ENTERPRISES HURT BY COVID-19 PROPOSED FIVE MONTHS TAX PAYMENT LENIENCY

Enterprises and individuals directly affected by the novel coronavirus (COVID-19) would be allowed to pay value-added tax (VAT) or land rent five months late, according to the proposal of the Ministry of Finance.

In the draft decree extending the deadline for tax and land rent payment, the Ministry of Finance (MoF) assessed that most industries and sectors, especially micro- and small-sized enterprises, individuals, groups of individuals, production households, and businesses are affected by the COVID-19.

Therefore, the MoF proposes extending payment deadlines by five months to businesses, organisations, individuals, groups of individuals, and households directly affected.

The subjects eligible for this extension those working in agriculture, forestry and fishery production, food processing, weaving, clothing production, shoe and footwear production, rubber products production, manufacturing electronic products, computers, manufacturing and assembling automobiles (except for manufacturing and assembling cars with less than nine seats).

The extension also applies to rail, road, waterway, aviation, warehousing, and other supporting activities for transportation, accommodation, catering and other activities of travel agencies, as well as tour and support services.

In addition, micro- and small-sized enterprises defined in the Law on Support for Small- and Medium-sized Enterprises are also entitled to this policy.

Enterprises would be eligible for an extension on VAT payments in the first and second quarter of 2020. It is estimated that the payment of about VND22.6 trillion ($982.6 million) of tax from enterprises will be extended for five months.

In addition, about VND3 trillion ($130.43 million) of VAT and personal income tax payable in 2020 by individuals, groups of individuals, and business households are also extended to December 15.

In addition, the MoF proposed to extend the land rent payments by five months for payments due in the first quarterof 2020. Extended land rent is expected at about VND4.5 trillion ($195.65 million). However, the revenue of the state budget in 2020 will not decrease due to business households and individuals still having to pay for the budget before October 31.

In spite of the extended schedule, taxpayers still have to declare and submit tax returns according to current regulations.

Source: VIR

Related News

VIETNAM ECONOMY INVESTMENT

AGRICULTURAL, FORESTRY AND FISHERY EXPORTS REACH NEARLY $49.3 BILLION AFTER EIGHT MONTHS

Asia remained Việt Nam’s largest export market, accounting for 45.5 per cent of total market share, with exports to the region increasing 11.3 per cent year on year. Việt Nam’s agricultural, forestry and fishery exports totaled nearly US$49.3 billion in the first eight months of this year, up 7 per cent year on year, maintaining growth momentum despite divergent trends among major product groups.

Sep 09, 2026

BANKING / FINANCE / INSURANCE / TAX

BANK DEPOSITS OVERTAKE CREDIT GROWTH IN LATE AUGUST

Vietnamese đồng deposits at banks grew faster than credit by late August, reversing a trend seen earlier this year and easing some short-term liquidity pressure, although banks continue to face high funding costs amid strong demand for loans. Speaking at the Government’s regular meeting, Trần Quốc Phương, deputy minister of finance, said that as of August 22, Vietnamese đồng deposits at credit institutions had increased 8.77 per cent from the beginning of the year, slightly exceeding the 8.38 per cent growth in Vietnamese đồng lending.

Sep 09, 2026

VIETNAM ECONOMY INVESTMENT

FOREIGN CAPITAL SEEKS STRONGER FOOTHOLD IN VIỆT NAM THROUGH M&A

Foreign investors carried out 1,815 capital contribution and share purchase transactions in Việt Nam in the first seven months of 2026, with total capital exceeding $6.5 billion. While the number of transactions fell 8.4 per cent year-on-year, their value rose 61.6 per cent. Rather than investing from scratch to build new production facilities, many foreign investors are choosing to acquire stakes in existing Vietnamese companies as a faster way to establish a foothold in the market.

Sep 09, 2026

GARMENT / TEXTILE

MANUFACTURING PRODUCTION RISES AT FASTEST PACE IN JUST OVER TWO YEARS

Growth in the Vietnamese manufacturing sector continued to strengthen midway through the third quarter of the year. The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 53.3 points in August, up from 52.9 points in July and above the 50.0 no-change mark for the fourteenth consecutive month. The latest strengthening of business conditions in the sector, as revealed on September 3, was the most pronounced since February.

Sep 09, 2026

TECHNOLOGY

TECHNOLOGY, INNOVATION DRIVE CHEMICAL INDUSTRY TOWARDS HIGHER-VALUE GROWTH

Technological innovation, automation and digital transformation are becoming central to the chemical industry as companies seek to move towards higher-value products, strengthen domestic technological capabilities and pursue greener, more sustainable production. The shift is being accelerated by Politburo Resolution No. 57-NQ/TW on breakthroughs in science, technology, innovation and national digital transformation, alongside Việt Nam's chemical industry development strategy to 2030 with a vision to 2040.

Sep 09, 2026

VIETNAM ECONOMY INVESTMENT

FDI INFLOWS RISE 55.4 PER CENT ON YEAR

According to the Foreign Investment Agency under the Ministry of Finance, total foreign direct investment (FDI) registered in Vietnam reached $40.63 billion as of August 31, up 55.4 per cent year-on-year. All three components – newly registered capital, additional capital injected into existing projects, and foreign investors’ capital contributions and share purchases – recorded increases.

Sep 09, 2026