AGRICULTURAL LAND TAX EXEMPTION MOTIVATES BUSINESS
Extending exemptions for agricultural land use tax is expected to create motivation for businesses to expand and renovate their investments in Vietnam. The government has proposed that agricultural land use continue to be exempted from taxation through to 2030, according to a draft resolution on the issue submitted in mid-May to the National Assembly (NA).
BANKING INDUSTRY PROMOTES DIGITAL TRANSFORMATION FOR SMART DIGITAL ECOSYSTEM
Many credit institutions in Việt Nam have achieved a digital transaction rate of more than 95 per cent. Nearly 87 per cent of Vietnamese adults have bank accounts. The digital transformation of the banking industry must be further promoted to better the connection between commercial banks with people, enterprises and the State, Prime Minister Phạm Minh Chính said at a banking event on Thursday.
POLICY BOOST URGED AS FINANCIAL LEASING HITS VNĐ40.7 TRILLION IN Q1
Financial leasing reached nearly VNĐ40.7 trillion (US$1.6 billion) at the end of the first quarter of this year, representing an increase of 8.4 per cent year-on-year, Vietnam Financial Leasing Association (VFLE) said, urging solutions to promote the role of financial leasing in the economy. The increase came amid a complicated global landscape, with geopolitical pressures and spiralling trade tensions, but with a robust domestic market with a solid GDP growth of 6.93 per cent in the quarter, supported by strong public investment and a trade surplus of $5 billion.
BANKING SECTOR STEPS UP ACTION PLAN TO BOOST GREEN CREDIT
At the workshop, on promoting the implementation of the plan organised by the State Bank of Vietnam (SBV), the GIZ Vietnam and the International Finance Corporation (IFC) in Hà Nội, the SBV’s Deputy Governor Đào Minh Tú said: “Green growth is no longer an option, but has become an urgent necessity, especially for developing countries like Việt Nam.
VIETNAM SETS UP COMMITTEE TO BUILD INTERNATIONAL FINANCIAL CENTRE
The Vietnamese government has reiterated its strong commitment to developing an international financial centre by announcing the establishment of the Steering Committee for Regional and International Financial Centre in Vietnam, chaired by Prime Minister Pham Minh Chinh. PM Chinh signed a decision dated May 20 approving the list of members for the committee.
VIỆT NAM’S FINANCIAL FIRMS HEAT UP WITH NEW WAVE OF M&A ACTIVITY
A new wave of mergers and acquisitions (M&A) is unfolding in Việt Nam’s financial sector, as commercial banks and securities firms accelerate their push into investment banking and asset management. The movement has intensified during the 2025 annual general meeting season. Among the most high-profile developments is Sacombank’s move to invest up to VNĐ1.5 trillion (US$57.8 million) in acquiring a controlling stake of over 50 per cent in a securities company.
OPEN-END FUNDS KEEP ATTRACTING CAPITAL INFLOWS
Though capital flows into open-end funds have shown signs of weakening, amid investors' caution over the US tariff change, such fund is the only group that has continuously maintained net inflows since the fourth quarter of 2023. According to Đỗ Hồng Vân, Head of the financial data provider FiinGroup’s Data Analysis Division, equity funds suffered the strongest capital withdrawal pressure.
GOVERNMENT PROPOSES 2% VAT REDUCTION ON SELECT GOODS AND SERVICES UNTIL 2026
The Government has proposed a 2 per cent reduction in the value-added tax (VAT) for goods and services currently taxed at 10 per cent, lowering the rate to 8 per cent. The proposal, which recommends maintaining this VAT reduction until December 31, 2026, was presented by Minister of Finance Nguyễn Văn Thắng during the ongoing National Assembly (NA) session.
