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Summary of Law No. 90/2025/QH15

by KMC Consulting Company Limited

Law No. 90/2025/QH15, effective from July 1, 2025, amends and supplements provisions of various laws related to investment, finance, and customs, including the Law on Bidding, the Law on Investment in the Form of Public-Private Partnership (PPP), the Law on Customs, the Law on Value-Added Tax (VAT), the Law on Export and Import Duties, the Law on Investment, the Law on Public Investment, and the Law on Management and Use of Public Property. Below is a summary of the key contents, with emphasis on amendments to the Law on Customs and the Law on VAT.

1. Amendments to the Law on Bidding

  • Scope of application: Expanded to allow organizations and individuals not using state budget funds to independently decide on applying this law.
  • Bidder incentives: Prioritizes high-tech enterprises, science and technology enterprises, or those employing women, persons with disabilities, and ethnic minorities.
  • Forms of contractor selection: Adds new forms such as ordering, self-implementation, and price negotiation; relaxes conditions for contractor appointment, especially for science, technology, and digital transformation projects.
  • Bidding procedures: Simplifies procedures, reduces documentation requirements for bidding dossiers, shortens tendering timeframes, and ensures publicity and transparency.

2. Amendments to the Law on Investment in the Form of Public-Private Partnership (PPP)

  • PPP project procedures: Simplifies procedures for preparing and appraising pre-feasibility and feasibility study reports, especially for projects not using state capital or in the fields of science and technology.
  • Authority: Provides clearer decentralization between the competent authority and the PPP contract-signing agency.
  • Prohibited acts: Prohibits disclosure of bidding documents or bids before public announcement, except in market survey cases.

3. Amendments to the Law on Customs

  • On-the-spot import and export goods (On-spot export/import): Defined as goods delivered and received within Vietnamese territory under contracts for purchase, processing, or leasing/borrowing between Vietnamese enterprises and foreign traders.
  • Abolishment of condition: Removes the requirement that “foreign traders must not have a commercial presence in Vietnam in order to conduct tripartite transactions.”.
  • Transitional provision: Customs declarations that have been registered but whose procedures have not been completed before July 1, 2025, will be subject to the new regulations of this law.

4. Amendments to the Law on Value-Added Tax (VAT)

  • Expansion of 0% VAT rate eligibility: Now includes “on-the-spot import and export goods,” providing a legal basis for applying the 0% VAT rate to XNKTC transactions.
  • Review of previous transactions: Issues related to VAT for past XNKTC transactions must continue to be reviewed and discussed to identify appropriate solutions.

5. Amendments to the Law on Export and Import Duties

  • Harmonization with the Law on Customs: Adjusts regulations on export and import duties to align with the new provisions on XNKTC goods.

6. Amendments to the Law on Investment

  • Decentralization of authority: Transfers certain investment policy approval powers from the Prime Minister to provincial-level People’s Committees.
  • Priority for Transit-Oriented Development (TOD): Projects under TOD planning are prioritized to promote sustainable urban development.

7. Amendments to the Law on Public Investment

  • Capital appraisal decentralization: The Ministry of Finance is responsible for appraising capital sources for national target programs and key national projects; ministries, central, and local agencies are responsible for appraising within defined limits.
  • Special projects: New regulations on procedures for special public investment projects, allowing for contractor appointment and simplified procedures to ensure timely implementation.
  • Extension of disbursement time: Allows disbursement to be extended until December 31 of the following year in cases such as key national projects, land clearance compensation, or natural disaster impact.

8. Amendments to the Law on Management and Use of Public Property

  • Management of public assets: Clarifies the use of public assets for investor payment in build-transfer (BT) projects, in accordance with the PPP Law.
  • Revenue from public assets: All revenue from the handling of public assets (after deducting expenses) must be remitted to the state budget.
  • Science and technology assets: The management and use of assets arising from science and technology tasks must comply with relevant laws on science, technology, and intellectual property.

9. Transitional Provisions

  • Bidding: Bid packages for which documents were issued before July 1, 2025, but have not been closed, may continue under the old law or be adjusted to comply with the new law.
  • PPP: PPP projects not yet submitted for approval before the effective date must comply with the new provisions.
  • Customs: Import-export goods on customs declarations not completed before July 1, 2025, must comply with the new regulations.
  • Investment: Projects submitted before July 1, 2025, but not yet processed, will be transferred to provincial-level People’s Committees for resolution under the new delegated authority.

This law was passed by the National Assembly on June 25, 2025, aiming to simplify procedures, enhance investment efficiency, and promote science, technology, and digital transformation, while ensuring transparency and fairness in bidding and investment activities.

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