The “Vietnam Business Law Flow Report 2025,” released by the Vietnam Chamber of Commerce and Industry (VCCI), describes 2025 as a “record-breaking year for legislation” in Vietnam. According to Mr. Dau Anh Tuan, Vice Secretary-General and Director of Legal Department at VCCI, the National Assembly (NA) passed some 89 laws during the year, or five to six-times as many as the average in previous legislative periods. During the October 2025 session alone, lawmakers amended more than 50 laws. At the same time, more than 300 decrees were issued within a single year.
From the perspective of business associations, this unprecedented pace reflects a strong political commitment by the government to improve the legal framework supporting socio-economic development.
As a specific example, Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors (VACC), noted that the Land Law, which was enacted in 2024, was already placed on a fast-track amendment schedule by 2026 to address provisions deemed unsuitable in practice. Whereas it took ten years to move from the 2003 Land Law to the 2013 version and another eleven years before a newer version was introduced in 2024, the legislative mindset has clearly changed. “This demonstrates a determination to revise laws quickly in response to the immediate needs of production and business activities,” he said.
The positive shift is also evident in the increased willingness of drafting agencies to listen to stakeholders. Ms. Dao Thu Huyen, Deputy Director of External Relations at Canon Vietnam, expressed surprise that more than 90 per cent of business feedback was incorporated swiftly into several draft laws.
The Ministry of Public Security and the NA’s National Defense and Security Committee, for example, repeatedly invited businesses to direct consultations on the Law on Personal Data Protection and cybersecurity regulations, despite the highly-specialized nature of those fields. Meanwhile, the legislature’s Committee for Science, Technology and Environment accepted recommendations to abolish requirements that export goods comply with domestic standards; a move that significantly reduced regulatory burdens on businesses.
Quick but not always practical
Despite such positive developments, the rapid pace of lawmaking is triggering concerns about legislative quality and the economy’s ability to absorb constant regulatory change. One notable trend is the growing use of expedited legislative procedures. The proportion of legal documents developed under fast-track processes has risen sharply in recent times, from 9 per cent in 2023 to 28 per cent in 2024 and then 43 per cent in 2025.
Mr. Tuan acknowledged that while accelerated procedures help ease pressing bottlenecks, they also reduce opportunities for broad consultation, leaving many businesses unprepared for policy changes. A case in point is Decree No. 46/2026/ND-CP on food safety. Because the Decree was drafted and issued so quickly, many businesses were unaware of its contents before it took effect, resulting in significant cargo congestion at seaports as companies struggled to prepare the documentation required under the new rules.
Another issue highlighted by VCCI is the increasingly short transition period between promulgation and implementation. On average, legal documents now take effect just 15.3 days after issuance; far below the 45-day minimum period stipulated by the Law on the Promulgation of Legal Documents.
According to Canon Vietnam, some regulations governing foreign workers and provisions under the Law on Chemicals effectively followed a “signed today, effective tomorrow” timeline, leaving both businesses and local authorities scrambling to adapt. In some cases, software systems had not yet been updated to comply with new regulations, forcing companies to suspend production because they could no longer import necessary chemicals legally.
At the same time, delays in issuing implementing regulations remain widespread. Eighty-two per cent of guiding documents were issued after the corresponding laws had already taken effect, creating legal gaps. Without clear implementation guidance, many local authorities lack any basis for processing administrative procedures, forcing businesses to put production and investment plans on hold.
Mr. Nguyen Van Phuc, former Vice Chairman of the NA’s Economic Committee, offered a blunt assessment: “In a one-month legislative session, more than 50 laws were passed. That means nearly two laws per day. Where is the time for lawmakers to consult and debate? This is an instant-noodle solution to deal with immediate circumstances. It cannot create a healthy legal system.”
Ministries should work with businesses to draft decrees and circulars at the same time they draft laws. It is unacceptable to issue a poorly-prepared law and then force society to wait for implementation guidance.
Compliance costs and regulatory bottlenecks
Businesses say that laws introduced rapidly but without sufficient coordination are creating significant compliance costs, particularly in environmental and chemical regulations. Ms. Nguyen Thi Vuong Ngoc, representing Panasonic Vietnam, said electronics manufacturers are facing mounting pressure from requirements under the Law on Environmental Protection.
When companies raise concerns about impractical regulations, regulators often ask them to provide quantitative market surveys and detailed reports to substantiate their claims. Such requirements are difficult for companies that lack dedicated policy research departments, especially given the limited consultation period.
“The lack of coordination between policy development and the handling of business feedback has created many frustrating situations,” Ms. Ngoc said. “Even six months after a new law takes effect, businesses are still struggling to understand how to comply. When concerns are raised with the Chemicals Agency at the Ministry of Industry and Trade, officials often explain that they were not involved in the drafting process and therefore do not understand the policy issues causing the bottlenecks. The result is manual guidance and instructions for businesses to conduct their own research.”
Regulatory inconsistencies within Vietnam’s legal system were also highlighted by Mr. Nguyen Hoai Nam, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP). He pointed to food safety regulations as an example. Vietnam remains one of the few countries where the Law on Food Safety does not provide a mechanism for changing the intended use of imported products.
As a result, imported goods brought into the country for export-oriented production cannot be sold in the domestic market if surplus inventory arises, even though customs authorities allow changes in intended use through re-declaration procedures. Such transactions may still be classified as smuggling under food safety regulations.
The contradiction is even more striking in the seafood sector. Vietnamese seafood products can meet stringent standards required by retailers such as Costco in the US and buyers in Europe, yet struggle to satisfy domestic requirements.
Vietnamese regulations require that antibiotic residue levels be absolutely zero, while even the world’s most advanced testing equipment can only detect residues down to a limit of detection (LOD) of 0.1 parts per billion (ppb).
Most countries apply a measurement uncertainty threshold, commonly known as the Minimum Required Performance Limit (MRPL). Vietnam does not formally recognize this concept, meaning products showing residue levels as low as 0.0001 ppb may still be rejected by domestic retailers.
New approach to policymaking
Experts argue that Vietnam must fundamentally rethink its legislative process if the legal framework is to support, rather than hinder, the country’s ambition of posting double-digit economic growth.
First, policymakers should move from one-way consultation to genuine dialogue. Drafting agencies should end the practice of merely circulating draft documents for comments and then issuing one-sided explanations without meaningful engagement. The Ministry of Construction was cited as a model worth replicating because of its regular roundtable discussions, which allow direct debate with business associations and help ensure regulations reflect real-world conditions.
Second, implementing regulations should be developed in parallel with legislation. “Ministries should work with businesses to draft decrees and circulars at the same time they draft laws,” Mr. Phuc said. “It is unacceptable to issue a poorly-prepared law and then force society to wait for implementation guidance.”
Third, the consultation process should be fully digitized. In the age of AI, the VCCI could play a leading technological role by building a real-time feedback platform that channels business concerns directly to the National Assembly and government agencies. Ministries should also eliminate paper-based urgent notices that often arrive at businesses several days after issuance, replacing them with integrated email systems and online public services that ensure timely communication.
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