ADDRESSING THE GAP IN IMPLEMENTING REGULATIONS FOR AMENDED LAWS: KEY IMPLICATIONS FOR BUSINESSES AND INVESTORS IN VIETNAM
Regulatory gap arising from amended laws without updated implementing regulations
In recent years, Vietnam has undertaken significant legislative reforms, with several important statutes being amended or supplemented and taking effect from 1 January 2026 and throughout 2026.
However, a recurring issue in the legislative process is that amended laws may come into force before the corresponding implementing regulations are revised or issued, creating a temporary regulatory gap during the transitional period.
This situation may pose practical challenges for businesses and investors, particularly in highly regulated sectors such as investment, securities, insurance, and public finance, where implementing decrees and circulars play a critical role in clarifying compliance requirements, licensing procedures, and operational standards.
Without clear implementing guidance, companies may face uncertainties when determining the applicable legal framework for ongoing business activities, investment transactions, and regulatory compliance.
Government measures to address the regulatory gap
To ensure regulatory continuity and minimize disruptions to business operations, the Government has issued several resolutions allowing existing implementing regulations to remain in effect during the transitional period.
Specifically:
Resolution No. 31/NQ-CP dated 3 March 2026
This resolution announces that the Government’s decrees providing detailed guidance for the Law on Prices will continue to remain in effect until amended or replaced by new regulations.
Resolution No. 32/NQ-CP dated 3 March 2026
This resolution confirms the continued validity of decrees guiding the implementation of the Law on Insurance Business, ensuring that the regulatory framework governing insurance activities remains operational during the transitional period.
Resolution No. 10/2026/NĐ-CP dated 10 March 2026
This decree provides for the continued application of implementing regulations and specific measures governing the implementation of certain laws that have been amended or replaced, including:
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the Law on Investment
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the Law on Securities
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the Law on Employment
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the Law on Education
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the Law on Higher Education
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the Law on Vocational Education and Training
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the Law on Public Debt Management
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the Law on the State Budget
Under this decree, existing implementing regulations may continue to apply to the extent that they are not inconsistent with the amended laws, until new or revised regulations are issued.
Implications for businesses and investors
These Government measures play an important role in maintaining legal continuity and avoiding regulatory disruption during the transitional phase of legislative reforms.
For businesses and investors, the resolutions provide greater certainty by allowing the continued reliance on existing implementing regulations while the Government finalizes updated regulatory instruments.
Nevertheless, companies should remain mindful that the continued application of existing regulations is temporary in nature and subject to the condition that such regulations do not contradict the amended laws.
Practical considerations for companies during the transitional period
During this interim period, businesses and investors are advised to:
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continue applying existing implementing regulations where they remain consistent with the amended laws;
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closely monitor new decrees and circulars currently under development;
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conduct internal reviews of investment structures, regulatory compliance, and contractual arrangements to ensure alignment with evolving legal requirements.
Conclusion
The Government’s decision to allow the continued application of existing implementing regulations represents an important transitional mechanism to address regulatory gaps arising from newly amended laws.
This approach helps maintain regulatory stability and ensures that business and investment activities can continue without disruption while updated implementing regulations are being developed and issued.