Vietnam’s tax system is at a critical turning point, facing major reform opportunities and challenges. As one of the fastest growing economies in Southeast Asia, Vietnam’s tax reform is not only related to the country’s long-term development strategy, but also has a far-reaching impact on global investors and companies. This article aims to provide an in-depth forecast and analysis of Vietnam’s tax reform in the next 5-10 years based on expert opinions and current trends.
Currently, Vietnam’s tax system mainly consists of corporate income tax, personal income tax, value-added tax, special consumption tax, etc. The standard corporate income tax rate is 20%, and some special industries or regions enjoy preferential tax rates. Personal income tax adopts progressive tax rates, with the highest marginal tax rate of 35%. The standard value-added tax rate is 10%, and some goods and services are subject to a preferential tax rate of 5% or tax exemption. This system has provided important support for Vietnam’s economic development in the past few decades, but with the changes in the domestic and international environment, its limitations are becoming increasingly apparent.
The factors driving Vietnam’s tax reform are diverse and complex. First, economic structural transformation is the main driving force. Vietnam is striving to shift from labor-intensive to technology-intensive industries, and tax policies need to be adjusted accordingly to support this transformation. Second, the rapid development of the digital economy has challenged the traditional tax system, and new policies are needed to deal with the tax issues of cross-border digital services and e-commerce. Third, changes in the international tax environment, such as the OECD’s BEPS Action Plan and the implementation of the global minimum tax rate, require Vietnam to adjust its international tax policy. In addition, the growth of domestic fiscal needs, especially in infrastructure construction and social welfare spending, is also driving tax reform. Finally, environmental protection and sustainable development goals are becoming increasingly important, which may lead to the introduction of new taxes such as environmental taxes.
Faced with these driving factors, Vietnam’s tax reform is expected to develop in a more modern, international and diversified direction. In the following chapters, we will discuss in detail the specific reform measures that Vietnam may take in the next 5-10 years, including changes in major taxes, tax policies in emerging areas, international tax cooperation, etc. These forecasts and analyses will provide valuable insights for companies, investors and policymakers to help their long-term strategic planning in Vietnam.
Forecast of major tax reforms
In the next 5-10 years, Vietnam’s major tax categories are expected to undergo a series of major reforms. These reforms are aimed at optimizing the tax structure and improving tax efficiency while supporting the country’s economic transformation and social development goals. The following is a forecast analysis of the major tax reforms:
1. Corporate Income Tax
Corporate income tax reform may develop in two directions: lowering the standard tax rate and optimizing tax incentives. It is expected that the standard tax rate may be gradually reduced from the current 20% to 15-18% to enhance international competitiveness. At the same time, tax incentives will be more precise, with a focus on supporting high-tech, environmental protection industries and strategic emerging industries. In addition, it is expected that stricter anti-tax avoidance measures will be introduced, including strengthening controlled foreign company (CFC) rules and limiting interest deductions.
2. Personal income tax
Individual income tax reform may focus on expanding the tax base and adjusting the tax rate structure. It is expected that the threshold will be lowered while increasing the tax rate for high-income groups to achieve a more equitable tax distribution. In addition, a comprehensive income tax system may be introduced to combine income from different sources for taxation. Tax policies for foreigners may be adjusted to attract high-end talents.
3. Value Added Tax
The VAT reform is likely to focus on simplifying the tax rate structure and expanding the scope of tax collection. It is expected that the existing multiple tax rates will be reduced and may be unified into a single rate or two tax rates. At the same time, some goods and services that are currently exempt from VAT may be included in the tax scope. Digital services and cross-border e-commerce will become the focus areas of VAT reform to cope with the rapid development of the digital economy.
4. Special Consumption Tax
The special consumption tax reform may develop in two directions: expanding the scope of collection and adjusting the tax rate. Environmentally harmful products and luxury goods may face higher tax rates. At the same time, emerging products (such as e-cigarettes) may be included in the tax scope. It is also expected that a more flexible tax rate adjustment mechanism will be introduced to adjust the tax rate in a timely manner according to social and economic needs.
5. Property Tax
Property tax may be an important direction for future tax reform. It is expected that real estate tax will be introduced or improved, and a taxation model based on market value may be adopted. This reform aims to adjust income distribution, curb real estate speculation, and provide a stable source of income for local governments. In addition, the introduction of inheritance tax and gift tax may also be taken into consideration.
These tax reform forecasts reflect Vietnam’s efforts to balance economic development, social equity and international competitiveness. Enterprises and individuals should pay close attention to these potential changes and adjust their tax strategies and long-term planning in a timely manner.
Development of tax policies in emerging sectors
In Vietnam’s tax reform in the next 5-10 years, the development of tax policies in emerging areas will become an important focus. With the transformation of the global economic structure and the increase in environmental protection awareness, the three areas of digital economy taxation, environmental taxation and carbon taxation are expected to become the focus of Vietnam’s tax policy innovation.
1. Taxation of the Digital Economy
The rapid development of the digital economy has posed a severe challenge to Vietnam’s existing tax system. It is expected that in the next few years, Vietnam will gradually establish specific tax policies for the digital economy. Experts predict that this may include the imposition of value-added tax on cross-border digital services, the imposition of digital service tax on the revenue of large technology companies, and the establishment of new permanent establishment recognition standards to cope with the characteristics of the digital economy. At the same time, Vietnam may refer to the OECD’s digital economy taxation plan and introduce globally unified digital tax rules. These measures are intended to ensure that digital economic activities can contribute to tax revenue fairly without hindering innovation and economic growth.
2. Environmental Tax
Environmental protection has become one of the important agendas of the Vietnamese government. It is expected that Vietnam will significantly strengthen and expand its environmental tax system in the next 5-10 years. This may include increasing the tax rate of existing environmental protection taxes and expanding the scope of taxation to more polluting industries and products. At the same time, Vietnam may introduce new environmental-related taxes, such as plastic taxes or packaging taxes, to reduce environmental pollution and promote sustainable development. Experts also predict that Vietnam may use tax incentives to encourage companies to adopt clean production technologies and renewable energy. These policies will not only help improve environmental quality, but will also promote the transformation of Vietnamese industries to a green economy.
3. Carbon Tax
As an important measure to combat climate change, carbon tax is expected to be implemented in Vietnam in the next 5-10 years. Experts predict that Vietnam may first pilot carbon tax in some high-carbon emission industries, such as electricity, cement and steel industries, and then gradually expand to other industries. The introduction of carbon tax will be coordinated with Vietnam’s carbon emissions trading system to form Vietnam’s carbon pricing mechanism. This policy will not only help Vietnam achieve its emission reduction commitments under the Paris Agreement, but will also promote enterprises to transform to a low-carbon production model. At the same time, carbon tax revenue may be used to support the research and development and promotion of clean energy technologies, as well as to help affected industries and groups transform.
The development of tax policies in these emerging areas will have a profound impact on Vietnam’s economic structure and business operation model. Enterprises need to pay close attention to the evolution of these policies and adjust their business strategies and operating models in a timely manner to adapt to the new tax environment. At the same time, these policies will also create new opportunities for companies committed to digital innovation and environmental protection.
International Tax Cooperation and Reform
In the next 5-10 years, Vietnam’s international tax cooperation and reform will enter a new stage. With the deepening of global economic integration and the changes in international tax rules, Vietnam will have to adjust its tax policies to adapt to these changes. This section will explore Vietnam’s possible measures in responding to BEPS, implementing the global minimum tax rate, and expanding the tax treaty network.
1. Measures to address BEPS
Vietnam is expected to further strengthen its measures to combat base erosion and profit shifting (BEPS). Experts predict that Vietnam may take the following actions: First, improve transfer pricing rules, including introducing country-by-country reporting and master file requirements to increase transparency in multinational corporate transactions. Second, strengthen the management of controlled foreign companies (CFCs) to prevent profit shifting to low-tax regions. Third, revise the thin capitalization rules to limit excessive interest deductions. Finally, Vietnam may introduce general anti-avoidance rules (GAAR) to deal with complex tax planning arrangements. These measures will significantly enhance Vietnam’s ability to prevent international tax avoidance.
2. Impact of the global minimum tax rate
The global minimum tax rate proposed by the OECD (currently 15%) will have a profound impact on Vietnam’s tax policy. Some of Vietnam’s current tax incentives may need to be adjusted to ensure that the actual tax rate of large multinational companies in Vietnam is not lower than the global minimum standard. Experts predict that Vietnam may redesign its tax incentives from direct tax rate reductions to more investment credits or accelerated depreciation measures. At the same time, Vietnam may also consider introducing domestic top-up tax rules to ensure that multinational companies operating in Vietnam pay at least 15% effective tax rate. These changes will change the structure of Vietnam’s investment attractiveness, and companies need to reassess their investment strategies in Vietnam.
3. Expansion of the tax treaty network
Vietnam is expected to continue to expand its tax treaty network to promote international investment and trade. Experts predict that Vietnam will focus on signing new tax treaties with emerging market countries and important trading partners, while also revising some existing treaties to adapt to new international tax rules. In particular, Vietnam may include clauses to prevent treaty abuse in new tax treaties, such as the primary purpose test (PPT) or limitation of benefits clause (LOB). In addition, Vietnam may participate more actively in the negotiation of multilateral tax treaties to enhance its voice in international tax affairs.
These international tax cooperation and reform measures will make Vietnam’s tax system more in line with international practices and help improve Vietnam’s position in the global value chain. However, this also means that multinational companies operating in Vietnam will face a more complex tax environment and need to be more cautious in tax planning and risk management. Companies should pay close attention to these changes and adjust their global tax strategies in a timely manner.
Modernization of Tax Administration
In the next 5-10 years, Vietnam’s tax administration is expected to undergo a profound modernization transformation. This transformation will mainly be reflected in digital tax administration, the application of big data and artificial intelligence, and the comprehensive reform of taxpayer services. These changes are aimed at improving the efficiency, accuracy and fairness of tax administration, while providing more convenient services for taxpayers.
1. Digital tax management
Vietnam’s tax authorities are expected to comprehensively promote the digital transformation of tax administration. Experts predict that a comprehensive electronic declaration and electronic tax payment system will be implemented in the future, covering all tax types and taxpayer groups. The electronic invoice system will be further improved and popularized to achieve real-time data transmission and verification. In addition, blockchain technology may be introduced into tax administration, especially in the tracking of cross-border transactions and VAT management. These measures will greatly improve the efficiency of tax collection and management, reduce tax losses, and also simplify the compliance process for taxpayers.
2. Application of Big Data and AI in Taxation
Big data analysis and artificial intelligence technologies will play an increasingly important role in Vietnam’s tax management. Tax authorities may establish big data platforms to integrate data from multiple government departments and external sources. Through AI algorithms, tax authorities will be able to more accurately identify high-risk taxpayers, predict tax trends, and conduct precise tax audits. Machine learning technology may be used to automatically process tax returns, identify abnormal patterns and potential violations. The application of these technologies will significantly improve the efficiency and accuracy of tax management, while also placing higher requirements on taxpayers’ compliance behavior.
3. Taxpayer Service Reform
Vietnam’s tax authorities are expected to vigorously reform taxpayer services to improve taxpayer satisfaction and voluntary compliance. Experts predict that more personalized online service platforms, such as virtual assistants and intelligent consulting systems, will be launched in the future to provide 24/7 support to taxpayers. Mobile applications may become the main channel for taxpayers to interact with tax authorities. In addition, tax education and publicity methods will also be innovative, and virtual reality (VR) or augmented reality (AR) technology may be used to provide more intuitive tax knowledge training. The taxpayer feedback mechanism will be further improved to ensure that taxpayers’ voices can be better heard and responded to.
These tax administration modernization measures will profoundly change Vietnam’s tax environment. For taxpayers, this means a more convenient tax payment experience, but they also need to improve their digital capabilities and compliance awareness. Enterprises need to update their internal systems and processes in a timely manner to adapt to these changes. At the same time, they should also be vigilant about data security and privacy protection issues to ensure legal and compliant operations in the new tax administration environment.
Reform of the local tax system
In the next 5-10 years, Vietnam’s local tax system is expected to undergo major reforms. These reforms will focus on the adjustment of central and local tax distribution and the innovation of local tax types. These changes are aimed at balancing regional development, enhancing the fiscal autonomy of local governments, and promoting the efficiency and fairness of the overall tax system.
1. Distribution of central and local tax revenues
Experts predict that Vietnam will make major adjustments to the existing central and local tax distribution mechanism. It is expected that the local government’s share of tax revenue will increase, especially for taxes closely related to local economic development, such as business tax and some corporate income tax. This reform may be implemented in stages, first piloted in economically developed regions and then gradually promoted. At the same time, a more flexible distribution mechanism may be established to allow dynamic adjustments based on local economic development and fiscal needs. These changes will enhance the fiscal capacity of local governments, but may also exacerbate the fiscal gap between regions, so it is expected that a more complete fiscal transfer payment system will be implemented in conjunction.
2. Innovation of local taxes
In terms of local tax innovation, Vietnam may introduce new taxes or adjust existing taxes to enhance local fiscal revenue. Experts predict that new taxes such as urban maintenance and construction tax and local education surcharge may be considered. In addition, the existing property tax may be reformed to adopt a more market-oriented evaluation method to better reflect the economic development level of different regions. Part of the revenue from the environmental protection tax may be left to local governments to encourage them to strengthen environmental protection. At the same time, in order to promote local economic development, local governments may be given greater tax incentives and allowed to independently formulate tax incentives within a certain range.
These reforms to the local tax system will have a wide-ranging impact on businesses and individuals. For businesses, they may need to pay more attention to changes in local tax policies and adjust their investment and business strategies according to the tax environment in different regions. For individuals, they may face more local tax burdens, but they may also benefit from improved local public services. Overall, these reforms will make Vietnam’s tax system more diversified and flexible, but may also increase the complexity of tax compliance. Taxpayers need to pay close attention to these changes and adjust their tax planning and management strategies in a timely manner.
Industrial Policy and Tax Incentives
In the next 5-10 years, Vietnam’s industrial policies and tax incentives are expected to change significantly to adapt to the needs of economic transformation and sustainable development. These changes will focus on high-tech industries, green economy and support for small and medium-sized enterprises, aiming to promote economic structure optimization and innovation-driven development.
1. High-tech Industry
Vietnam will further increase tax support for high-tech industries. Experts predict that the government may extend the existing tax incentives for high-tech enterprises and increase the incentives. For example, the preferential corporate income tax rate for high-tech enterprises may be further reduced from the current 10%, or the tax exemption period may be extended. At the same time, more tax incentives for R&D activities may be introduced, such as increasing the additional deduction ratio for R&D expenses, or introducing R&D tax credit policies. In addition, the personal income tax preferential policies for high-tech talents may also be further improved to attract and retain high-end talents.
2. Green Economy
To promote the development of the green economy, Vietnam is expected to introduce a series of new tax incentives. This may include more favorable tax rates for renewable energy projects, such as extending the tax exemption period or reducing the tax rate. Additional tax credits may be provided for enterprises that adopt clean production technologies or achieve energy conservation and emission reduction. At the same time, accelerated depreciation policies for investments in environmental protection equipment may be introduced. On the consumer side, consumers may be encouraged to buy energy-saving products or electric vehicles through tax incentives. These measures will form a comprehensive green tax incentive system to drive Vietnam’s economy in a more sustainable direction.
3. Support for Small and Medium Enterprises
Considering the important position of SMEs in Vietnam’s economy, future tax policies will pay more attention to supporting SMEs. Experts predict that a simplified tax system for SMEs may be introduced, such as a unified low tax rate or a turnover tax system. At the same time, the VAT threshold for SMEs may be raised to reduce their tax burden. For start-ups, more favorable tax policies may be introduced, such as a tax-free period of several years. In addition, in order to encourage innovation in SMEs, targeted R&D tax incentives may be introduced, such as increasing the additional deduction ratio for R&D expenses of SMEs.
These changes in industrial policies and tax incentives will have a profound impact on Vietnam’s economic structure and corporate development. High-tech enterprises and enterprises in the green economy will receive more policy support and are expected to become new drivers of economic growth. Small and medium-sized enterprises may usher in a more favorable tax environment, which will help enhance their competitiveness and innovation capabilities. However, these policy changes may also bring new challenges, such as the imbalance of tax burdens among industries and the increased complexity of tax incentives. Enterprises need to pay close attention to these policy changes and adjust their business strategies in a timely manner to make full use of the new tax incentives.
Tax Fairness and Social Policy
In the next 5-10 years, Vietnam’s tax policy is expected to pay more attention to social equity and social security. This trend will be mainly reflected in the adjustment of progressive personal income tax rates and the implementation of new social security tax measures. These changes are aimed at alleviating income inequality, strengthening the social security system, and ensuring the fairness and sustainability of the tax system.
1. Progressive tax rate adjustment
Experts predict that Vietnam may make major adjustments to the progressive tax rate structure of personal income tax. On the one hand, the highest marginal tax rate may be increased to increase the progressivity of taxation. Currently, Vietnam’s highest personal income tax rate is 35%, which may be increased to 40% or higher in the future to align with international trends. On the other hand, the tax rate brackets may be adjusted to increase the intermediate tax rate brackets to make the tax rate structure smoother. At the same time, the tax threshold may be increased to reduce the tax burden on middle- and low-income groups. These adjustments will make the tax system more fair, while also increasing the tax burden on high-income groups.
2. Social Security Tax Measures
To strengthen the social security system, Vietnam may introduce new tax measures. One possibility is to introduce a dedicated social security tax or social insurance tax to finance social security programs such as pensions and medical insurance. This may replace or supplement the existing social insurance contribution system. Another possibility is to expand the social security function of existing taxes, such as dedicating part of the value-added tax or consumption tax revenue to social security spending.
In addition, tax incentives for specific social groups may be introduced. For example, to encourage childbirth, tax relief for families with children may be increased. To support the elderly population, preferential pension tax policies may be introduced, such as allowing individuals to deduct a certain percentage of pension savings from their pre-tax income.
At the same time, in order to cope with the challenges brought by an aging population, it may be considered to extend the retirement age and adjust the preferential policies of personal income tax accordingly, such as increasing the tax-free amount for the elderly or lowering their applicable tax rate.
These changes in tax equity and social policies will have a profound impact on Vietnam’s socio-economic structure. They may help alleviate income inequality and strengthen the social security network, but they may also increase the tax burden on high-income groups and businesses. For individuals, this means that they need to pay more attention to personal tax planning and social security savings. For businesses, they may need to adjust their compensation strategies and employee benefit plans to adapt to the new tax environment. Overall, these changes reflect Vietnam’s efforts to strike a balance between economic development and social equity, and will push Vietnam towards a more inclusive and sustainable development direction.
Potential Challenges and Risks
Although Vietnam’s tax reform in the next 5-10 years is full of opportunities, it also faces many challenges and risks. These challenges are mainly reflected in the tax impact of economic structural transformation, international tax competition pressure, and the political economy of tax reform. Understanding these potential challenges and risks is crucial for both policymakers and corporate decision makers.
1. Tax Impact of Economic Structural Transformation
Vietnam is at a critical stage of transformation from a labor-intensive to a technology-intensive economy. This transformation process will have a profound impact on the tax structure. With the decline in the proportion of traditional manufacturing and the rise of high-tech industries, existing tax incentives may need to be re-evaluated. At the same time, the rapid development of the service industry and the digital economy may lead to tax base erosion, and traditional tax collection and management methods may be difficult to adapt to the emerging economic form. In addition, industrial upgrading may lead to changes in the employment structure in the short term, which in turn affects personal income tax and social insurance revenue. The government needs to find a balance between promoting economic transformation and maintaining tax stability, which will be a huge challenge.
2. International Tax Competition Pressure
In the context of globalization, Vietnam faces fierce tax competition from other emerging economies. On the one hand, in order to attract foreign investment, Vietnam may be forced to maintain or even reduce corporate tax burdens, which may lead to reduced tax revenue. On the other hand, the implementation of the global minimum tax rate may limit Vietnam’s space to use tax incentives to attract investment. In addition, with the restructuring of the global value chain of multinational corporations, Vietnam needs to adjust its transfer pricing policy to ensure reasonable tax distribution. In this case, how to maintain attractiveness in international tax competition while ensuring fair tax distribution will be a major challenge for Vietnam.
3. Political Economics of Tax Reform
Tax reform is not only an economic issue, but also a complex political process. In promoting tax reform, the Vietnamese government may face resistance from different interest groups. For example, increasing the progressivity of personal income tax may be opposed by high-income groups; reducing tax incentives in certain industries may cause dissatisfaction among related companies. At the same time, tax reform also needs to consider the balance of interests between local governments and the central government. In addition, reform may bring short-term economic fluctuations, which may affect public support for reform. Therefore, how to find a balance between the interests of all parties and how to effectively communicate the necessity and long-term benefits of reform will be the key challenges in promoting tax reform.
In the face of these challenges and risks, Vietnam needs to adopt a prudent and flexible strategy. This may include gradually advancing reforms, establishing an effective monitoring and evaluation mechanism, strengthening international cooperation to address global tax challenges, and increasing transparency and public participation in tax policy making. At the same time, companies and individuals also need to pay close attention to these potential changes and adjust their tax strategies and business decisions in a timely manner to adapt to possible changes in the tax environment in the future.
Impact and Suggestions on Enterprises
Vietnam’s tax reforms over the next 5-10 years will have a profound impact on companies operating in Vietnam. This section will explore the potential impact of these changes on companies and provide corresponding recommendations, mainly from three aspects: long-term tax planning strategies, expected changes in compliance costs, and investment decision-making considerations.
1. Long-term tax planning strategies
Faced with the expected changes in Vietnam’s tax system, companies need to adjust their long-term tax planning strategies. First, companies should establish a more flexible tax structure that can quickly adapt to policy changes. Second, given the possible introduction of digital economy taxes and environmental taxes, companies should begin to evaluate the potential impact of these new taxes on their business models and develop corresponding response strategies. Third, with the possible tightening of transfer pricing rules, multinational companies need to review their internal transaction arrangements to ensure compliance with the arm’s length principle. Finally, considering the possible changes in tax incentives, companies should diversify their tax optimization strategies and not overly rely on a single incentive policy.
2. Expected changes in compliance costs
Tax reform may lead to changes in corporate compliance costs. On the one hand, with the digitization and intelligence of tax management, corporate compliance costs may be reduced in the long run. On the other hand, the introduction of new taxes and the complexity of international tax rules may increase the compliance burden in the short term. Companies should anticipate and prepare for these changes, and may need to invest in tax technology and talent training. At the same time, companies should also consider strengthening cooperation with tax advisors to cope with the increasingly complex tax environment.
3. Investment decision considerations
Future tax reforms will become an important consideration for corporate investment decisions. First, companies need to pay close attention to changes in tax policies in different regions and industries, which may affect investment layout decisions. Second, given the possible environmental and carbon taxes, companies should pay more attention to environmental factors when undertaking large-scale investment projects. Third, with the development of digital economy tax policies, companies may need to reassess their digital transformation strategies. Finally, given the possible strengthening of support policies for small and medium-sized enterprises, some large companies may need to consider indirectly benefiting by cooperating or investing in small and medium-sized enterprises.
In general, Vietnam’s future tax reforms will bring challenges and opportunities to enterprises. Enterprises need to increase tax sensitivity, strengthen risk management, and integrate tax considerations more deeply into their overall business strategy. At the same time, enterprises should also actively participate in policy discussions and provide constructive opinions on tax reforms. Through forward-looking planning and flexible responses, enterprises can maintain their competitive advantages and achieve sustainable development in the ever-changing tax environment.
Conclusion
The prospects for tax reform in Vietnam in the next 5-10 years are both challenging and full of opportunities. Through in-depth analysis of various aspects, we can foresee that Vietnam’s tax policy will develop in a more modern, international and fair direction.
First, digitalization and technological innovation will have a profound impact on Vietnam’s tax management and collection methods. The full implementation of the electronic tax system and the application of big data and artificial intelligence will significantly improve the efficiency of tax collection and management while providing more convenient services for taxpayers. This trend will require enterprises and individuals alike to enhance their digital capabilities to adapt to the new tax environment.
Secondly, the deepening of international tax cooperation will promote the further alignment of Vietnam’s tax policies with international standards. Measures such as responding to BEPS, implementing the global minimum tax rate, and expanding the tax treaty network will change Vietnam’s international tax landscape. This will bring new challenges and opportunities to multinational companies, requiring them to conduct global tax planning more prudently.
Furthermore, Vietnam’s tax policy will pay more attention to industrial guidance and social equity. High-tech industries, green economy and small and medium-sized enterprises will receive more tax support, while the progressivity of personal income tax may be enhanced. This reflects Vietnam’s efforts to find a balance between economic development and social equity.
However, these reforms also face many challenges, including the tax impact of economic structural transformation, international tax competition pressure, and political economic considerations in the reform process. Vietnam needs to respond to these challenges prudently and flexibly to ensure stable economic development while promoting reform.
In general, the tax system reform in the next 5-10 years will have a profound impact on Vietnam’s economic and social development. The government, enterprises and individuals need to actively prepare to adapt to these changes. For policymakers, it is necessary to find a balance between promoting economic development, ensuring social equity and safeguarding national interests. For enterprises and individuals, it is necessary to plan ahead and flexibly adjust strategies to maintain competitiveness and achieve sustainable development in the new tax environment.
Vietnam’s tax reform path is undoubtedly full of challenges, but if successfully implemented, it will lay a solid foundation for Vietnam’s long-term economic prosperity and social progress. Future development trends deserve our continued attention and in-depth study.
