Notable new policies of Vietnam effective from the end of March 2025

1. Vietnam to increase allowances for commanding titles of militia and self-defense forces from March 23, 2025 

On February 4, 2025, the Government of Vietnam promulgated Decree No. 16/2025/ND-CP on amendments to Decree No. 72/2020/ND-CP on the development of forces and benefits and policies for militia and self-defense forces. 

According to the Decree, allowances for commanding titles of militia and self-defense forces shall be paid monthly as follows: 

- Commanding officers and political commissars of military commands of communes; commanding officers and political commissars of military commands of agencies and organizations: 561.600 VND; 

- Deputy commanding officers and deputy political commissars of military commands of communes; deputy commanding officers and deputy political commissars of military commands of agencies and organizations; commanders in chief of battalions, political commissars of squads; naval commanders in chief, political commissars of naval squadrons; commanders in chief of flotillas, political commissars of flotillas of standing militia; commanders in chief of companies, political commissars of companies of platoon of mobile militia and self-defense forces: 514.800 VND;

- Deputy commanders in chief of battalions, deputy political commissars; deputy naval commanders, deputy political commissars; commanders in chief of flotillas, deputy political commissars of standing militia; deputy commanders in chief of companies, deputy political commissars of platoon of mobile militia and self-defense forces: 491.400 VND; 

- Commanders in chief of companies, political commissars of companies; commanders in chief of flotillas, political commissars of flotillas; commanders in chief of platoons of mobile militia and self-defense forces; commanders in chief of platoons of standing militia: 468.000 VND; 

- Hamlet leaders: 280.800 VND and 100% of the allowances for commanders in chief of squads while concurrently serving as commanders in chief of squads of on-site militia or 100% of the allowances of commanders in chief of platoons of on-site militia.  If hamlets have on-site militia organized, hamlet leaders shall be eligible for 100% of the allowances for commanders in chief of squads; 

- Deputy commanders in chief of companies, deputy political commissars; commanders in chief of flotillas, deputy political commissars: 351.000 VND; 

- Commanders in chief of platoons; commanders in chief of squads of standing militia: 280.800 VND; 

- Commanders in chief of squads, fireteams and captains of ships: 234.000 VND.

See more details in Decree No. 16/2025/ND-CP, effective as of March 23, 2025. 

2. Vietnam’s amendments to Decree 132 on tax administration of enterprises engaged in related-party transactions 

On February 10, 2025, the Government of Vietnam promulgated Decree No. 20/2025/ND-CP on amendments to Decree No. 132/2020/ND-СР on tax administration of enterprises engaged in related-party transactions. 

According to Decree No. 20/2025/ND-CP, amendments to Points d and k and additions to Point b Clause 2 Article 5 of Decree No. 132/2020/ND-СР are as follows: 

- Amendments to Point d: 

“d) An enterprise guarantees or offers another enterprise a loan under any form (even including third-party loans guaranteed by financing sources of related parties and financial transactions of same or similar nature) to the extent that the outstanding balance of the loan amount of the borrowing enterprise equals 25% of its equity and makes up for more than 50% of total medium and long term debts of the borrowing enterprise.

Point d of this Clause is not effective in the following cases:

d.1) The guaranteeing or lending enterprise is an economic organization that operates in accordance with regulations of the Law on credit institutions and does not directly or indirectly participate in the management, control of, does not contribute capital or invest in the borrowing enterprise as prescribed in Points a, c, dd, e, g, h, k, l, and m of this Clause.

d.2) The guaranteeing or lending enterprise is an economic organization operating in accordance with regulations of the Law on credit institutions, and the borrowing enterprise is not directly or indirectly managed or controlled by, or invested in by another party as prescribed in Points b, e, and i of this Clause.”

- Amendments to Point k: 

“k) In other cases where an enterprise (including independent branches implementing declaration and payment for declaring and paying corporate income tax) has their business activities managed, controlled or decided de facto by the other enterprise;”

- Addition of Point m: 

“m) Credit institutions with their subsidiaries, or with their controlling companies, or with their associate companies as prescribed in the Law on Credit Institutions and related amending, replacing documents (if any);”

See more details in Decree No. 20/2025/ND-CP, effective as of March 27, 2025 and applicable from the corporate income tax period of 2024. 

3. Number and structure of members of management councils in public service providers concerning education in Vietnam  

On February 7, 2025, the Minister of Education and Training of Vietnam promulgated Circular No. 03/2025/TT-BGDDT on guidelines for management councils in public service providers concerning education and training. 

(1) The number of the members of a management council shall be an odd number in compliance with Clause 4 Article 7 of Decree No. 120/2020/ND-CP, including a President, Vice President (if any), Secretary, and the other members. The President, Vice President (if any), Secretary, and the other members of a management council shall be appointed by the head of the agency competent to approve the autonomous schemes of public service providers. 

(2) Member structure of a management council 

- Representatives of the education authority (if any); 

- Representatives of the superior governing body of the public service provider according to Clause 4 Article 7 of Decree No. 120/2020/ND-CP;

- Representatives of the leaders of the public service provider with a management council (leaders of public service providers prescribed in this Point include: heads and deputy heads of public service providers); 

- Representatives of public employees and employees of the public services provider with a management council; 

- Representatives of specialists and managers knowledgeable about issues relevant to the functions, tasks, and entitlements of public service providers. 

(3) The specific number and structure of members of management council shall be decided by the head of the agency competent to approve the autonomous schemes of public service providers according to Clause (1). 

See more details in Circular No. 03/2025/TT-BGDDT comes into force as of March 25, 2025. 

4. Vietnam’s regulations on cases where members of aircrews do not carry out flight tasks 

On December 31, 2024, the Minister of Transport of Vietnam promulgated Circular No. 65/2024/TT-BGTVT on amendments to the Civil Aviation Code on Aircraft and Operations, which contains additions to the regulations on the inspection of the alcohol concentration of members of aircrews. 

According to the Circular, members of aircrews are not permitted to carry out flight tasks when:  

- They have alcohol concentration in their blood or breath. 

- They use nervous system stimulants, excluding cases where the use of such stimulants does not affect the awareness and behaviors of users as assessed, designated, and confirmed by neuropsychiatric medical examiners.

See more details in Circular No. 65/2024/TT-BGTVT, effective as of March 31, 2025.

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