Vietnam tax authority and small businesses grapple with compliance and travel‑ban measures

The Vietnamese General Department of Taxation explained that travel bans are imposed only after extensive debt‑recovery steps, chiefly targeting entities with long‑standing tax arrears or those that have abandoned their registered address. As of the latest figures, about 105,000 business representatives face travel restrictions linked to roughly VND 61 trillion in unpaid taxes, while the agency has recovered over VND 4 trillion from more than 13,000 taxpayers.

A separate survey by the Vietnam Chamber of Commerce and Industry (VCCI) highlighted that the country’s 6.1 million small‑business households generate modest profits, with 81.5% reporting reduced turnover and only 1.9% meeting profit expectations for 2025. The survey revealed widespread concerns about tax compliance: 71.2% find procedures complex, 68.3% fear penalties, and more than half struggle with electronic invoicing. Nearly half consider current tax rates “relatively high” or “excessively high,” prompting many households to maintain existing scales rather than expand.

Both reports underscore the challenges faced by Vietnam’s micro‑enterprises in navigating tax obligations and the government’s efforts to tighten enforcement while seeking to simplify procedures.