FLEXIBLE TAX POLICY TO PROPEL VIỆT NAM'S ECONOMIC GROWTH IN 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.

The Ministry of Finance will effectively manage export tariffs, preferential import duties, and goods quotas to address business challenges. — VNA/VNS Photo

HÀ NỘI — In a significant move to support businesses during challenging times, the Vietnamese government has extended and enhanced various tax relief programmes for 2025, with reductions and deferral measures aimed at stimulating economic growth.

According to the Ministry of Finance, the tax and fee incentives put in place between 2020 and 2024 made key contributions to socio-economic recovery and development.

The implementation of tax extensions, exemptions, and reductions, particularly the 2-percentage-point VAT cut, helped stimulate domestic consumption, which is one of the three primary drivers of economic growth.

In 2025, the ministry will continue to implement fee reductions ranging from 10 to 50 per cent to encourage citizens and businesses to utilise online public services. The ministry will also effectively manage export tariffs, preferential import duties, and goods quotas, including adjustments to import-export tax policies to address business challenges.

Assoc. Prof. Dr. Nguyễn Thường Lạng from the National Economics University stated that flexible financial policies have delivered tangible benefits to both citizens and businesses while supporting socio-economic recovery. Despite placing significant pressure on the state budget, these tax and fee reduction measures have provided businesses with substantial liquidity while effectively promoting domestic consumption and production activities.

Tax incentives will serve as an important foundation for sustaining economic development in 2025 and beyond, he said. He elaborated that the government’s tax support policies will enable businesses to invest in technology and improve product quality, thereby enhancing their competitiveness in the market. This will particularly benefit small and medium-sized enterprises, helping them navigate through difficult periods.

Amidst ongoing challenges in business operations, high production costs, and slowing domestic purchasing power, the ministry has proposed the government and National Assembly continue the 2-percentage-point VAT cut. This reduction applies to goods and services currently subject to a 10 per cent tax rate, excluding sectors such as telecommunications, IT, finance, banking, securities, insurance, real estate, metals, mining products, refined petroleum, chemicals, and items subject to special consumption tax.

This measure is effective from January 1 to June 30 of this year.

Financial specialist Dr. Nguyễn Trí Hiếu stated that this move could have positive impacts on the economy, as it will strengthen businesses while stimulating domestic consumption. He added that it must be carried out in harmony with other mechanisms and policies to ensure efficacy. — VNS

Source: VNS

Related News

MEMBER CORNER / PROMOTIONS

VIETNAM'S MANUFACTURING STORY HAS CHANGED IN 2026

Vietnam is no longer attracting investment solely because of its competitive costs. Today, global manufacturers are increasingly choosing Vietnam for its expanding industrial ecosystem, resilient supply chains and growing role in high-value sectors such as semiconductors, electronics and advanced manufacturing.

Jul 24, 2026

BANKING / FINANCE / INSURANCE / TAX

VIETNAM NEEDS OVER $200BN FROM STOCK MARKET IN NEXT 5 YEARS

Speaking at the event, Bui Hoang Hai, vice-chairman of the State Securities Commission of Vietnam, said total investment demand in the 2026-30 period is estimated at VND38,000 trillion ($1.4 trillion). The state budget can only provide approximately VND8,500 trillion ($323 billion), or 20 percent, leaving the remaining 80 percent to be sourced from private and international capital.

Jul 23, 2026

VIETNAM ECONOMY INVESTMENT

HUNG YEN BUILDS DIGITAL FOUNDATIONS TO DRIVE LONG-TERM GROWTH

From strengthening data infrastructure to developing AI platforms, Hung Yen province is enhancing governance capacity while laying the groundwork for the growth of its digital economy. Hung Yen, about 50-60km southeast of Hanoi, has maintained steady momentum in implementing its digital transformation agenda, creating a stronger foundation for the province to advance science, technology, and innovation.

Jul 23, 2026

VIETNAM ECONOMY INVESTMENT

CHINESE INVESTMENT WAVE OPENS NEW DOORS

As Chinese companies move beyond factory relocation to ecosystem-driven investment, Vietnam has a rare opportunity to evolve from a low-cost production base into a strategic node in regional value chains. When global companies first diversified supply chains, the focus was largely on relocating manufacturing capacity.

Jul 23, 2026

VIETNAM ECONOMY INVESTMENT

VIỆT NAM STEPS UP EXPORT TO ACHIEVE US$550-BILLION TARGET

Việt Nam is intensifying efforts to sustain export momentum in the second half of 2026 as the country works towards its target of US$550 billion in export revenue for the year, despite continuing uncertainties in global trade. Statistics show that exports reached $266.5 billion in the first six months, meaning the economy needs to generate around $245.5 billion more during the remainder of the year to meet the annual goal.

Jul 23, 2026

VIETNAM ECONOMY INVESTMENT

ASIA POWERS VIETNAM’S SHRIMP BOOM, LEAVING THE WEST BEHIND

In the first half of 2026, Vietnam's shrimp exports surpassed the US$2.3 billion mark, driven largely by booming demand from China and a lobster craze. But behind that growth figure lies a lopsided picture: Asia is carrying the load, while the U.S. and Europe have yet to break out. These days, a container of frozen shrimp leaving a Ho Chi Minh City port is more likely to cross the East Vietnam Sea to Shanghai than the Pacific to Los Angeles.

Jul 23, 2026