On April 12, 2025, General Secretary To Lam signed Resolution No. 60-NQ/TW, marking a significant reform in Vietnam’s administrative system, with sweeping changes to administrative boundaries from commune to provincial levels. These adjustments, including division, merger, renaming, or upgrading of administrative units, will not only restructure state management but also create practical legal and operational implications for businesses, particularly in maintaining legal consistency and synchronization across internal records and external documents. In an online interview with the Voice of Ho Chi Minh City (VOH) on May 30, 2025, Managing Partner Nguyen Van Phuc of HM&P Law Firm (“HM&P”) offered legal insights and strategic recommendations for enterprises to navigate this transitional period effectively.
The administrative map of Vietnam after the reorganization shows a total of 34 provinces and centrally governed cities. Source: Vietnam Natural Resources and Environment Publishing House & Vietnam Map Publishing House.
According to Mr. Phuc, changes to administrative boundaries involve more than geographic shifts; they entail the realignment of key state agencies such as tax authorities, social insurance bodies, business registration offices, and other regulatory agencies. These institutional changes trigger a host of new legal obligations that businesses must promptly identify and address. For instance, legal documents including enterprise registration certificates, investment licenses, invoices, contracts, and company seals must be reviewed and updated in accordance with the new administrative units. Failure to do so may result in legal inconsistencies, disrupt relations with authorities and partners, and expose businesses to compliance risks.
Key legal implications for enterprises
The redrawing of administrative boundaries leads to the reallocation of supervisory authorities and regulatory responsibilities. Mr. Phuc highlights the following legal issues businesses must pay close attention to:
- Updating legal documents: Business addresses on enterprise registration certificates, investment certificates, work permits, invoices, seals, and other documents must be revised to ensure legal validity and consistency.
- Transitioning regulatory oversight: Companies will need to liaise with newly assigned agencies, reconcile records, transfer data, and ensure the continuity of administrative obligations.
- Changes to tax incentives and investment policies: Some enterprises may face shifts in investment incentive zones. However, under Official Dispatch No. 4525/BTC-CST dated April 9, 2025, tax incentives already recorded in investment certificates will remain effective.
- Local planning and policy impact: Adjustments in urban planning, land use, or investment attraction policies could influence business plans, market expansion, and brand positioning.
What should businesses do?
In the interview, Mr. Phuc recommended several immediate actions for enterprises:
- Monitor official updates from the National Assembly, Government, and local People's Committees to stay informed of the boundary adjustment roadmap.
- Review all legal documents and records from licenses and contracts to physical materials such as packaging, signage, and business cards for necessary updates.
- Reassess business strategies in light of new planning zones, including office and branch locations, tax and investment policies, and potential regulatory risks.
- Enhance internal communication and public updates, including staff training, partner notifications, and updates to websites, accounting systems, and tax records, to ensure full compliance across all platforms.
- Apply technology and digitization to streamline the updating of addresses, contracts, and corporate documentation, reducing processing time and minimizing errors.
The National Assembly passed a Resolution on the reorganization of provincial-level administrative units, effective from June 12. Source: The National Assembly.
Turning legal challenges into strategic opportunities
Despite the complexity of administrative adjustments, Mr. Phuc emphasized that this period presents a timely opportunity for enterprises to re-evaluate operational structures and strategic directions. Merged or upgraded areas often benefit from new planning schemes and infrastructure investment, creating access to broader markets, improved logistics, and enhanced customer reach. This is also a chance for companies to strengthen governance, enhance compliance, and integrate technology more deeply into operations. With proactive adaptation and close cooperation with authorities, businesses can turn administrative transitions into long-term growth opportunities.
As Vietnam undergoes widespread administrative reorganization, timely and strategic preparedness will help businesses maintain operational stability, mitigate legal risks, and leverage restructuring opportunities aligned with national development goals. This is a pivotal moment for enterprises to conduct a comprehensive review, reinforce internal systems, and adapt to a transforming regulatory landscape. Backed by in-depth legal expertise and practical experience, HM&P is committed to supporting businesses in effectively managing legal updates and formulating strategies that align with new administrative units, ensuring continuity and long-term sustainability in their operations.
Read more: Thay đổi địa giới hành chính, doanh nghiệp cần sớm cập nhật thông tin để hoạt động được thuận lợi
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