A wave of significant new policies officially takes effect in July 2025, many of which stem from laws and resolutions passed by the National Assembly to support the two-tier local government system.

28 decrees redefine authority in two-tier local governance

The Government has issued 28 decrees regarding the decentralization and division of powers between the central government and local authorities, effective from July 1, 2025.

These include 11 decrees defining authority under the new local governance structure, 14 decrees on decentralization and delegation of authority, and 3 that encompass all aspects. Additionally, four supplementary decrees were developed to align the legal system comprehensively.

The decrees focus on transferring authority from central to local governments, shifting duties from district to provincial and commune-level governments, and stipulating new procedures when authority changes necessitate procedural modifications. This legal framework aims to streamline governance, enhance administrative efficiency, and ensure stable, transparent operation of the two-tier government model.

Commune-level chairpersons now authorized to issue land-use certificates

On June 12, the Government enacted Decree 151/2025/ND-CP on decentralizing authority in land management. As of July 1, commune-level chairpersons are empowered to issue land-use and property ownership certificates, previously managed at the district level.

This includes re-determining land area, issuing new certificates, and handling changes in land use, lease extensions, and pricing decisions based on local land valuation tables. Commune leaders are now responsible for issuing specific land prices under Article 155 of the Land Law.

Five groups now required to participate in compulsory social insurance

Decree 158/2025/ND-CP, effective July 1, outlines five groups subject to compulsory social insurance, including:

Employees as defined under Article 2 of the Social Insurance Law, including those studying or working abroad who continue receiving domestic salaries.

Business household owners with registered operations.

Individuals falling under multiple employee categories simultaneously.

Beneficiaries of monthly or lump-sum social insurance who are exempt from mandatory insurance.

Part-time employees with salaries below the mandatory insurance threshold, and those under probationary contracts are not covered.

New standards for public offices and workspaces

Decree 155/2025/ND-CP, also effective July 1, sets standards for workspace usage, including dedicated, shared, and specialized areas for officials. Appendices specify area allocations by position at both central and local levels.

Each commune allowed up to two government vehicles

Decree 153/2025/ND-CP introduces a cap of two shared-use government vehicles per commune. These vehicles, priced up to approximately $39,500 each, will serve officials such as party secretaries, council chairs, and people’s committee leaders, excluding use for commuting between home and office.

Larger multi-seat vehicles (12-16 seats) may cost up to $54,000, while specialized 4WD vehicles can go up to $66,000.

Reorganization of courts and procuracies into three levels

The revised Law on the Organization of the People's Courts restructures the court system into three levels: Supreme People's Court, provincial-level courts, and regional courts (replacing current district-level courts). The high-level courts are abolished.

Regional courts now handle all civil, administrative, and commercial cases previously under district courts.

Similarly, the People’s Procuracies have been consolidated into three levels, eliminating the high and district levels. The Supreme People’s Procuracy can now appoint up to 27 prosecutors, up from the previous cap of 19.

Healthcare access without administrative boundary restrictions

From July 1, amendments to the Health Insurance Law allow patients to receive care under the national health insurance program at any facility nationwide, regardless of their residential location.

Patients will receive 100% benefits for treatment at registered primary care centers and inpatient services at basic-level hospitals across the country. Special cases involving rare or critical illnesses can go directly to specialized medical centers.

Photo documentation required during notarization

Under the 2024 Notarization Law, effective July 1, notarization must be done in the presence of a notary and documented with photographs.

Photos must clearly capture the signer and the notary, be unedited, and printed on A4 or specialized photo paper (minimum size 13cm x 18cm). This applies to both signers and those using fingerprint confirmation.

Death penalty abolished for eight crimes

The amended Penal Code, effective July 1, eliminates the death penalty for eight offenses, including subversive activities, espionage, destruction of critical infrastructure, trafficking in counterfeit medicines, illegal drug transport, embezzlement, bribery, and acts of aggression or war.

Those previously sentenced to death for these crimes will have their sentences commuted to life imprisonment.

Tran Thuong