Laws change rapidly; can businesses adapt quickly enough?

DNVN - This rapid policy change clearly demonstrates flexibility, but at the same time reflects the pressure for continuous adjustment, making it difficult for businesses if they do not have a dedicated department to monitor the policies.

According to Mr. Dau Anh Tuan, Deputy Secretary General and Head of the Legal Department of the Vietnam Federation of Commerce and Industry (VCCI), the Vietnamese business legal system in 2024 and the first months of 2025 witnessed unprecedented changes, with a series of laws, decrees, and circulars being issued consecutively to remove obstacles for businesses.

According to VCCI statistics, in 2024, Vietnam passed 31 laws – double the number from the previous year. The government issued 182 decrees, and ministries and agencies issued 629 circulars. Notably, at the 9th session of the National Assembly , scheduled to open in early May, up to 35 laws and resolutions will be discussed and passed – a massive volume.

A prominent trend is the "one law amends many laws" approach, with a streamlined process. This reflects a positive shift in policy response, enabling quick and timely resolution of practical obstacles for businesses.

"However, this approach also carries risks if the scope of amendments is too broad or lacks thorough preparation. Even the guiding decrees face difficulties due to the tight timeframe, putting significant pressure on businesses – especially small and medium-sized enterprises – to monitor, understand, and comply in a timely manner," Mr. Tuan stated.

Mr. Dau Anh Tuan - Deputy Secretary General and Head of the Legal Department of the Vietnam Federation of Commerce and Industry (VCCI).

Typically, the Law on Bidding, enacted in 2024, was amended during the National Assembly session in January 2025 and will be further amended in the upcoming May session to implement Resolution 57 of the Politburo on breakthroughs in science and technology development, innovation, and national digital transformation. The BT (build-transfer) contract model, previously eliminated, has also been reinstated in a recently passed law amending four existing laws.

This rapid policy change clearly demonstrates flexibility, but also reflects the pressure for constant adjustment, making it difficult for businesses without a dedicated department to monitor policy.

Also related to Resolution 57 of the Politburo, according to Mr. Tuan, this is a prime example – a document with new, detailed thinking, highly appreciated by the scientific community and businesses. Just a few months after its promulgation, the National Assembly promptly passed Resolution 193 to remove obstacles in implementation, without waiting for the Law on Science, Technology and Innovation to be completed.

According to Mr. Tuan, a major turning point in the law-making process is the adoption of the Law on the Promulgation of Legal Normative Documents (amended) at the extraordinary session in early 2025. This law significantly shortens the legislative process: instead of taking two years, many laws can now be drafted and passed in just 6-7 months. In particular, policies and laws are now developed in parallel, not sequentially as before. Laws focus on principles, while details are left to the Government and ministries to regulate through decrees and circulars.

The Deputy Secretary General of VCCI assessed that this new approach helps implementing agencies react more quickly, but if thorough consultation is lacking, it could have negative consequences for businesses and even the agencies that enacted the laws. Another important change is the significant reduction in the consultation period: from 60 days to 20 days. The pace of legal changes is so rapid that even VCCI – the agency closely monitoring policies – is having difficulty keeping up-to-date.

"Policy changes made without adequate consultation and multi-faceted consideration can easily lead to inappropriate regulations that negatively impact business operations. If businesses don't pay attention to or invest in monitoring policies, even a small change can cause significant losses," Mr. Tuan warned.

Based on the above, Mr. Tuan recommended that businesses need to strengthen their policy monitoring departments. Because changes in policies, if not grasped in a timely manner, can cause significant damage to businesses, no less than the risks from the market.

The rapid transition from Party resolutions to legal regulations reflects decisiveness and innovation in policy management. However, legal reforms still need to be more substantive and equitable across ministries and agencies. Alongside institutional reform efforts, special attention should be paid to the quality of the law-making process, strengthening consultation, transparency, and ensuring reasonable transition periods to allow businesses to adapt and implement effectively.

Nguyet Minh

Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/luat-thay-doi-nhanh-doanh-nghiep-lieu-xoay-kip/20250503104415089