What shocked me wasn’t the director’s actions, but my own realization that I, and many others, every day repeatedly transfer money to shops and businesses without knowing whether the accounts are corporate or personal.

Could it be that I, and perhaps many of us, have inadvertently “aided” actions that could lead to tax evasion accusations?

Yet, I also wonder: in a still-disorganized business environment, where many small-scale traders struggle to comply with the law, and the system isn’t fully ready, is it fair to criminally prosecute this director?

A lawyer told me: “Many household businesses, even companies, engage in similar practices due to long-standing casual habits, without warnings from relevant authorities.”

Ecosystem in “transition”

Millions of household businesses and hundreds of thousands of micro-enterprises operate using personal bank accounts, skip invoices, or avoid bank transfers to “avoid trouble.”

Decree 70/2025 on electronic invoices mandates that, from June 1, household businesses using the presumptive tax method with annual revenue of VND1 billion or more must use electronic invoices from cash registers linked to tax authorities’ data systems.

A recent VCCI survey of nearly 1,400 household businesses revealed that 89 percent don’t fully understand their obligations stipulated in the decree, and 50 percent don’t receive necessary guidance from authorities. This leads to avoidance, incorrect transaction records, or reluctance to scale up. Some business households now require cash instead of online money.

The survey found that 63 percent of household businesses opt to reduce their scale, while small supermarkets tend to scale down (91 percent and 100 percent, respectively). They fear the new regulations.

We talk a lot about digital transformation, electronic invoices, and revenue loss prevention. But transformation can’t rely solely on mandates. 

VCCI Deputy Secretary-General Dau Anh Tuan said: “Transformation isn’t just about administrative orders. It needs understanding, consensus, and mutual support.”

Exit ban is another solution being applied by taxation agencies to force businesspeople to fulfill duty obligations. The measure is being applied to over 63,000 people owing taxes, totaling more than VND84 trillion. 

The huge figure shows thousands of struggling businesses. In such a situation, restricting the right to move – which is a tool for them to find partners and restore business – will probably make it even more difficult for them to recover.

Law and justice

Vietnam has identified three strategic breakthroughs: perfecting institutions, improving the business environment, removing barriers and the “ask-give” mechanism. 

The policy has set a high goal: by 2030, Vietnam's business environment should be among the top 3 ASEAN countries and the top 30 in the world.

Meanwhile, businesses and households are entangled in complex, sudden regulations they still can’t comply with. The question is: should a director be punished for a common, familiar practice, not previously warned or guided, in an unstandardized environment?

Justice involves evaluating actions in their specific social context, considering the actual harm, and choosing the most appropriate response. For the Ha Tinh director, an administrative fine, tax recovery, warning, or even support for proper declaration might suffice.

If the law only instills fear and avoidance, it erodes business confidence, which a very important.

From 2011 to 2025, Vietnam has had about 940,000 businesses and over 5 million household businesses, contributing roughly 50 percent of GDP. Household businesses—small, informal entities—play a vital role in employment, income generation, and social stability.

According to a Ministry of Finance report presented at a recent economic forum by the Central Strategic Policy Committee, the private sector is key to double-digit growth.

In the 2025-2030 period, the economy is expected to need $1.774 trillion of investment capital, with the domestic private sector expected to contribute $146–162 billion annually, or three times the FDI sector and double the state sector. 

To reach that end, the Vietnam needs business confidence, a transparent, stable, and safe legal environment for investment and growth.

Tu Giang