Vietnam's New Tax Decree Drives Business Evolution, Challenges Household Enterprises
Vietnam's business landscape is evolving with improved legal and investment policies, as noted by Nguyen Anh Tuan, chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE). A key development is Decree No.70/2025/ND-CP, which aims to modernise tax management and bring household businesses into a stricter, more transparent framework.
VAFIE held a seminar on September 26 to update members on these changes. The decree, while significant, presents challenges for smaller household businesses in implementation. Many companies, particularly in consumption goods, have seen revenue declines due to its impact on distribution systems heavily reliant on these businesses.
The 'Deutsches Institut für Normung (DIN)' also held a seminar in September 2025, focusing on updates and analysis of invoicing and document regulations. Experts proposed a one-year transition period with no penalties, raising the revenue threshold for applying POS-based e-invoices, and implementing tax exemptions/reductions for the first 6-12 months to ease the transition.
Despite challenges, the decree is a step towards modernising Vietnam's tax management. Businesses are urged to quickly adapt to the new regulations to ensure compliance and seize opportunities. Tax authority support is limited, highlighting the need for increased guidance and understanding among household businesses, with nearly 90% currently unaware of their e-invoice obligations.
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