LEGAL UPDATE REPORT: INSTRUMENTS AND POLICIES TAKING EFFECT FROM 1 JULY 2026

I. General Assessment

From 1 July 2026, a series of laws, replacing laws, and implementing Decrees simultaneously take effect — spanning salary, pensions, allowances, tax, public employees, construction, e-commerce, digital transformation, the press, cybersecurity, population, disease prevention, anti-narcotics, enforcement of judgments, judicial assistance, extradition, states of emergency, and special mechanisms for the capital city.

The most noteworthy aspect lies not in any single instrument but in the fact that multiple pillars of state governance are being replaced at the same time: the civil service and public-employee regime; income and insurance policy; tax administration; data governance and digital transformation; the press and cybersecurity; construction and investment; and the special mechanisms for Hanoi. This is the type of moment at which agencies, enterprises, public service units, and individuals are most at risk if they check each issue in isolation rather than updating comprehensively.

Note on scope: The review focuses on central-level instruments and certain local policies with broad impact, particularly those affecting Hanoi. Local instruments, specialised Circulars, and internal documents are still being issued in the final days of June 2026 — this article reflects the principal picture as at 1 July 2026, not an exhaustive catalogue.

II. Detail by Policy Group

1. Salary, Social Insurance, and Allowances

From 1 July 2026, the base salary increases pursuant to Decree 161/2026/NĐ-CP — the reference figure for calculating salaries in the state sector, allowances, and numerous related entitlements. At the same time, Decree 162/2026/NĐ-CP increases pensions and social insurance allowances, together with a mechanism for raising the floor for recipients who began receiving benefits before 1 January 1995.

• Base salary: VND 2,340,000 → VND 2,530,000 per month
• Pensions · social insurance allowances: increase of 8%
• Social insurance contribution ceiling: VND 46,800,000 → VND 50,600,000 per month

For pension/allowance recipients prior to 1 January 1995: if, after the 8% increase, the amount remains ≤ VND 3,500,000 per month → an additional VND 300,000 per month is added; if the amount falls between VND 3,500,000 and VND 3,800,000 → it is raised to VND 3,800,000 per month. Allowances calculated by reference to the base salary increase proportionately — for example, the one-off childbirth allowance: VND 4,680,000 → VND 5,060,000 per child; the funeral allowance: VND 23,400,000 → VND 25,300,000. Circular 66/2026/TT-BTC provides guidance on funding sources and payment methods, replacing Circular 62/2024/TT-BTC.

Practical impact: Enterprises with high-income employees must immediately update their payroll software, employment contract annexes, and insurance declaration data to reflect the new ceiling, in order to avoid under-contributions or retrospective recovery. Agencies and public service units must review their budget estimates and expenditure sources to cover the additional amounts.

2. Public Employees and Public Service Units

The Law on Public Employees 2025 replaces the Law on Public Employees 2010, shifting the focus from “established posts” in the traditional sense to management based on job positions, competency, and employment contracts. Four implementing Decrees were issued simultaneously on 26 June 2026 and take effect from 1 July 2026:

• Decree 232/2026/NĐ-CP — job positions for public employees, establishing 5 professional grades (grades 1–5) linked to salary groups B, A0, A1, A2.1, and A3.1.
• Decree 233/2026/NĐ-CP — assessment and quality classification of public service units and public employees.
• Decree 234/2026/NĐ-CP — disciplinary handling of public employees.
• Decree 235/2026/NĐ-CP — task-performance contracts within public service units.

Practical impact: Schools, public hospitals, and scientific, cultural, and media public service units must review their job-position schemes, professional title standards, and assessment regulations during Q3 2026. With respect to task-performance contracts, the risk to avoid is using this form to conceal a regular employment relationship or to circumvent insurance and tax obligations.

3. Tax, Finance, and Accounting

The Law on Personal Income Tax 2025 and the Law on Tax Administration 2025 both take effect from 1 July 2026 — with the provisions on income from business activities, salaries, and wages of resident individuals applying from the 2026 tax year.

The new Law adds categories of tax-exempt income: first-time transfer of carbon credits, emission-reduction outcomes; interest on green bonds; income associated with science and technology tasks and innovation; copyright from the commercialisation of research results; and certain types of income within the start-up innovation ecosystem. The Law on Tax Administration 2025 moves decisively towards management by data, risk, and electronic invoices and vouchers.

Practical impact: Enterprises must update withholding templates, classify taxable/exempt income, and maintain supporting documentation for special items. Because tax administration is now data-driven, consistency among invoices, cash flows, contracts, tax returns, and accounting records has become a mandatory requirement, not an option.

4. Electronic Employment Contracts

Pursuant to the guidance in Circular 08/2026/TT-BNV and Decree 337/2025/NĐ-CP, electronic employment contracts enter their official implementation phase from 1 July 2026, with requirements relating to digital signatures, timestamps, identity verification, and data storage and retrieval capability.

Practical impact: Enterprises using electronic contracts must review four points: the legal capacity of the digital signing platform; evidence of the time of conclusion; the ability to prove the employee’s consent; and the integrity of the contract content in the event of a dispute.

5. Construction, Investment, and Real Estate

The Law on Construction 2025 replaces the Law on Construction 2014 (certain provisions took early effect from 1 January 2026, with the majority taking effect from 1 July 2026). The most practically significant point: the scope of detached residential buildings exempt from a construction permit is expanded to cover buildings of fewer than 7 storeys with a total floor area of less than 500 m², subject to statutory conditions.

Decree 210/2026/NĐ-CP (issued 15 June 2026) provides detailed regulations on construction contracts, taking effect from 1 July 2026.

Practical impact: Investment dossiers, renovation works, and changes of land use purpose linked to construction must have their permitting/permit-exemption procedures re-checked. Parties to EPC, construction, consultancy, and supervision contracts must update their clauses on pricing, price adjustment, acceptance, penalties for breach, and dispute resolution under the new framework.

6. Digital Transformation, E-Commerce, Cybersecurity, and the Press

Four laws take effect simultaneously from 1 July 2026, restructuring virtually the entire legal framework governing cyberspace and the media:

• Law on Digital Transformation 2025 — replaces the Law on Information Technology 2006; governs digital government, the digital economy, and digital society.
• Law on E-Commerce 2025 — responsibilities of exchanges, platforms, cross-border e-commerce, and support services.
• Law on Cybersecurity 2025 — consolidates the Law on Network Information Security 2015 and the Law on Cybersecurity 2018.
• Law on the Press 2025 — replaces the Law on the Press 2016, together with implementing Decrees: 237/2026/NĐ-CP (implementation), 242/2026/NĐ-CP (broadcasting and television), 244/2026/NĐ-CP (statements and provision of information to the press by administrative agencies).

Practical impact: E-commerce platforms, platforms with transaction functions, logistics units, and payment intermediaries must review their obligations regarding seller identification, consumer protection, and data storage. Enterprises with user data systems must update their privacy policies and incident response procedures. Administrative agencies may no longer arbitrarily remain silent or make statements beyond their authority in matters attracting public attention — including matters involving land law, complaints, and denunciations.

7. Population, Healthcare, and Social Welfare

The Law on Population 2025 adds policies for additional maternity leave for female workers having a second child, paternity leave when a spouse gives birth to a second child or a third or subsequent child, together with certain financial support payments tied to specific population policy groups.

The Law on Disease Prevention 2025 replaces the Law on Prevention and Control of Infectious Diseases 2007 — the new name reflecting an expanded scope from reactive epidemic response to prevention, surveillance, and early intervention in public health generally.

Practical impact: The new maternity leave policy must be read together with the Labour Code and the Law on Social Insurance — the conditions for entitlement, funding sources, and procedures for each benefit may not coincide.

8. The Judiciary, Litigation and Procedure, Enforcement of Judgments, and Security and Public Order

A major cluster of laws takes effect simultaneously: Civil Judgment Enforcement 2025; Criminal Judgment Enforcement 2025; Enforcement of Pre-trial Detention, Custody, and Prohibition from Leaving Place of Residence 2025; Anti-Narcotics 2025; State of Emergency 2025; the Law Amending 10 Laws on Security and Public Order; together with laws on civil judicial assistance, criminal judicial assistance, extradition, and transfer of persons serving prison sentences.

Practical impact: The Law Amending the Law on Judicial Records transfers responsibility for state management of judicial records from the Ministry of Justice to the Ministry of Public Security, while also recognising the legal validity of electronic judicial record cards and shortening the time for their issuance — a point requiring immediate attention in matters involving foreign elements or urgent need for judicial records.

9. Complaints, Denunciations, Citizen Reception, and Anti-Corruption

The Law Amending the Law on Citizen Reception, the Law on Complaints, and the Law on Denunciations adds an online citizen reception mechanism. The Law Amending the Law on Anti-Corruption introduces the requirement to file a supplementary declaration when assets or income change by VND 1 billion or more.

Practical impact: This group of instruments must be kept in mind in administrative complaint proceedings, denunciations against officials, requests for citizen reception, asset declarations, and the handling of conflicts of interest — particularly with respect to the accountability of heads of agencies.

10. The Capital City of Hanoi and Low-Emission Zones

The Law on the Capital City 2026 provides for the position, role, and special powers of Hanoi in the construction, development, management, and protection of the capital — centred on financial and investment mechanisms, land law, science and technology, urban affairs, the environment, and administrative sanctions in certain fields. A number of resolutions of the Hanoi People’s Council are being issued to give concrete effect to the new law.

The Low-Emission Zone Scheme within Ring Road 1 has been approved with a 3-phase roadmap. Resolution 47/2024/NQ-HĐND on low-emission zones took effect from 1 January 2025; specific implementation by phase continues to be updated throughout 2026.

Practical impact: Specific prohibitions and restrictions by route, area, vehicle type, and time of day must be checked directly against the city’s resolutions, decisions, and implementation plans — not inferred from the framework policy.

11. Consolidation of Normative Legal Instruments

Ordinance 01/2026/UBTVQH16 amends and supplements the ordinance on consolidation of normative legal instruments. According to the Ministry of Justice, the most important new feature is that consolidated instruments become the official basis for citation and application — rather than serving merely as a technical reference as previously. The scope of consolidation is extended to local instruments, together with requirements for the application of artificial intelligence and digitalisation in consolidation work.

Practical impact: This is a technical change but one of great significance for lawyers, courts, and enterprises: if implemented as announced, citing consolidated instruments after 1 July 2026 will substantially reduce the risk of incorrectly citing an original instrument that has undergone multiple rounds of amendment.

III. List of 29 Laws Taking Effect from 1 July 2026

According to current legal compilations, 29 laws take effect from 1 July 2026:

IV. Recommended Immediate Actions from 1 July 2026

For enterprises: update salaries and the new social insurance contribution ceiling; review the personal income tax withholding process in light of the new exempt income categories; standardise electronic employment contracts; synchronise electronic invoices and vouchers with tax data; review internal data protection and cybersecurity policies.

For public service units: review job-position schemes pursuant to Decree 232/2026; update employment contracts and task-performance contracts; standardise regulations on assessment and quality classification of public employees; review disciplinary procedures for public employees; update budget estimates and expenditure sources for the salary increase.

For lawyers and legal departments: immediately update knowledge of the tax, construction, and e-commerce laws; master the digital transformation, press, and cybersecurity laws; review the cluster of laws on judgment enforcement, complaints and denunciations, and judicial records; verify the validity of consolidated instruments when citing them; cross-reference files currently being handled against the new legal bases.

For individuals: monitor changes to pensions and social insurance allowances; be aware of the population policy on maternity leave and financial support; update procedures for obtaining electronic judicial record cards; for Hanoi residents, monitor new regulations on transport and the environment.

V. Conclusion

What is required is not merely knowing which instruments have taken effect — but identifying what obligations, processes, dossiers, powers, and risks those instruments change from 1 July 2026.

Vietnam’s legal system is moving simultaneously on multiple axes — this is the moment for a comprehensive review, not for addressing each issue in isolation: salary – insurance – tax; public employees – public service units; construction – investment; data – digital transformation – cybersecurity; the press – official statements; the judiciary – enforcement of judgments; and the special mechanisms of the capital city of Hanoi.

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PSSLEGAL Law Firm — This document is for general information purposes only and does not substitute legal advice in respect of any specific matter.

Sources: Government Policy and Law Development Portal (xaydungchinhsach.chinhphu.vn); Government Portal (chinhphu.vn); Thu Vien Phap Luat; Hanoi City E-Portal; Ministry of Justice (moj.gov.vn).