Navigating Vietnam’s Evolving Tax Landscape: Insights from VAFIE Workshop

By Dinh Vu, Thai Ha
Sat, October 25, 2025 | 7:28 PM GMT+7

This past Friday, the Vietnam’s Association of Foreign Invested Enterprises (VAFIE) partnered with the Nghe An province Tax Department to host an enlightening workshop titled “New Tax Policies Impacting Business Operations and Accounting Standards under IFRS.” This event marked a significant step in ensuring that businesses remain informed about the rapidly changing tax landscape in Vietnam, particularly following substantial alterations to tax regulations.

The Workshop’s Purpose

VAFIE chairman Nguyen Anh Tuan opened the session by emphasizing the importance of understanding recent changes in Vietnam’s tax policies. Having previously conducted similar workshops in places like Hai Phong and Ha Nam, Tuan explained that these sessions have garnered considerable interest from businesses seeking clarity amidst the revisions. The incorporation of these workshops aligns with Vietnam’s commitment to modernizing its tax framework, making it crucial for companies operating within its borders to stay updated.

Legislative Changes on the Horizon

Tuan highlighted recent legislative changes, including amendments to the Value-Added Tax (VAT) and Corporate Income Tax laws. These updates are accompanied by guidelines pertaining to the global minimum tax, a policy that aims to standardize tax obligations for multinational corporations with consolidated revenues exceeding $750 million. This new law reflects Vietnam’s international commitments and underscores the need for meticulous policy preparation and implementation mechanisms.

Implications for Local and Foreign Businesses

The impacts of the global minimum tax extend beyond foreign-invested enterprises (FDIs); Vietnamese firms engaged in international supply chains will also need to adapt. Tuan underscored the necessity of timely updates and accurate comprehension of these policies to bolster competitiveness in a global marketplace.

While the concept of a global minimum tax is not novel internationally, its implications for Vietnam are particularly significant. The country is actively pursuing a stock market upgrade, enhancing financial transparency, and adopting international reporting standards (IFRS), all pivotal steps toward deeper integration into the global economy and attracting higher-quality investments.

Nghe An’s Growth Potential

Tuan further spotlighted Nghe An’s potential as an investment hub, attributing its attractiveness to robust infrastructure, including Vinh International Airport, seaport access, and the North-South Expressway. These attributes, coupled with a skilled labor force, position Nghe An favorably in the race to attract foreign direct investments. Recent surges in FDI inflows have catapulted the province into the upper echelons of the north-central region, driven by large-scale industrial ventures that also benefit domestic enterprises through positive spillover effects.

Collaborative Spirit between FDI and Domestic Enterprises

Highlighting the importance of collaboration, Tuan expressed optimism about the synergy between FDI and local businesses as a catalyst for local economic growth. VAFIE is dedicated to forging connections between Vietnamese firms and global leaders such as Samsung and Foxconn, facilitating deeper integration into global value chains and enhancing the competitiveness of local businesses.

The Perspective of Nghe An Tax Department

Nguyen Bang Thang, head of the Nghe An Tax Department, commended the cooperative spirit exhibited by VAFIE, which he believes is essential for strengthening the province’s business community and fostering sustainable socio-economic growth. The workshop served as a forum for dialogue between various stakeholders, ensuring that enterprises can navigate the newly introduced tax regulations effectively.

Focus on Transparency in Tax Operations

During the discussion, Thang addressed a common concern regarding tax inspections and audits. He explained that the Tax Department has adopted a big-data risk assessment approach to develop inspection plans. Businesses with commendable compliance records and lower-risk ratings would not be subjected to inspections, while higher-risk sectors like real estate and mining would be reviewed as directed by the Ministry of Finance.

Thang reassured attendees that the Tax Department aims to prevent overlapping inspections, thus minimizing disruptions to business operations. He emphasized the collaborative relationship between the tax authorities and enterprises, asserting that mutual understanding and shared growth are integral to both the province’s and businesses’ success.

Commitment to Transparency and Efficiency

Concluding his remarks, Thang reiterated The Nghe An Tax Department’s unwavering commitment to transparency in its operations. He mentioned the availability of a public hotline for businesses to report concerns and misconduct, aiming to foster a reliable environment conducive to sustainable business growth.

This workshop exemplified the commitment of both VAFIE and the Nghe An Tax Department to foster a more informed and supportive environment for businesses navigating the evolving tax landscape in Vietnam.