return icon

Vietnamese businesses burdened with taxes, FIEs at ease with tax exemptions

Studies have found that Vietnam’s taxation system offers many incentives to foreign invested enterprises (FIEs), but puts an increasingly heavy burden on Vietnamese enterprises and people.

The 2020 annual economic report released by VEPR (the Vietnam Institute for Economic and Policy Research) on June 17 drew the public’s attention to the tax collection system.






The proportion of fees and charges to the total state budget collection and tax revenue has increased in recent years.

“Vietnam’s budget collection very much depends on indirect taxes, especially VAT. Fees and charges are burdening people. The proposals on raising taxes on consumer goods, fees and charges need thorough consideration,” the report reads.

Studies have found that Vietnam’s taxation system offers many incentives to foreign invested enterprises (FIEs), but puts an increasingly heavy burden on Vietnamese enterprises and people.

Pham The Anh, chief economist of VEPR, said one of the factors that most affect tax revenue in Vietnam is tax incentives, especially corporate income tax (CIT).

Many foreign companies investing in Vietnam can enjoy a preferential tax rate of 10 percent, just half of the normal tax rate. And many of them have been exploiting the policy to evade tax.

Vietnam offers too many tax incentives to FIEs, while the benefits Vietnam received from enterprises is modest.

“Some figures such as the loss of revenue because of tax incentives have not been fully calculated and made public. The analyses about the benefits and costs of tax incentives have also not been listed in detail, ” Anh commented.

Pham Chi Lan, a respected economist, believes that when integrating more deeply into the global economy, Vietnam will have more sources of tax collection. Taxation agencies need to design taxes reasonably and organize tax collection.

“What concerns me the most is the execution in tax collection. We adjust taxes, but the tax collection system has not improved. As a result, tax evasion is common in the foreign invested economic sector which should have made a great contribution to the economy,” Lan said.

“This shows Vietnam's inadequacy in tax administration and tax collection,” she said.

She also mentioned so-called ‘tax corruption’, pointing out that taxpayers and tax officers collude to appropriate big amounts of money which should have been paid to the state budget.

Together with tax evasion and tax avoidance, tax incentives offered by the government to certain groups of taxpayers are outside the standard tax system. With the incentives, taxpayers pay lower tax than the standard tax. 

Kim Chi

Foreign-invested enterprises hopeful about plans to list shares on bourse

Foreign-invested enterprises hopeful about plans to list shares on bourse

The Ministry of Finance (MOF), suggesting solutions to help the stock market overcome the Covid-19 crisis, has once again proposed allowing foreign-invested enterprises (FIEs) to list on the bourse. 

FIEs reluctant to list shares on bourse

FIEs reluctant to list shares on bourse

Only 10 foreign invested enterprises (FIEs) have entered the bourse over the last decade, a very modest figure compared with the tens of thousands of enterprises now operational in Vietnam.



Two more national parks nominated ASEAN heritage ones

Coc Coc browser, search engine recognised national digital platform

Vietnamese-developed Coc Coc browser and search engine is now eligible to become a digital platform serving the people in 2022, the Ministry of Information and Communications announced on October 7.


Vietnamese firms attend M-Tech Osaka 2022 expo

Vietnam Airlines flight makes emergency landing to save German passenger

A Vietnam Airlines flight en route from Germany to Ho Chi Minh City made an emergency landing at Baku Heydar Aliyev Airport of Azerbaijan on late October 6 to save a German passenger with health problem.

SSC warns investors about online securities trading apps

Some businesses have created websites and trading applications, such as Passion Invest, Finhay, Tikop, Infina, Savenow and BUFF, to raise capital under unlicensed business cooperation contracts.

Investors warned of the possibility of corporate bond default

In the financial market, investors need to keep in mind the principle of high risk, high return. Therefore, the higher the bond yield, the greater the probability of default.

PetroVietnam, BSR seek foreign capital for Dung Quat

A delegation of officers from PetroVietnam and Binh Son Oil Refining and Petrochemical JSC has attended a thematic seminar on export funding – TXF Asia 2022 – in Singapore.

Lenders look further afield for recruitment

As digital transformation calls for a different set of skills and knowledge, many financial institutions are turning to the overseas market for recruitment.

Moss-covered houses on Tay Con Linh Mountain

The moss-covered houses of the Dao ethnic people are among the special features of Tay Con Linh Mountain in the northern province of Ha Giang.

PM orders karaoke service licensing be tightened

The prime minister has ordered the Ministry of Culture, Sports and Tourism to study and issue more stringent karaoke service licensing regulations.

Six airports proposed for expansion under PPP format

The Ministry of Transport has written to the prime minister proposing upgrading and expanding six airports under the public-private partnership (PPP) format.

VN companies can now compete fairly with cross-border platforms

Cross-border TV OTT platforms will have to have operating licenses and pay tax, and domestic firms will be subjected to looser censorship, thus creating opportunities for domestic firms to compete with foreign ones.

Vietnam ranks 48th in 2022 Global Innovation Index

Vietnam is placed 48th among 132 economies in the Global Innovation Index 2022.

New UNDP Resident Representative pledges support to Vietnam’s development

Ramla Al Khalidi, newly-appointed UNDP Resident Representative in Vietnam, has pledged to further support Vietnam’s development, covering climate change response and the settlement of bomb and mine consequences.

VN should not become a place where investors exploit only cheap labor

Vietnam wants foreign investors to come to cooperate and not build closed facilities that are separate oases in the economy, former chair of the Vietnam Confederation of Commerce and Industry (VCCI) Vu Tien Loc said.