Ministry proposes VAT reduction to 8% to boost economy
The Ministry of Finance has recently put forward a proposal to the government to bring down value-added tax (VAT) from 10% to 8% for a number of goods and services to boost the economy.
A shopper browses products at a supermarket in HCM City (Photo: VNA)
Hanoi (VNS/VNA) - The Ministry of Finance has recently put forward aproposal to the government to bring down value-added tax (VAT) from 10% to 8%for a number of goods and services to boost the economy.
According to the ministry's tax department, the government is to consider twooptions regarding VAT reduction.
The first one is slashing 2% off the current 10% VAT on a number of goods andservices.
The second one is also slashing 2% off the current 10% VAT but excludes goodsand services that were already under the effect of a previous VAT reduction aspart of a government's policy to boost economic recovery after COVID-19.
Businesses have been long asking for additional support from the government tohelp speed up economic recovery and to cope with recent difficulties.
The Ho Chi Minh City Food and Foodstuff Association (FFA) said businesses havebeen struggling since the end of last year with rising interest rates, poorliquidity, increased risk in the bond and stock markets and higher input andlogistics prices.
In addition, orders for export have been on the decrease. According to the FFA,VAT reduction was among one of the most effective policies in supportingbusinesses and urged the government to extend the policy.
Similarly, the Vietnam Beverage Association (VBA) asked the government toextend the policy at least until the end of this year, saying while there hasbeen some improvement in recent months it will take a long time for thebeverage industry to fully recover after the pandemic.
The European Chamber of Commerce (EuroCham) said VAT reduction has played a keypart in speeding up economic recovery, and has been a boon to businesses andconsumers alike.
The chamber said it has helped with the government's efforts in keepinginflation in check, boosting consumption and encouraging businesses to investin expanding their operations. Consumers have also benefited from the lowerVAT, which is in line with the government's policy to aid the populationpost-pandemic./.
The value added tax (VAT) will be reduced by 2 percentage points to 8 percent starting this February as part of measures helping taxpayers tackle difficulties.
The Philippines is set to launch a value-added tax (VAT) refund programme for foreign tourists in 2024 to attract more visitors, according to the country’s Presidential Communications Office (PCO).
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
A shopper browses products at a supermarket in HCM City (Photo: VNA) 
