Vietnam passes key amendments to streamline trade and customs rules

• Vietnam National Assembly ratified the Law on Amendments, which amends and supplements several laws including Customs Law, Law on Value Added Tax and the Export and Import Duties Law.
• Key changes include clarifying on-the-spot (OTS) import and export definitions to remove regulatory barriers and create eligibility for a 0% VAT rate on OTS-exported goods.
• The law also simplifies the criteria for Authorized Economic Operators (AEO) status for technology-driven enterprises.
• In addition, the law introduces customs exemptions for goods supporting science and technology industries.
• The Law on Amendments takes effect from 1 July 2025.

On 25 June 2025, Vietnam National Assembly ratified the Law on Amendments, which amends and supplements several laws, including the Customs Law, Law on Valued Added Tax, and the Export and Import Duties Law.

OTS import and export transactions

Clarification of OTS import and export

The Law on Amendments clarifies the definition of OTS import and export as "goods delivered and received in Vietnam as designated by a foreign trader under contracts for sale, processing, leasing, or borrowing between Vietnamese enterprises and a foreign trader." A significant change is the removal of the previous requirement that a foreign trader must have no presence in Vietnam, as stipulated in Decree No. 08/2015/ND-CP, providing specific provisions and guidance on enforcement of the Customs Law, dated 21 January 2015.

This change is expected to alleviate current challenges related to Value Added Tax (VAT) refunds for exports and enhance operational efficiency for enterprises.

VAT treatment

Under this Law on Amendments, OTS-exported goods are now eligible for a 0% VAT rate.

Authorized Economic Operators (AEO) status

Simplified criteria for technology and innovation-driven industries

To qualify for AEO status, enterprises must meet six criteria. The enterprise must:

• Comply with customs and tax laws for two consecutive years
• Have annual import and export turnover that meets the prescribed threshold
• Implement electronic customs and tax procedures — have an IT system for managing import-export activities that is connected to the customs authority
• Make payments through banking channels
• Have an internal control system in place
• Comply with accounting and auditing regulations

For technology and innovation-driven enterprises, the Law on Amendments removes the first two criteria, allowing these businesses to obtain AEO status from the start of their operations rather than requiring two years of compliance history.

These technology and innovation-driven enterprises include:

• High-tech enterprises
• Newly established enterprises from investment projects producing high-tech products
• Enterprises implementing strategic technology projects
• Enterprises engaged in key digital technology product manufacturing projects; R&D, design, production, packaging and testing of semiconductor chips projects; and the artificial intelligence data center construction project
• Enterprises implementing projects to produce supporting products that directly serve the semiconductor industry

AEO mutual recognition

The Law on Amendments recognizes AEO certifications from countries or territories that have signed a Mutual Recognition Agreement (MRA) with Vietnam, fostering international cooperation.

Customs incentives for technology and innovation-driven industries

The Law on Amendments introduces customs exemptions for goods imported to support science, technology, innovation and the digital technology industry. Eligible goods include:

• Imported machinery, equipment, spare parts, specialized materials, documents and scientific publications used directly for these industries
• Imported goods used to form fixed assets of investment projects
• Imported raw materials, supplies, and components for production or research purposes of high-tech enterprises, science and technology enterprises and innovation centers (these goods are exempt from import duties for five years from the commencement of research or production)
• Imported raw materials, supplies, and components that are not yet domestically produced and are used directly for the production of digital technology; or used for research and pilot production by research and development centers

Effective date

This Decree will become effective from 1 July 2025. During the transitional period, customs inspection and supervision provisions for OTS goods under the Law on Amendments will apply to OTS customs declarations registered but not yet cleared before the effective date.

Implications

Businesses should consider promptly assessing their operating models, supply chains and compliance frameworks to determine eligibility and prepare for the implementation of these changes.