Navigating Vietnam's Administrative Reforms: Legal Implications and Support Services

On 11^th April 2025, the 11th plenum of the 13th Party Central Committee has ended with a landmark approval on administrative overhaul in Vietnam, which will consolidate the country's 63 localities into 6 cities and 28 provinces, represent a fundamental shift in the administrative structure and will necessitate careful consideration from all enterprises operating in Vietnam.

The 11th Plenum of the 13th Party Central Committee was held from April 10 to April 12, 2025, in the capital city of Hanoi (Source: baochinhphu.vn).

During the closing session, Party General Secretary To Lam highlighted that several members suggested that the Politburo recognize the session as historically significant, marked by decisive actions for Vietnam's next stage of development.

At ALTAS, we understand that such sweeping changes can create both opportunities and challenges. While these reforms aim to streamline administration and boost efficiency in the long term, the transition period is likely to present various legal and logistical hurdles. It is crucial for businesses to proactively address these implications to ensure continued compliance and minimize disruption to their operations.

Key Legal Implications for Enterprises:

The administrative reforms will likely impact businesses in the following key areas:

• Licensing and Permitting: Existing licenses and permits issued by the affected localities may need to be re-registered, renewed, or amended to reflect the new administrative boundaries. This could involve navigating new procedures and requirements, potentially causing delays and additional costs.

• Contractual Obligations: Contracts referencing specific localities may need to be reviewed and amended to ensure clarity and enforceability under the new administrative structure. This is particularly critical for long-term contracts involving property, land use, or ongoing service provision.

• Regulatory Compliance: Local regulations, tax regimes, and reporting obligations may be subject to change. Businesses must stay informed and adapt their compliance practices accordingly to avoid penalties and legal disputes.

• Corporate Structure and Governance: Companies with branch offices or subsidiaries in the affected areas may need to adjust their internal structure, governance policies, and reporting lines to align with the new administrative divisions.

• Dispute Resolution: The jurisdiction for legal disputes may change, requiring businesses to familiarize themselves with new court systems and procedures.

How ALTAS Can Assist You:

ALTAS LAW is uniquely positioned to assist your business in navigating these complex administrative reforms. We offer a comprehensive suite of legal and business services designed to provide seamless support during this transition period:

• Accounting and Tax Services: We also offer accounting and tax services to help your business manage the financial implications of these reforms, including tax planning, reporting, and compliance.

• Licensing & Regulatory Compliance: We will meticulously review your existing licenses and permits, advise on necessary amendments or renewals, and guide you through the process of obtaining any new approvals. Our team will also ensure your compliance with all relevant regulatory changes.

• Contract Review & Amendment: We will review your key contracts to identify potential risks and ensure they remain valid and enforceable under the new administrative structure. We will draft necessary amendments to protect your interests and maintain business continuity.

• Corporate Restructuring Advisory: We will advise on any required adjustments to your corporate structure and governance, ensuring efficient operations and compliance with corporate law.

• Dispute Resolution Services: Our experienced litigators are prepared to represent your interests in any disputes arising from the administrative reforms, providing effective and strategic legal counsel.

Our Commitment:

ALTAS LAW is committed to providing proactive and tailored legal solutions to help your business thrive in the face of these administrative changes. We combine our deep understanding of Vietnamese law with a client-centric approach, ensuring you receive the highest quality legal and business support.

Please feel free to reach us via email contact@altas.vn to discuss your specific concerns and explore how we can partner with you to navigate these reforms successfully.