Vietnam Small Business Tax Policies Strain Compliance and Consumer Spending

A talkshow organized by Báo Người Lao Động on May 21 highlighted frequent tax filing errors by Vietnamese household businesses, including failure to report multiple business locations, not notifying bank or e‑wallet accounts, and mismatched revenue records. The Finance Ministry’s Circular 50 extends the deadline for registering business accounts to July 31, 2026, and officials urge use of the eTaxMobile app and separation of personal and business finances.

Economist Dr. Phạm Viết Thuận warned that these tax and fee burdens, combined with rising input costs and global fuel price volatility, have reduced domestic consumption and pressured small enterprises. He proposed a simplified tax scheme with annual brackets of VND 1‑5 billion, optional electronic invoicing, and a possible 0% VAT rate for essential goods. Extensions of fuel tax cuts and removal of certain fees were also suggested to stimulate demand and protect livelihoods of the estimated 30 million people supported by small business employment.