Business Conditions in Vietnam: What Resolution 19 Changes in 2026
Vietnam is continuing to simplify its regulatory environment for businesses. One of the latest developments is Resolution No. 19/2026/NQ-CP, which introduces reductions, decentralisation and simplification of administrative procedures and business conditions under the management of the Ministry of Industry and Trade.
For foreign investors, the reform can affect how certain licences, approvals and administrative procedures are handled. However, simplification does not mean that businesses can ignore sector-specific requirements. Companies still need to determine which rules apply to their actual activities before entering the Vietnamese market or expanding an existing operation.
Quick Answer
Resolution 19/2026/NQ-CP simplifies business conditions in Vietnam across sectors managed by the Ministry of Industry and Trade. The reform covers areas such as chemicals, electricity, petroleum, tobacco, e-commerce, import-export, international trade, trade promotion and commodity exchanges.
The Resolution took effect on April 29, 2026, while its provisions on decentralised administrative procedures became effective 30 days later. Relevant ministries and authorities are expected to issue or amend implementing regulations so that the new framework is fully reflected before March 1, 2027. For businesses, the practical takeaway is simple: do not assume that an old licensing procedure or document checklist still applies to a new project.
What Is Resolution 19/2026/NQ-CP?
Resolution No. 19/2026/NQ-CP was issued by the Government of Vietnam on April 29, 2026. Its purpose is to reduce, decentralise and simplify administrative procedures and business conditions within the regulatory scope of the Ministry of Industry and Trade.
The reform follows three main directions: decentralising certain administrative procedures to competent authorities closer to businesses, reducing business conditions considered unnecessary or no longer suitable, and simplifying administrative procedures and documentation where government databases already contain the required information. These measures form part of Vietnam's broader effort to streamline its business environment and expand the use of digital government data.
Which Business Sectors Are Affected?
Resolution 19 is relevant to a wide range of industries regulated by the Ministry of Industry and Trade. Major areas include chemicals, electricity, petroleum, tobacco, e-commerce, import-export, international trade, trade promotion, commodity exchanges and local industry.
Area | Why Businesses Should Review It |
Chemicals | Licensing, safety and chemical-related administrative requirements may change |
Electricity | Certain procedures and operating conditions are being streamlined |
Petroleum | Business conditions and administrative procedures are being reduced or simplified |
Tobacco | Licensing and regulatory procedures remain important despite simplification |
E-commerce | Foreign-invested and digital businesses should review applicable licensing procedures |
Import and export | Certain administrative procedures are subject to simplification |
International trade | Companies conducting cross-border commercial activities may be affected |
Trade promotion | Approval and notification procedures may change |
Commodity exchanges | Businesses should review licensing and operating requirements |
Local industry | Certain administrative responsibilities are being decentralised |
The impact is therefore broader than traditional manufacturing or trading businesses. Technology companies, foreign retailers, importers, distributors and e-commerce businesses may also need to review whether the new framework affects their planned or existing activities.
What Changes for Business Conditions in Vietnam?
Resolution 19 does not simply remove licences. Instead, it changes different parts of the regulatory process, including certain business conditions, administrative responsibilities and application requirements.
1. Some Business Conditions Are Reduced
Resolution 19 removes or simplifies certain conditions that businesses previously had to satisfy before or during operations. This can reduce unnecessary regulatory barriers, but companies should identify exactly which condition has been removed or modified.
For example, if one condition relating to an application is eliminated, other requirements relating to technical standards, personnel, facilities, foreign ownership or specialised licences may remain. A simplified business condition therefore does not necessarily mean that the activity has become completely unregulated. This distinction is particularly important for foreign-invested enterprises.
2. More Procedures Are Decentralised
Another important change is the transfer of responsibility for certain administrative procedures from central authorities to other competent authorities. For businesses, decentralisation can potentially make applications more accessible and reduce the need to work through central-level agencies.
However, companies should confirm the current competent authority before submitting an application. Using an outdated procedure guide may result in filing with the wrong authority, preparing unnecessary documents, following an outdated application sequence or miscalculating the processing timeline. This is particularly relevant for businesses entering regulated sectors in 2026 and 2027.
3. Application Documents Can Be Reduced
One of the practical principles introduced by Resolution 19 concerns information already available in government databases. Where authorities can obtain information from an available government database, applicants should not be required to repeatedly provide documents containing the same information.
This reflects Vietnam's broader transition toward digital administrative procedures and may gradually reduce duplicated paperwork for businesses. However, practical implementation will depend on the relevant database, procedure and implementing authority. Companies should therefore check the latest document checklist instead of automatically reusing documents from an earlier application.
4. Some Existing Licensing Procedures Are Simplified
Resolution 19 also contains changes to administrative procedures within individual industries. Depending on the activity, simplification can involve changes to application documents, the number of document sets, competent authorities, approval procedures, licensing conditions, reporting requirements or supporting information.
The practical impact will therefore differ from one business to another. A chemical company, for example, should not rely on the same compliance analysis as an e-commerce or retail business simply because both activities may fall within areas affected by Resolution 19.
Why Does Resolution 19 Matter to Foreign Investors?
Foreign investors normally face more than one regulatory layer when establishing or operating a company in Vietnam. A typical market-entry process may involve foreign market access → investment registration → enterprise registration → business conditions → sector-specific licences → operational compliance.
Resolution 19 mainly affects business conditions and administrative procedures within areas managed by the Ministry of Industry and Trade. It does not automatically remove other requirements. Depending on the project, a foreign investor may still need to review foreign ownership restrictions, Vietnam's international commitments, Investment Registration Certificate (IRC) requirements, Enterprise Registration Certificate (ERC) procedures, formal Business License requirements, sector-specific licences, product approvals, environmental requirements, fire prevention requirements, construction and premises requirements, labour compliance, and tax and accounting obligations.
For this reason, the key question is not simply whether Vietnam has removed a particular licence. Businesses should instead determine which requirement has changed and which requirements still apply to their exact activity.
Business Conditions and Foreign Market Access Are Different
This distinction is particularly important for international investors. A business activity may no longer be subject to a particular domestic business condition but can still be restricted for foreign investors.
Foreign market-access rules may impose requirements concerning maximum foreign ownership, permitted investment forms, investor qualifications, business scope, Vietnamese partners, sector-specific approvals or conditions under international agreements. Foreign investors should therefore conduct both a business-condition review and a foreign market-access review before establishing a company. Satisfying one does not automatically satisfy the other.
What About Business Licences for Foreign-Invested Companies?
Foreign-invested companies should also distinguish the general concept of business conditions from the formal Business License applicable to certain commercial activities. A company may already hold an Enterprise Registration Certificate and still need another licence before conducting specific activities.
This can be particularly relevant to businesses involved in retail distribution, certain goods trading activities, e-commerce services, commercial intermediary services, trade promotion services and other regulated commercial activities. Resolution 19 changes certain conditions and procedures within the Ministry of Industry and Trade's jurisdiction, but businesses should review the exact activity before concluding that a Business License or another approval is no longer required.
Example: Foreign E-Commerce Company Entering Vietnam
Consider a foreign investor planning to establish an e-commerce company in Vietnam. Because e-commerce falls within areas regulated by the Ministry of Industry and Trade, relevant administrative requirements should be reviewed under the updated regulatory framework.
However, the investor still needs to determine whether the company will simply sell its own products online or provide an e-commerce service to third-party sellers. It must also check foreign market-access conditions and determine whether a formal Business License or another approval is required. Depending on the business model, the company may additionally need to comply with e-commerce registration or notification procedures, consumer protection, personal data protection, cybersecurity, taxation and electronic invoicing requirements.
A simplified administrative procedure should therefore be treated as one part of the compliance analysis, rather than automatic permission to begin operations.
Example: Foreign Import and Distribution Company
Consider another foreign-invested company planning to import products and distribute them in Vietnam. The company should first separate its proposed activities into import, wholesale distribution, retail distribution, online sales and any related commercial services because each activity can create different regulatory requirements.
The company must also review whether the products themselves are regulated. Chemicals, food, cosmetics, medical products and certain specialised equipment may require additional approvals or compliance procedures. This is why defining the exact business model before incorporation is important when determining which business conditions in Vietnam apply to a foreign investor.
What Should Existing Companies Do?
Resolution 19 is not relevant only to new investors. Existing businesses operating in sectors managed by the Ministry of Industry and Trade should also review their current compliance procedures.
A practical review should answer five questions:
Has the authority handling our procedure changed? A decentralised procedure may now be handled by a different competent authority.
Has the application dossier changed? Documents previously required may have been removed, simplified or replaced.
Have any business conditions been eliminated? The company should identify whether requirements attached to its existing activity have changed.
Do our current licences remain necessary? Businesses should not cancel or stop maintaining an existing licence merely because the regulatory framework has changed.
Are new implementing regulations expected? Companies should continue monitoring sector-specific regulations as the new framework is implemented.
Practical Compliance Checklist for Foreign Investors
Before starting or expanding a business in Vietnam under the new framework, foreign investors should follow a structured compliance review.
Step 1 — Define the actual business activity. Clearly describe what the company will sell, provide, import, manufacture or operate.
Step 2 — Identify the relevant business codes. Determine which registered activities correspond to the proposed operations.
Step 3 — Check foreign market access. Confirm whether foreign investors may conduct the activity and whether ownership or investment conditions apply.
Step 4 — Review current business conditions. Check whether the activity remains conditional and identify the latest requirements.
Step 5 — Check Resolution 19. Determine whether the relevant Ministry of Industry and Trade procedure or business condition has been simplified, removed or decentralised.
Step 6 — Identify the competent authority. Confirm where the application should currently be submitted.
Step 7 — Update the document checklist. Do not automatically rely on a checklist prepared before the 2026 reforms.
Step 8 — Check additional licences. Determine whether a Business License, sector-specific licence, product approval or premises-related approval is still required.
Step 9 — Review operational compliance. Check tax, accounting, labour, environmental, data protection and other ongoing obligations.
Step 10 — Monitor implementation through 2027. Regulatory requirements may continue to develop as implementing rules are issued or amended.
What Resolution 19 Does Not Mean
Several misunderstandings should be avoided. First, Resolution 19 does not mean that all business licences in Vietnam have been abolished. It addresses specific business conditions and administrative procedures within its scope, while other regulatory requirements may continue to apply.
Second, it does not automatically remove foreign investment restrictions. Foreign market-access rules remain a separate consideration for international investors. Third, holding an ERC does not necessarily mean a company can immediately conduct every registered activity, as additional approvals may still be required depending on the sector and operating model.
Finally, simplification does not eliminate post-licensing compliance. A business may benefit from a simpler market-entry or licensing procedure while remaining subject to technical standards, reporting obligations, tax requirements and inspections during operations. For foreign investors, the reform should therefore be understood as a change in how certain compliance requirements are administered rather than the removal of compliance obligations altogether.
How VINEX Can Help
Vietnam's 2026 reforms may allow businesses to benefit from simpler market-entry and licensing procedures. At the same time, the transition between old and new requirements can make it difficult to determine which procedures still apply to a particular investment project.
VINEX supports foreign investors and foreign-invested enterprises with market-entry and business activity reviews, foreign ownership and market-access checks, company incorporation, IRC and ERC procedures, Business License applications, amendments to company and investment registrations, sector-specific licensing, import and trading compliance, post-licensing procedures, and ongoing corporate, accounting, tax and labour compliance.
Before preparing an application based on an older procedure, businesses should review whether the 2026 reforms have changed the competent authority, applicable conditions or required documents.
Frequently Asked Questions
What are business conditions in Vietnam?
Business conditions are legal requirements that companies must satisfy when conducting certain regulated activities. Depending on the sector, these may involve licences, professional qualifications, capital, facilities, personnel, technical standards or other operating requirements.
What is Resolution 19/2026/NQ-CP?
Resolution 19/2026/NQ-CP is a Government resolution issued on April 29, 2026 to reduce, decentralise and simplify certain administrative procedures and business conditions under the management of the Ministry of Industry and Trade.
Which sectors are affected by Resolution 19?
The reform covers multiple areas including chemicals, electricity, tobacco, petroleum, e-commerce, international trade, import-export, trade promotion, commodity exchanges and local industry.
Does Resolution 19 remove business licences in Vietnam?
Not generally. It removes or simplifies specific conditions and procedures within its scope. Companies must still check whether other licences, foreign market-access conditions or sector-specific requirements apply to their activities.
Does Resolution 19 apply to foreign investors?
Foreign-invested businesses operating in affected sectors may benefit from relevant procedural simplifications. However, foreign market-access restrictions and investment requirements remain separate considerations.
When did Resolution 19 take effect?
Resolution 19 took effect on April 29, 2026. Certain provisions concerning decentralisation became effective 30 days after the Resolution took effect.
Will the rules change again?
Further implementing regulations may be issued or amended as authorities implement the reform. Businesses should therefore check the latest sector-specific requirements when preparing a new application or reviewing an existing licence.
Final Takeaway
Resolution 19 is another step in Vietnam's broader effort to simplify its business environment. For investors, however, fewer administrative procedures should not be interpreted as fewer compliance responsibilities across the board.
The practical approach is to review each proposed activity individually: identify the applicable business conditions in Vietnam, check foreign market access, determine which procedures have changed under Resolution 19, and map the licences and post-licensing requirements that remain. For foreign investors entering or expanding in Vietnam in 2026 and 2027, using an up-to-date regulatory review before incorporation or expansion can help prevent reliance on outdated procedures.
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