VIETNAM’S ECONOMIC SECTOR CLASSIFICATION SYSTEM (VSIC 2025)

The Vietnamese Standard Industrial Classification (VSIC) system plays a vital role in economic statistics, policy-making, and business registration. Since the issuance of Decision 27/2018/QĐ-TTg, VSIC has served as the official framework for classifying economic activities. However, with the emergence of new industries and the digital economy, Decision 36/2025/QĐ-TTg introduces key updates to better reflect Vietnam’s evolving economic landscape. This article provides a comparative analysis of the two decisions, highlighting the structural changes, innovations, and implications for businesses and regulatory bodies.

PART I: LEGAL CONTEXT AND CLASSIFICATION METHODOLOGY

1.1. The Strategic Importance of the Vietnam Standard Industrial Classification (VSIC)

The Vietnam Standard Industrial Classification (VSIC) is a foundational statistical classification tool that plays a pivotal role in macroeconomic management. The purpose of the VSIC is to ensure uniform application across all state statistical activities, including the collection, processing, and analysis of economic data. Furthermore, the system serves as the basis for the development of the national administrative registration system, national and sectoral databases, as well as for other state management activities.¹

The update from the 2018 to the 2025 version of the VSIC reflects the necessity of periodically restructuring statistical frameworks to keep pace with Vietnam’s economic evolution and transformation. The update cycle—approximately every 7 to 8 years (VSIC 2007, VSIC 2018², VSIC 2025)—ensures the classification system remains relevant, especially amid the rapid rise of new economic activities such as the digital economy, which require precise measurement and classification.

1.2. Legal Framework and Effective Date

The transition from VSIC 2018 to VSIC 2025 is explicitly defined under decisions of the Prime Minister. The previous system, the Vietnam Standard Industrial Classification 2018, was promulgated under Decision No. 27/2018/QD-TTg dated July 6, 2018, and took effect from August 20, 2018.²

Decision No. 36/2025/QD-TTg, issued on September 29, 2025, establishes the new Vietnam Standard Industrial Classification system, effective from November 15, 2025.¹ The key legal provision is that Decision No. 27/2018/QD-TTg shall cease to be effective as of the effective date of Decision No. 36/2025/QD-TTg.²

The transition period between promulgation (September 29, 2025) and effective implementation (November 15, 2025) is relatively short—less than 50 days. This narrow window imposes significant pressure on national statistical agencies, relevant ministries, and particularly the business community, to prepare their data infrastructure and operational systems for the transition. The accelerated replacement indicates that Decision No. 36/2025/QD-TTg seeks to urgently address deficiencies in the previous system—particularly in integrating and measuring modern economic activities that require immediate standardization.

1.3. Criteria for Determining Economic Activities

In terms of classification methodology, Decision No. 36/2025/QD-TTg maintains the fundamental principles applied in VSIC 2018, which are aligned with international standards (ISIC). An economic activity is defined as a set of similar economic operations, identified according to three core criteria:¹

• The production process of the economic activity;

• The inputs used by the activity to produce goods or services;

• The characteristics of the output produced by the activity.

Maintaining these three core criteria represents an important element of stability during the transition. This strategy ensures methodological consistency in statistical practice and preserves the comparability of Vietnam’s macroeconomic data with international standards. It also minimizes complexity when converting or comparing historical data series. Therefore, the changes introduced under Decision No. 36/2025/QD-TTg primarily involve refinements in content and granularity at lower classification levels, or strategic regrouping at Level 1, rather than a shift in the underlying classification philosophy.

PART II: ANALYSIS OF HIERARCHICAL STRUCTURE AND QUANTITATIVE CHANGES

The quantitative analysis of the industrial classification structure is a crucial step in assessing the depth and scope of the revisions. Decision No. 36/2025/QD-TTg maintains the five-level hierarchical structure (from Section – Level 1 to Subclass – Level 5) but introduces significant adjustments to the number of industries at certain levels—particularly at the macro level (Level 1) and the intermediate level (Level 3).

2.1. Quantitative Comparison of the Industrial Structure (Levels 1 to 5)

A comparison between VSIC 2018 and VSIC 2025 reveals a structural reorganization focused on the creation of a new top-level industry category and enhanced granularity in the classification of economic activities at the intermediate management levels.

Quantitative Comparison of the Hierarchical Structure of the Vietnam Standard Industrial Classification System (VSIC 2018 vs. VSIC 2025)

Classification Levels	VSIC 2018 (Decision 27/2018)	VSIC 2025 (Decision 36/2025)	Absolute Change (±)	Rate of Change
Level 1 – Sections (Letter Codes)	21 (A – U) 3	22 (A – V) 1	+1	+4.76%
Level 2 – Divisions (Two-Digit Codes)	88 3	87 1	-1	-1.14%
Level 3 – Groups (Three-Digit Codes)	242 3	259 1	+17	+7.02%
Level 4 – Classes (Four-Digit Codes)	486 3	495 1	+9	+1.85%
Level 5 – Subclasses (Five-Digit Codes)	734 3	743 1	+9	+1.23%

The data indicate that the total number of the most detailed industry codes (Level 5) has increased from 734 to 743, representing a net increase of 9 subclasses.¹ Although the numerical growth at this most detailed level is modest, the adjustment is essential since Level 5 serves as the classification level used for business registration and micro-level statistical reporting.

2.2. Analysis of Fundamental Changes at Level 1 (Section Level)

The most significant macro-structural innovation of VSIC 2025 is the addition of a new top-level section. Under VSIC 2018, there were 21 sections, coded from A to U.³ The VSIC 2025 expands this framework to 22 sections, coded from A to V.¹

The creation of a separate Level 1 (Section V) is not merely a technical statistical adjustment but also a strategic policy statement. From a methodological perspective, only those clusters of economic activities that are sufficiently large in scale, homogeneous in production processes, and strategically important to national development orientation are recognized at Level 1. The emergence of Section V signifies the official recognition of a new and growing economic domain that requires independent management and measurement mechanisms.

Based on global economic trends and Vietnam’s current development priorities, this new Section V is likely a strategic separation of activities related to the Digital Economy, Innovation, or High-Value Knowledge Services—which were previously dispersed across traditional sections such as J (Information and Communication) or M (Professional, Scientific and Technical Activities). This regrouping facilitates the formulation of investment promotion and tax incentive policies, while also enabling statistical authorities to more accurately measure the contribution of this sector to Gross Domestic Product (GDP).

2.3. Analysis of the Trend Toward Greater Granularity at Levels 3, 4, and 5

The most substantial increase in the number of industry codes occurs at Level 3, with 17 new groups added—a rise of 7.02%.¹ Level 3 serves as the intermediate management layer, typically defined by clear distinctions in technologyor input materials. The significant expansion at this level indicates that VSIC 2025 aims to enhance the granularity of classification, allowing policymakers to better capture changes in the economic structure at a more specialized level.

For example, refinements at Level 3 make it possible to distinguish more clearly between specialized deep-processing activities, new technology support services, or creative service groups, which were previously aggregated under broader categories. This, in turn, improves the analytical precision of industry performance evaluations.

Although Level 2 has undergone minor consolidation (a reduction of one division, from 88 to 87) to streamline overall classification, the prevailing trend is one of increased detail and refinement. The modest growth at Levels 4 and 5 (+9 subclasses) serves to clarify business registration categories and eliminate overly general codes, thereby improving the transparency and accuracy of micro-level statistical data.

PART III: NEW CONTENT ELEMENTS AND REFLECTION OF MODERN ECONOMIC TRENDS

The quantitative restructuring—namely, the introduction of the new Section V and the greater granularity at Level 3—is a direct outcome of the VSIC 2025’s design objective: to capture emerging economic trends in Vietnam, particularly the rise of technology-driven and sustainable growth sectors.

3.1. Innovations in the Classification of the Digital and Technology Economy

One of the key drivers behind the promulgation of Decision No. 36/2025/QD-TTg is the need to classify and measure the digital economy with greater accuracy. In recent years, activities such as cloud computing, artificial intelligence (AI), big data, and blockchain technology have grown rapidly, yet the classification under VSIC 2018 was insufficient to fully capture their added value.

Decision No. 36/2025/QD-TTg explicitly emphasizes the role of the digital economy.⁵ The update is expected to proceed along two main directions:

• Refinement of Section J (Information and Communication): Activities related to digital platforms, computer programming, and data processing will be clarified through the addition or subdivision of Level 4 and Level 5 codes. This allows a clear distinction between traditional telecommunications services and modern IT-driven services.

• Establishment of Section V (New Section): If Section V is dedicated to creative, knowledge-based, or integrated digital economy activities, it will consolidate high-tech sectors previously dispersed across other areas (e.g., Fintech, EdTech, GovTech).

The clearer definitions in VSIC 2025 of digital economy activities will help statisticians distinguish traditional operations from digitized ones. The ability to measure the “digital economy” accurately under VSIC 2025 will provide a more reliable data foundation for the Government to design national digital economy goals, policies, and strategies, thereby supporting the broader digital transformation agenda.

3.2. Updates in Creative, Cultural, and Professional Service Sectors

Vietnam’s economy is shifting strongly toward high-value, knowledge-based services, requiring more specific industry codes for creative and professional activities.

The need to revise the Creative Services classification has been formally recognized.⁴ The corresponding adjustments are expected to take place across several sectors:

• Section M (Professional, Scientific, and Technical Activities): VSIC 2025 will increase the level of detail for industries related to Research and Development (R&D)—particularly high-tech R&D and specialized consulting services.

• Section R (Arts, Entertainment, and Recreation): The new system will refine codes for digital content production and distribution, video game publishing, and applied arts, enabling better capture of creative economy activities based on intellectual property.

• Business Support Services: More detailed classification of high-skill B2B services (such as management consulting, legal, and accounting services) reflects a broader trend to improve statistical quality for the service sector, which now accounts for an increasingly large share of GDP.

3.3. Refinements in Traditional Manufacturing and Agricultural Sectors

While the focus of VSIC 2025 is on emerging industries, traditional sectors have also been refined to better reflect sustainable development and technological modernization trends.

3.3.1. Section A (Agriculture, Forestry, and Fishing)

Although Section A was already detailed under VSIC 2018³, Decision No. 36/2025/QD-TTg further refines it to integrate environmental and technological dimensions. Specifically, activities relating to sustainable farming systems, agro-heritage, cultural landscapes linked to eco-tourism, and proactive disaster prevention and climate adaptation are explicitly defined.⁷

Integrating climate change adaptation into classification criteria demonstrates that VSIC 2025 is not merely an economic taxonomy—it also embeds sustainability principles within the statistical framework. This enables authorities to systematically monitor and evaluate programs related to the green economy and climate resilience.

3.3.2. Section C (Manufacturing and Processing Industry)

Section C, a key growth engine, is also updated to align with Vietnam’s modern industrialization strategy. Refinements focus on:

• Clearer classification of supporting industries, which are critical to strengthening domestic supply chain localization;

• New codes for high–value-added and technology-intensive products, such as specialized electronic components, biopharmaceuticals, and advanced materials.

PART IV: IMPACTS AND IMPLEMENTATION RECOMMENDATIONS

4.1. Impacts on the National Statistical System

The restructuring of the classification system—especially the increase in Level 3 and Level 5 codes (from 734 to 743)¹—poses significant challenges for statistical operations.

The greatest challenge is the development of a detailed Correspondence Table between VSIC 2018 and VSIC 2025. This table must ensure that macroeconomic data collected under the previous system remain comparable with the new data, thereby maintaining the continuity of time-series data for key indicators such as GDP, industrial production index, and consumer price index.

On the other hand, the greater granularity in VSIC 2025 provides an opportunity to improve data quality. The addition of more specific codes significantly reduces the number of activities previously categorized as “Other, not elsewhere classified,” thereby enhancing the reliability and usability of detailed statistical data.

To minimize statistical risks, comprehensive and unified training is essential. The increased complexity of Level 3 codes and the introduction of the new Section V require that local statistical officers and business registration officials be thoroughly trained in the new classification rules. Without consistent implementation from November 15, 2025, data collected in the first year of application (2026) may be distorted, compromising the accuracy of key macroeconomic indicators.

4.2. Impact on Administrative Management and Enterprises

VSIC 2025 has a direct impact on administrative management and enterprise operations, as this system is uniformly used in administrative registration activities and databases.¹

From November 15, 2025, activities related to the registration of new enterprises or changes to business registration information must use the five-level industry codes in accordance with Decision No. 36/2025/QĐ-TTg. Business Registration Authorities must promptly update the National Business Registration Portal to apply the new industry codes.

For enterprises currently in operation, if their existing industry codes are changed, divided, or merged in the new system, they must review and carry out procedures to update their registered business lines. According to general business registration regulations, the announcement of such changes must be made within 30 days from the date the new Enterprise Registration Certificate is issued.⁴

The legal impacts extend throughout the entire state management system:

Timeline of Effectiveness and Basic Legal Transition Requirements

Event	VSIC 2018 (Decision No. 27)	VSIC 2025 (Decision No. 36)	Required Action	Source
Date of issuance	06/07/2018	29/09/2025	Understand the content of the changes	1
Effective date	20/08/2018	15/11/2025	Complete replacement; VSIC 2018 becomes invalid	2
New enterprise registration	Based on VSIC 2018	Mandatory application of VSIC 2025	Business Registration Authorities must immediately update the National Business Registration Portal system	1
Existing enterprises	Apply 5-level VSIC 2018 codes	Review and update industry codes if affected; make public announcement of changes	Make public announcements within the statutory period (30 days from the issuance of the new Enterprise Registration Certificate)	4

All ministries, sectors, agencies, and organizations that use the Vietnamese System of Economic Industries must transition to the unified use of VSIC 2025¹, including systems related to taxation, customs, investment, and specialized licensing, in order to ensure synchronization across national databases.

CONCLUSION AND RECOMMENDATIONS

Decision No. 36/2025/QĐ-TTg on the Vietnamese System of Economic Industries represents a strategic update, reflecting the structural transformation of Vietnam’s economy toward a knowledge- and technology-based model.
The key innovations of Decision No. 36/2025/QĐ-TTg compared with Decision No. 27/2018/QĐ-TTg focus on:

• Macro Structure: Addition of a new Level 1 sector (Sector V), demonstrating national prioritization in independently classifying and measuring a new strategic economic domain (particularly the digital and creative economy).

• Granularity: Significant enhancement of detail at Level 3 (+17 sectors), enabling clearer identification of deep processing activities, supporting industries, and high-end professional services.

• Modern Integration: Refinement of sectoral content to include digital economy activities (AI, digital platforms) and sustainability criteria, such as climate change adaptation within the agricultural sector.⁷

The effective implementation of Decision No. 36/2025/QĐ-TTg, which takes effect from 15 November 2025, is essential to improve the ability to accurately measure the added value of emerging economic sectors, thereby supporting macroeconomic policymaking based on reliable data.

Recommendations

To ensure a smooth and consistent transition, regulatory authorities should:

1. Disseminate the Correspondence Table:
   The General Statistics Office and the Ministry of Planning and Investment should urgently issue a detailed Correspondence Table between VSIC 2018 and VSIC 2025.

2. Professional Training:
   Organize comprehensive and standardized training programs for statistical officers and business registration officials nationwide on the classification principles of the 22 Level 1 sectors and the newly detailed Level 3 and Level 5 codes.

3. Enterprise Support:
   Provide clear guidance and simplify administrative procedures to enable existing enterprises to review and update their business sector codes in a timely manner, avoiding any disruption to operations.

The transition from Decision 27/2018/QĐ-TTg to Decision 36/2025/QĐ-TTg marks a strategic shift in Vietnam’s approach to economic classification. By modernizing the VSIC system, the government aims to enhance statistical accuracy, support emerging sectors, and align with international standards. Businesses and institutions should proactively review and update their registered industry codes to ensure compliance and take advantage of clearer classification frameworks. Staying informed and adaptive will be key to navigating this change effectively.