On August 7, 2021, the Ministry of Planning and Investment (MPI) gathered and developed report No. 5192/BC-BKHDT to address the growth situations of business in 2020 and the first half of 2021. Accordingly, the MPI has proposed the Prime Minister consider, assign relevant authorities to do research and implement short- and long-term solutions. The short-term solutions need to be implemented immediately for Covid-19 prevention and control urgency as well as business support. The long-term solutions aim to create a base for business recovery and development.

Subsequently, on August 8, 2021, the Prime Minister conducted a conference meeting with the businesses in Vietnam for solutions to remove difficulties and promote business development.

This executive brief will help corporate leaders to have an overview of Vietnam’s policy framework, at least till 2025, with a view to better preparing for regulatory changes in the long run.

Urgent solutions and policies for immediate action

• Flexible and effective measures for Covid-19 prevention and control. Such as facilitating vaccination for companies, allowing companies to purchase medical tools for employees’ self-tests, recognizing vaccination passports.
• Smooth circulation of goods and improvement of supply chain and value chain to avoid disruptions. Such as organizing ‘green channels’ for inter-provincial and inter-regional transportation of goods, developing rules for ‘safe transportation against Covid-19’, applying technology to control the transportation of vehicles.
• Cost reduction and removal of cash flow difficulties. Such as decreasing payment of union fees, waiving road facility maintenance fees for companies, restructuring and extending debts for companies.
• Removal of difficulties in policies on labor and experts. Such as flexible regulations on issuance and renewal of work permits, improving entry procedures for experts into Vietnam to operate manufacturing and business.

Long-term policies for business recovery and development

• Strategic development of policies for business development for economic recovery. Such as promulgating regulations to develop leading private business groups, large-scale companies, establishing programs to support prioritized industries in each period.
• Efficient policies to support business, remove legal barriers, and simplify administrative process. Such as issuing programs to support small- and medium-sized companies, applying 24/7 custom procedures for OEM and FDI companies in technology and hi-tech industries.
• Facilitation to companies in digital conversion and innovation. Such as developing national digital conversion program and national strategy to boost digital technology companies in Vietnam, accepting risks and capital loss at an allowable level to encourage investment in technology and innovation.
• Improvement of operational efficiency and space exploitation of State-owned enterprises.

The regulatory framework of Vietnam is subject to daily changes. If you have any questions or concerns regarding the Government’s regulations in response to this pandemic, our experienced corporate attorneys are always available at letran@corporatecounsels.vn.