Vietnam Enacts New Regulations from August, Covering Livestock, Transport, and Taxation

The Vietnamese government has announced several new regulations set to take effect from August 2026, impacting a wide range of areas including livestock, traffic safety, taxation, investor selection, and duty-free sales. In the livestock sector, penalties for violations will be significantly increased. Individuals face fines of up to VND 100 million (approximately $4,000 USD), while organizations can be fined up to VND 200 million (approximately $8,000 USD), doubling the previous maximum. The fining authority of provincial chairpersons and cybersecurity units will also be enhanced. New provisions for electronic violation processing are being introduced, aligning with digitalization efforts. A new penalty will be imposed for failing to use appropriate safety devices when transporting children in vehicles. Drivers will receive a warning if children under 10 years old or shorter than 1.35 meters are transported without proper child restraint systems, aiming to bolster child safety. As part of digitalization initiatives, users of the Level 2 electronic identification app 'VNeID' will receive reductions in registration fees for used vehicles. Specifically, a 50% reduction will apply to used cars and a 100% exemption for used motorcycles. This incentive is available once per year, up to a certain limit, and will be in effect until the end of February 2027. Regulations concerning investor selection have been revised to offer preferential treatment in bid evaluations. Investors adopting high-tech or green technologies will receive a 5% preference, while those committing to technology transfer will get a 2% preference. Limits on costs related to bid document preparation and evaluation have also been set to streamline procedures. Online sales of duty-free goods will be newly permitted. Businesses will be required to transmit sales information to the customs electronic data processing system immediately after accepting an order, enhancing customs oversight and management. These new regulations are expected to strengthen market discipline, promote digitalization, and improve the safety and convenience of daily life under Vietnam's one-party system. The substantial increase in fines and the promotion of digital identification suggest a dual approach of enhancing government policy implementation capacity while simultaneously impacting citizens' lives. Source: Nhan Dan