphasis on consistency and enforceability. Rather than introducing isolated reforms, lawmakers have sought to revise interconnected laws to reduce overlap and ambiguity. This approach reflects a broader effort to create a more predictable legal environment while strengthening the state’s ability to enforce compliance.

Key Areas of Legal Reform Under the 15th National Assembly

The legislative overhaul under the 15th National Assembly spans multiple areas of law. While the scope is broad, several core themes consistently emerge across new and amended legislation:

• Economic and investment regulation, reflecting Vietnam’s deeper integration into global markets and the need for clearer investment frameworks.
• Corporate governance and compliance, with stronger expectations on transparency, accountability, and internal controls.
• Labor and employment law, balancing workforce protection with flexibility for businesses operating in a changing economy.
• Criminal enforcement and liability, particularly in relation to economic, financial, and corporate misconduct.
• Administrative and regulatory procedures, aimed at simplifying processes while strengthening enforcement coordination.

Together, these reform areas signal a shift toward stronger regulatory oversight combined with efforts to streamline procedures and reduce administrative friction.

Major Reforms Affecting Businesses and Investment

The legislative changes introduced by the 15th National Assembly have brought notable adjustments to how businesses and investors operate in Vietnam. The table below highlights key reform areas and their practical implications:

These reforms are intended to support sustainable investment growth while reinforcing regulatory discipline. Businesses benefit from more explicit rules but must be prepared for more consistent enforcement.

Reforms in Labor, Employment, and Social Policies

Labor and employment reforms under the 15th National Assembly reflect Vietnam’s efforts to balance economic development with worker protection. Legislative updates have refined employer obligations, clarified employee rights, and strengthened enforcement mechanisms.

Changes affecting foreign workers and cross-border employment arrangements have also drawn attention. Businesses employing foreign personnel must carefully monitor evolving requirements related to work authorization, labor contracts, and compliance obligations.

These reforms aim to align Vietnam’s labor framework more closely with international commitments while addressing domestic workforce needs.

Criminal Law and Enforcement Related Reforms

Recent criminal law reforms clearly emphasize on enforcement and deterrence. Legislative changes have expanded the scope of liability for economic and financial offenses, including those involving corporate misconduct.

Authorities have been granted stronger tools to investigate and prosecute violations, with increased penalties for serious offenses. These developments underscore the importance of preventive compliance measures, as regulatory breaches are more likely to result in enforcement action.

For businesses, the practical effect is a higher-risk environment in which internal controls, transparency, and governance are critical for  managing exposure.

Administrative and Regulatory Procedure Reforms

Administrative reform has been another cornerstone of the current legislative agenda. Legislative measures have sought to simplify procedures, reduce unnecessary approvals, and promote digitalization across government services.

E-government initiatives and streamlined administrative processes aim to improve efficiency and reduce delays. At the same time, authorities are working to enhance coordination among regulatory bodies to ensure consistent enforcement.

For companies, these reforms may reduce procedural burdens but also require adaptation to new systems and reporting expectations.

How These Legal Reforms Affect Foreign Investors and Cross Border Transactions

Foreign investors are directly affected by this legislative overhaul. While more straightforward rules and streamlined procedures have improved overall investment certainty, they are accompanied by higher expectations around compliance, governance, and regulatory engagement.

In practice, enforcement consistency is becoming as important as the wording of the law itself. Foreign investors may face closer scrutiny, particularly in areas such as corporate governance, financial reporting, related-party transactions, and compliance with licensing conditions. This is especially relevant when overseas headquarters and local operations are not fully aligned in terms of internal controls and decision-making authority.

Cross-border transactions, including capital contributions, restructurings, mergers, and exits, are now more closely reviewed by regulators. Approval timelines may be affected by enhanced due diligence requirements, and authorities may place greater emphasis on transparency and documentation throughout the transaction lifecycle.

These reforms also reflect Vietnam’s commitments under international trade agreements and investment treaties. While this strengthens legal alignment with global standards, it also means that foreign investors must be prepared for more consistent enforcement and fewer informal workarounds. Proactive engagement, clear governance structures, and a thorough understanding of local regulatory expectations are increasingly crucial for managing cross border legal risk.

Practical Implications for Businesses Operating in Vietnam

For many businesses, the most immediate challenge created by these legislative reforms is managing change during transitional periods. New laws often take effect before detailed implementation guidance is entirely issued, which can create uncertainty around how requirements will be applied in practice.

In this environment, businesses should expect closer engagement from regulators and a stronger focus on compliance fundamentals. Internal policies, contracts, and operational procedures may need to be reviewed to ensure they reflect updated legal requirements, particularly in areas such as governance, reporting, licensing conditions, and employment practices.

Another practical implication is timing. Regulatory approvals, inspections, and reviews may take longer as authorities adjust to new rules and enforcement priorities. Companies that plan, maintain clear documentation, and communicate proactively with regulators are generally better positioned to manage delays and avoid misunderstandings.

Ultimately, the reforms reward businesses that take a structured and forward-looking approach to compliance. Rather than reacting only when issues arise, companies that regularly assess legal changes and adapt their internal processes are more likely to reduce long term risk and maintain stable regulatory relationships.

Looking Ahead: Legislative Trends Beyond the 15th National Assembly

The legislative direction established by the 15th National Assembly is likely to influence future reforms. Continued emphasis on transparency, enforcement, and digital governance can be expected.

Businesses should anticipate further refinement of regulatory frameworks and increasing alignment with international standards. Staying informed and adaptable will remain essential as Vietnam’s legal system continues to evolve.

Conclusion

The legal reforms discussed above mark an essential phase in Vietnam’s ongoing legal modernization. Together, they reflect a clearer regulatory direction, stronger enforcement expectations, and a growing emphasis on transparency and accountability across sectors. For businesses and investors, these changes shape not only compliance obligations but also how risks should be assessed and managed in practice.

By understanding the intent and practical impact of these reforms, companies are better positioned to adapt early, maintain constructive regulatory relationships, and make informed strategic decisions. Le & Tran supports businesses navigating Vietnam’s evolving legal environment with clear, practical guidance tailored to real operational challenges. For professional support related to legislative changes and compliance in Vietnam, contact us at info@letranlaw.com.