In a decisive move to align national regulations with global non-proliferation standards, the Government of Vietnam has promulgated Decree No. 259/2025/NĐ-CP on strategic trade control. The Decree establishes a comprehensive legal framework governing the export, temporary import for re-export, transshipment, cross-border trade, and transit of strategic goods — a term encompassing weapons of mass destruction (WMD), conventional weapons, and dual-use items capable of contributing to the production or deployment of such weapons.
This marks a significant evolution in Vietnam’s approach to strategic trade, reflecting its commitment to both national security and the international obligations arising from frameworks such as the United Nations Security Council Resolutions on non-proliferation and the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies.
At the core of the Decree lies the recognition that dual-use items, while primarily serving civilian purposes, may also be exploited for military or WMD-related applications. Accordingly, the Decree mandates that all strategic goods must comply not only with its own provisions but also with the broader body of laws on foreign trade management, commerce, taxation, customs, and sectoral regulations. This integrated approach ensures coherence between trade facilitation and strategic oversight, mitigating the risk of regulatory fragmentation.
Under Article 7, traders engaging in the export, temporary import for re-export, or transshipment of dual-use goods are required to obtain a specific license from the Ministry of Industry and Trade (MoIT), unless the transaction serves verified national defense or security purposes. Furthermore, even where goods are not explicitly classified as dual-use, a license will be mandatory if there is reasonable suspicion that the transaction may contribute to WMD proliferation, or if the end-user is identified among restricted or sanctioned entities. This “catch-all” provision effectively closes potential loopholes, granting MoIT broad discretionary authority to intervene where national or international security concerns arise.
The Decree also authorizes MoIT to extend licensing requirements to goods not explicitly listed under the primary classification, where necessary to fulfill Vietnam’s international commitments or bilateral cooperation agreements. This measure reinforces the Government’s proactive stance in ensuring that strategic trade activities remain consistent with its treaty obligations and cooperative security frameworks.
For enterprises operating in sectors that may involve dual-use technologies — such as advanced materials, electronics, biotechnology, or aerospace — the Decree introduces an important compliance mechanism: the Internal Compliance Program (ICP). Businesses are encouraged to adopt an ICP encompassing clear internal procedures, accountability structures, and verification mechanisms for end-users and end-uses. The ICP should also provide for periodic legal updates, staff training, record-keeping, and reporting obligations.
Enterprises maintaining an ICP for at least two consecutive years and obtaining MoIT certification will be eligible for facilitated licensing, including potentially extended license validity periods. This incentive-based approach mirrors international best practices, fostering a culture of self-regulation and compliance readiness among private-sector actors while easing administrative burdens on regulators.
Beyond its commercial implications, Decree 259/2025/NĐ-CP is a strategic instrument of state security. It requires traders to promptly notify authorities upon identifying or suspecting that exported goods are being diverted toward WMD development or related purposes. Such provisions enhance the early-warning and preventive capabilities of the Vietnamese regulatory system, enabling more effective inter-agency coordination between the MoIT, the Ministry of Public Security, and the Ministry of National Defense.
By clearly delineating licensing thresholds, end-use controls, and corporate compliance expectations, the Decree establishes a legal environment that is simultaneously open to legitimate trade and vigilant against proliferation risks. It aligns Vietnam more closely with global non-proliferation regimes and strengthens its position as a responsible member of the international trading community.
For businesses, particularly those involved in high-technology manufacturing or export of complex industrial goods, the new framework introduces both compliance responsibilities and reputational opportunities. Firms demonstrating adherence to ICP standards and proactive engagement with strategic trade regulations will likely enjoy smoother regulatory relations and enhanced trust from international partners.
In conclusion, Decree No. 259/2025/NĐ-CP signifies a critical milestone in Vietnam’s regulatory modernization. It bridges the divide between trade liberalization and national security imperatives, advancing both transparency and strategic control. As the global landscape of dual-use technology continues to expand, this legal reform positions Vietnam as a state capable of balancing economic integration with robust export governance, ensuring that its trade policy remains both secure and globally respected.
Prepared by Lexora Partner – Legal & Policy Insight Division
https://lexorapartner.com.vn
