Business Impacts of the 2025 Provincial Restructuring

Since 1 July 2025, Vietnam has officially operated under a new structure of provincial-level administrative units, following Resolution No. 202/2025/QH15 on the restructuring of provincial-level administrative units and the implementation of a two-tier local government model (provincial level and grassroots level).

According to Resolution 202, Vietnam now comprises 34 provincial-level administrative units, including 28 provinces and 6 centrally governed cities. Of these, 19 provinces and 4 cities were formed through mergers and consolidations, while the remaining 11 provinces and cities remained unchanged.

This restructuring has several important implications for enterprises, particularly concerning administrative procedures and boundaries.

Changes to registered addresses. The adjustment of administrative boundaries directly affects the registered addresses stated in enterprises’ legal documents, such as the Enterprise Registration Certificate, Investment Registration Certificate, company seals, signage, invoices, and product labels. As clarified by the Ministry of Finance in Official Letter No. 4370/BTC-DNTN dated 5 April 2025, enterprises are not required to immediately update their registered address solely because of the State’s boundary changes, and previously issued certificates remain valid. Enterprises may update their address at a convenient time or in conjunction with other business registration changes. However, it is advisable that enterprises proactively update their address soon to ensure consistency across all business documents, seals, and materials, thereby minimizing confusion and avoiding operational disruptions.

Changes in administrative procedure contact points. With the new administrative structure, many provincial-level government agencies such as the Departments of Industry and Trade, Construction, Finance, Agriculture and Environment, and Home Affairs have been reorganized to reflect the new boundaries. As a result, enterprises may now need to interact with newly designated agencies, which may involve changes in contact points, practices, and processing timelines. In this early phase, local authorities are still finalizing their internal arrangements and managing an increased workload, which may lead to delays in administrative procedures.

Recommendations for enterprises. Although the newly formed provincial and city governments officially commenced operations on 1 July 2025, detailed surveys and final demarcations of boundaries in some areas are still underway. This transitional period may pose challenges for enterprises seeking to update their records in line with the new boundaries. Enterprises are encouraged to carefully review how the new administrative map affects their operations, monitor official updates from local authorities, and prepare plans to adjust legal documents, signage, seals, invoices, and product labels to ensure compliance and smooth business operations.