Provisional steps made towards legislative reform

While Vietnam’s legal framework is broadly comprehensive, it continues to exhibit some areas of overlap and ambiguity, which contribute to inconsistent interpretations, which may limit innovation and the growth of entrepreneurial activity.

In practice, resolving these legal obstacles through the conventional legislative process is typically time-consuming. Specifically, any amendment to an existing law must follow a stringent and lengthy procedure, which includes being added to the NA’s legislative agenda and receiving formal approval from the NA – a process that typically takes one or two years.

This challenge is particularly pressing in the current context, as Vietnam is streamlining its administrative apparatus into a two-tier government model. This restructuring necessitates extensive revisions to existing legal documents to align with the new governance framework.

Additionally, the rollout of new laws in areas like digital data, AI, and cryptoassets highlights Vietnam’s intent to stay aligned with rapid technological change. However, the rapid evolution of these sectors often outpaces the legal system’s ability to respond through traditional channels.

This mismatch highlights the critical need for a fast-adaptive amendment mechanism, such as that introduced by Resolution 206, to ensure laws remain relevant, implementable, and supportive of innovation.

One of the most transformative provisions of Resolution 206 is that it empowers the government to issue resolutions that temporarily amend certain provisions of existing laws or the NA’s resolutions to address urgent issues, pending formal legislative updates.

That said, to ensure accountability and prevent misuse, the mechanism is subject to several constraints. Firstly, the government is only authorised to amend laws or resolutions that originate from its own proposals. Secondly, the government must report the issuance of its relevant resolutions to the NA. Thirdly, resolutions issued in accordance with Resolution 206 must expire no later than March 2027. Lastly, any resolutions issued must not regulate human rights, citizens’ rights, criminal offences, penalties, or judicial procedures asthese matters are inherently subject to the NA’s authority.

Under the fast-track mechanism introduced by Resolution 206, the adoption of a government resolution may be completed in as few as 18 working days. This represents the minimum timeline and does not include the period required to prepare the initial draft.

The expedited process involves several key legislative steps: consultation with relevant stakeholders under a minimum of three working days (optional); legal appraisal by the Ministry of Justice, to be completed within five working days from the date a complete draft resolution dossier is received; revision and submission to the government by the drafting agency, to be completed within five working days from the date the appraisal report is received; and the government must consider and approve the draft resolution within five working days from the date the complete submission is received.

Resolution 206 marks a pivotal shift in Vietnam’s legislative process, introducing a faster, more flexible mechanism to address legal bottlenecks during the ongoing state apparatus reorganisation. Although effective for only 20 months from June 24, it may set a precedent for long-term legislative reform.

In the coming months, the government is expected to issue a series of resolutions that temporarily amend existing laws to resolve urgent legal and operational challenges. Businesses should be prepared for rapid regulatory shifts, heightened compliance demands, and evolving administrative procedures.

This is a critical window to engage with policymakers, adapt compliance strategies, and position strategically within Vietnam’s transforming legal landscape.