Key takeaways

Decree 259 introduces the following key changes regarding dual-use goods:

• Establishment of a comprehensive catalog of dual-use goods subject to licensing requirements, covering 10 main categories, from radioactive materials and electronics to metals, alloys and Unmanned Aerial Vehicles (UAVs).
• Introduction of a two-tier licensing system comprising shipment-based licenses (three-month validity) and time-based licenses (12-month validity with unlimited quantity) for enterprises with certified internal compliance programs.
• Incentivization of internal compliance programs through access to time-based licenses with simplified procedures.
• Mandatory enterprise obligations, including annual reporting, five-year record retention and notification duties for suspicious transactions.

In more detail

Scope and licensing requirements for dual-use goods

Dual-use goods are defined as goods that are normally used for civilian purposes but that can be used to develop, produce or operate weapons of mass destruction or conventional weapons. Enterprises must obtain licenses when exporting, temporarily importing for reexport, transshipping, transiting or transferring dual-use goods listed in the catalog.

The catalog includes the following main categories of dual-use goods:

• Radioactive materials and nuclear equipment.
• Electronics (high-performance integrated circuits, radiation-resistant components, semiconductor substrates and high-power supplies).
• Computers (extreme environment systems and missile design simulation equipment).
• Telecommunications, sensors, and lasers (interception equipment, UAV control systems, magnetometers, gravimeters and high-speed cameras).
• Aviation equipment (accelerometers, inertial navigation systems, Global Navigation Satellite System (GNSS) receivers and turbine engines).
• Marine equipment (deep submersibles intended for use at depths over 1,000 meters and submarine engines).
• Biological agents and toxins.
• Chemicals (industrial explosives, precursors and organometallic compounds).
• Metals and alloys (high-strength or high-purity materials, including titanium, tungsten, beryllium, hafnium and rhenium).
• UAVs with specified endurance capabilities.

Each ministry will publish detailed catalogs with Harmonized System (HS) codes and technical specifications. Only goods that match both the HS codes and the technical specifications require licensing.

Licensing authorities and procedures

Licensing authority is allocated among the following ministries based on categories of products:

• Ministry of Science and Technology: radioactive materials, nuclear equipment, certain electronics, computers and telecommunications.
• Ministry of Industry and Trade: certain electronics, chemicals, metals, alloys and UAVs.
• Ministry of Construction: aviation and marine equipment.
• Ministry of Health: biological agents and toxins.

The following types of licenses are available:

• Shipment-based licenses: valid for three months from issuance.
• Time-based licenses: valid for 12 months with unlimited quantity, available exclusively to enterprises with certified internal compliance programs.

Application dossiers must include the following (Clause 1, Article 9): an application form (Appendix III); end-user commitment letter in English and Vietnamese confirming that the goods will not be used for weapons of mass destruction and will not be supplied to designated entities; supporting documents, such as contracts; and previous implementation reports, where applicable. The standard processing timeline is seven working days from receiving a complete dossier, extendable where interministerial consultation is required.

Internal compliance programs

Enterprises are encouraged to develop internal compliance programs, following certain procedures. Enterprises implementing programs for two or more years and certified by the Ministry of Industry and Trade qualify for time-based licenses. The certification process requires the submission of an application form, a description of the internal control system and a two-year implementation report. Certifications are valid for five years and may be revoked for noncompliance, false information or failure to report.

Enterprise obligations and enforcement

Enterprise must do the following:

• Notify the Ministry of Industry and Trade and the Ministry of National Defense upon detecting goods that are potentially being used for weapons of mass destruction or supplied to end users on designated entities lists.
• Retain records for a minimum of five years.
• Cooperate with inspections and provide documents upon request.
• Submit annual reports to the Ministry of Industry and Trade by 30 January 2026 (Appendix VI format).

Licenses may be revoked for false declarations, noncompliance with license terms, violations of nonproliferation regulations or national security policy changes. Within six months from the effective date, licensing authorities must implement online licensing through the National Single Window system.

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Ngoc Trung Tran, Senior Regulatory Advisor, has contributed to this legal update.