NEW LAWS AND POLICIES EFFECTIVE FROM JANUARY 2025

LAWS EFFECTIVE FROM JANUARY 2025 

Road Traffic Order and Safety Law No. 36/2024/QH15 

The Road Traffic Order and Safety Law and its guiding documents come into effect on January 1, 2025, introducing a series of new traffic regulations, such as: 

• Changes in driver’s license classifications. 

• Each driver’s license will have 12 points. 

• Changes in the validity period of driver’s licenses. 

• Adjustments to the mandatory vehicle lighting hours. 

• Increase in the maximum age for drivers. 

• Mandatory emissions testing for motorcycles and mopeds. 

Notably, according to Article 58 of the Road Traffic Order and Safety Law No. 36/2024/QH15, each driver's license will have 12 points. Violations by drivers will result in point deductions based on the severity of the violation. These deductions will be updated in the database after the penalty decision takes effect and will be notified to the license holder. 

If all points are deducted, the driver will not be allowed to operate vehicles corresponding to the license type. After at least six months from the date of complete point deduction, drivers can retake the traffic law knowledge test to restore their license with 12 points. Licenses with remaining points will also be fully restored to 12 points if no further deductions occur within 12 months from the last deduction. 

Revised Asset Auction Law No. 37/2024/QH15 

The 2024 Revised Asset Auction Law introduces changes, such as: adjustments to auctioned assets; new cases of prohibition in auctions; revised regulations on auctioneers and auctioneer training; additional provisions for unsuccessful auctions; new rules on deposit requirements and deposit handling in auctions. 

A significant update in the 2024 Revised Asset Auction Law is the introduction of online auctions. According to Clause 28, Article 1 of the revised law, online auctions will be conducted on the National Asset Auction Portal/Online Auction Information Site, with steps as follows: 

1. Public announcement of the auction. 

2. Registration, submission of participation documents, payment of deposits, and viewing of auctioned assets. 

3. Assigning auctioneers to preside over the auction. 

4. Publishing auction results on the website and notifying participants via email. 

Capital Law No. 39/2024/QH15 

Compared to the 2012 Capital Law, the 2024 Capital Law introduces a new chapter on urban government organization, codifying provisions previously outlined in the Resolutions of the People’s Council. The goal is to improve the legal framework, establish exceptional and superior mechanisms, and address challenges arising during the implementation of the Capital Law. The aim is to develop Hanoi into a smart, modern, green, clean, safe, and sustainable city that promotes regional and national development. 

People’s Court Organization Law No. 34/2024/QH15 

The 2024 People’s Court Organization Law includes new provisions, such as: reforms in the organization of People’s Courts; prohibiting individuals under 16 from entering courtrooms, except when summoned; policies and regimes for judges. 

Judges reappointed after their first term will serve until retirement. Article 15 specifies that the initial term for judges is five years from the appointment date. Upon reappointment, judges will serve until retirement or reassignment without requiring an exam. If they fail to meet reappointment conditions, they will be reassigned other duties within the court system. 

Road Law 2024 

Key updates in the 2024 Road Law include: inclusion of "village roads" under the rural road system, managed by local authorities; eequirement for rest stops and bus stations to have electric vehicle charging systems; implementation of electronic payments for road transportation. 

Law on the Management and Use of Weapons, Explosives, and Support Tools 2024 

On June 29, 2024, the National Assembly officially passed the Law on the Management and Use of Weapons, Explosives, and Support Tools 2024, replacing the 2017 version.   

According to Clause 4, Article 2 of the 2024 Law, high-lethality knives intended for use in committing crimes, causing disturbances, disrupting public order, or resisting authorities and organizations carrying out official duties are classified as rudimentary weapons, except when considered military weapons. 

Amended Law on the Protection of Guards 2024 

The 2024 Amended Law on the Protection of Guards introduces several new provisions, including: adding new positions to the list of individuals eligible for protective services; expanding protective measures for international visitors during their visits and work in Vietnam; introducing regulations on Special Protection Certificates. 

Revised Law on the Protection of National Defense Projects and Military Zones 2023 

Under the 2023 Law on the Management and Protection of National Defense Projects and Military Zones, households and individuals engaged in production and business activities and residing within areas affected by the management and protection of national defense projects and military zones are entitled to support policies outlined in Article 26. These include provisions for education, healthcare, labor, employment, production, business, and social welfare. 

Additionally, the law introduces new provisions such as:   

- Classifying high-lethality knives as rudimentary weapons.   

- Granting authorities the right to shoot down drones (flycams) without prior warning.   

- Expanding the categories of military-grade weapons. 

Law on the Judiciary for Juveniles 2024 

 Article 177 of the Juvenile Justice Law 2024 amends, supplements, and repeals certain chapters and articles of the 2015 Penal Code, which had been previously amended and supplemented under Law No. 12/2017/QH14, as follows:   

- Repeals Chapter XII.   

- Removes the term "judicial" in Point g, Clause 1, Article 134.   

Additionally, the Juvenile Justice Law 2024 also amends, supplements, and repeals certain chapters and articles of the 2015 Criminal Procedure Code, which had been revised under Law No. 02/2021/QH15 and Law No. 34/2024/QH15. 

Public Investment Law 2024 

On November 29, 2024, the National Assembly passed the Public Investment Law 2024, comprising 7 chapters and 103 articles. This includes the addition of one chapter, two new articles, and amendments to 65 articles from the existing law.   

According to the new provisions, public investment funds will be utilized in the following sectors and areas:   

- National defense.   

- Security and social order.   

- Education, training, and vocational education.   

- Science and technology.   

- Healthcare, population, and family.   

- Culture and information.   

- Broadcasting, television, and news agencies.   

- Sports and physical activities.   

- Environmental protection.   

- Economic activities.   

- Operations of state agencies, public service units, political organizations, and socio-political organizations.   

- Social welfare.   

- Other sectors and areas as prescribed by law. 

POLICIES EFFECTIVE FROM JANUARY 2025 

Reduction of 2% VAT for the First Half of 2025 

To continue alleviating difficulties for businesses and citizens, the National Assembly has approved a 2% reduction in the value-added tax (VAT) for the first six months of 2025. Specifically, Section 8 of Resolution 174/2024/QH15 states: 

“Continue to reduce the VAT rate by 2% for groups of goods and services specified in Point a, Section 1.1, Clause 1, Article 3 of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Economic Recovery and Development Program, applicable from January 1, 2025, to June 30, 2025.” 

Thus, the VAT reduction will be in effect from January 1, 2025, to June 30, 2025, as outlined in Resolution 174/2024/QH15. 

New Regulations on Residency for Individuals Without Permanent or Temporary Addresses 

Decree 154/2024/ND-CP, which provides detailed guidance on the Law on Residency, will officially take effect on January 10, 2025. This decree introduces new provisions on temporary and permanent residence registration. 

Notably, according to Article 4 of Decree 154/2024/ND-CP, the residency of individuals without permanent or temporary addresses is determined as follows: Individuals must declare residency information using the "Residence Information Change Declaration Form" and submit it online, in person, or via public postal services to the local residency registration authority at their current place of residence, as prescribed in Article 19 of the 2020 Law on Residency. 

Workers Without Labor Contracts Can Participate in Voluntary Occupational Accident Insurance Starting January 1, 2025 

Government Decree No. 143/2024/ND-CP establishes regulations for voluntary occupational accident insurance for workers without labor contracts. This decree takes effect on January 1, 2025. 

The decree outlines: The voluntary occupational accident insurance scheme (hereafter referred to as "voluntary accident insurance"); the Voluntary Occupational Accident Insurance Fund; procedures for registration, participation, and resolution of benefits; rights and responsibilities of social insurance agencies, state labor management authorities, and workers under the voluntary accident insurance framework.  

Eligible individuals include workers aged 15 and above who are not subject to mandatory occupational accident and disease insurance under social insurance policies and who voluntarily participate in this insurance scheme. 

Mobile Banking Apps Will No Longer Save Access Passwords from January 1, 2025 

Circular 50/2024/TT-NHNN, issued by the State Bank of Vietnam, governs safety and security in providing online banking services. This circular becomes effective on January 1, 2025. 

Article 8 of the circular specifies that mobile banking applications must not store secret access passwords. These passwords are defined as a string of characters used to verify a customer's access to the application or to confirm transaction requests.  

Furthermore, Point n, Clause 2, Article 18 of the circular requires customers using online banking services to promptly notify their bank in the following three situations: 

• Loss, theft, or damage of devices generating OTPs, SMS-receiving phones, or devices storing private keys for digital signatures. 

• Being deceived or suspecting fraud. 

• Being hacked or suspecting a cyberattack. 

Additionally, banks are obligated to inform customers of any incidents involving data breaches and to promptly report such incidents to the State Bank of Vietnam.