Want to be in the loop?
subscribe to
our notification
Business News
MOF 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 per cent to 8 per cent for a number of goods and services to boost the economy.
According to the ministry's tax department, the government is to consider two options regarding VAT reduction.
The first one is slashing 2 per cent off the current 10 per cent VAT on a number of goods and services.
The second one is also slashing 2 per cent off the current 10 per cent VAT but excludes goods and services that were already under the effect of a previous VAT reduction as part of a government's policy to boost economic recovery after COVID-19.
Businesses have been long asking for additional support from the government to help speed up economic recovery and to cope with recent difficulties.
The HCM City Food and Foodstuff Association (FFA) said businesses have been struggling since the end of last year with rising interest rates, poor liquidity, increased risk in the bond and stock markets and higher input and logistics 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 supporting businesses and urged the government to extend the policy.
Similarly, the Vietnam Beverage Association (VBA) asked the government to extend the policy at least until the end of this year, saying while there has been some improvement in recent months it will take a long time for the beverage industry to fully recover after the pandemic.
The European Chamber of Commerce (EuroCham) said VAT reduction has played a key part in speeding up economic recovery, and has been a boon to businesses and consumers alike.
The chamber said it has helped with the government's efforts in keeping inflation in check, boosting consumption and encouraging businesses to invest in expanding their operations. Consumers have also benefited from the lower VAT, which is in line with the government's policy to aid the population post-pandemic.
Source: VNS
Related News
VIETNAM ECONOMY INVESTMENT
VIETNAM’S AGRO-FORESTRY-FISHERY EXPORTS JUMP NEARLY 30% IN JANUARY
Vietnam’s exports of agricultural, forestry and fishery products surged nearly 30% year-on-year in January 2026, driven by strong growth across major commodity groups and key export markets, according to the Ministry of Agriculture and Environment. Export turnover for the sector in January is estimated at nearly US$6.51 billion, up 29.5% from the same period last year, the ministry said at a regular press briefing on February 5.
VIETNAM MONTHLY STATISTICAL DATA
INFOGRAPHIC SOCIAL-ECONOMIC PERFORMANCE IN JANUARY OF 2026
The monthly statistical data presents current economic and social statistics on a variety of subjects illustrating crucial economic trends and developments, including production of agriculture, forestry and fishery, business registration situation, investment, government revenues and expenditures, trade, prices, transport and tourism and so on.
MEMBER CORNER / PROMOTIONS
PHUC VUONG DISTRIBUTES "TET REUNION" GIFTS: SENDING LOVE TO THE CONSTRUCTION SITES
On the afternoon of February 6th, amid the busy year-end atmosphere, Phuc Vuong Company organized the "Tet Reunion – Spring Connection" gift-giving event right at the construction site. This annual activity aims to honor the "dream builders" who have dedicated themselves to the company's growth. The General Director was present to personally express his sincere gratitude and hand over meaningful Tet gifts to the workers.
HOSPITALITY / TOURISM / ENTERTAINMENT
INTERNATIONAL ARRIVALS TO VIETNAM REACH NEW MONTHLY HIGH
International arrivals to Vietnam hit a new monthly record in January 2026, rising 21.4% from the previous month and 18.5% year-on-year, according to the National Statistics Office. Air travel continued to dominate, accounting for nearly 80% of all arrivals. Arrivals by land nearly doubled compared with the same period last year, while sea arrivals rose by about 30%, though they remained a small share.
PROPERTY / INDUSTRIAL ZONE
HCMC APPROVES 28 MORE LAND PLOTS FOR HOUSING DEVELOPMENTS
HCMC has approved 28 out of 30 proposed land plots for pilot housing developments, covering a combined area of more than 750,600 square meters, according to a newly adopted resolution. The approved sites are spread across multiple wards and communes, with a strong concentration in the city’s southern and eastern areas.
VIETNAM ECONOMY INVESTMENT
VIETNAM SEES STEADY FDI DISBURSEMENT BUT SLOWER EXPANSION IN JANUARY
Foreign direct investment (FDI) disbursement in Vietnam rose in January, while newly registered capital fell sharply, pointing to stable project implementation but slower investment expansion. Data from the Ministry of Finance showed that January FDI disbursement increased 11.26% year-on-year to US$1.68 billion, reflecting continued execution and expansion of existing foreign-invested projects.
Events Sponsors
