On 12 June 2025, the Vietnamese Government issued Decree No.146/2025/ND-CP, officially launching a two-year pilot decentralization program within the industry and trade sector, effective from 1 July 2025. This move reflects the government’s broader effort to streamline administrative procedures, enhance local governance, and improve the investment environment, particularly for foreign-invested enterprises (FIEs).

Under this new framework, several regulatory powers previously held by the Ministry of Industry and Trade (MOIT)and other central ministries will now be delegated to provincial People’s Committees. The decentralization covers a wide range of areas within the industry and trade sector, including but not limited to::

• Licensing for trading and retail activities;
• Establishment and operation of foreign traders’ branches;
• E-commerce registrations and certifications;
• Approval of overseas trade promotion activities.

This policy shift is expected to help reduce licensing delays, promote localized decision-making, and facilitate easier market access—especially in the context of Vietnam’s growing participation in global supply chains.

However, decentralization also presents new challenges. Differences in interpretation and implementation at the local level may affect business certainty and consistency across provinces. Our legal alert highlights key changes, potential implications for FIEs and domestic companies, and practical steps to navigate this new regulatory landscape effectively.

Prepared by Ms. Hoang Nguyen Ha Quyen (Partner), Mr. Nguyen Duy Thanh and Ms. Ngo Thi Phuc Tam (Senior Associates)

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