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VIETNAM
After years of institutional and economic reform, Vietnam’s poverty rate declined rapidly. In 1990, Vietnam was among the world’s poorest countries with a GDP per capita of $98. By 2010, GDP reached $1,000. Vietnam is now defined as a lower middle-income country by the World Bank. The government has made more firm commitments to opening the market and developing the private sector. Taxation has been one of the major reforms since the opening of the economy and the implementation of Doi Moi in Vietnam. Before the Fair Tax Monitor project, there was little information available on the effect of various tax policies in Vietnam and how these either disadvantage or benefit the country. The FTM revealed that Vietnam is doing quite well on the assessment, yet two areas of taxation can be improved quite a lot. Budget disclosure is not transparent enough and tax exemptions should be more carefully managed.Read the full country report here: Fair Tax Monitor Vietnam 2018
- 2018
- 2015
- 2016
Detail view
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PROGRESSIVE TAX SYSTEM
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Overall Progressivity
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Personal Income Tax
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Wealth Taxes
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Value Added Tax/Sales Tax
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Trade taxes
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Presumptive/Turnover Tax
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Corporate Income Tax
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SUFFICIENT REVENUES
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Tax Revenues
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Revenues from Extractive Industries
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Tax Payers
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EFFECTIVE TAX ADMINISTRATION
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Organization
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Administration
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Resources
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Oversight
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PRO-POOR PUBLIC SPENDING
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Agriculture
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Education
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Healthcare
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ACCOUNTABLE PUBLIC FINANCES
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Tax System Transparency
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Information Availability on Companies
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Audit
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Budget Documentation
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Citizens’ Engagement
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WELL GOVERNED TAX EXEMPTIONS
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Governance
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Transparency
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PROGRESSIVE TAX SYSTEM
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Overall Progressivity
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Personal Income Tax
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Wealth Taxes
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Value Added Tax/Sales Tax
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Trade taxes
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Presumptive/Turnover Tax
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Corporate Income Tax
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SUFFICIENT REVENUES
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Tax Revenues
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Revenues from Extractive Industries
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Tax Payers
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EFFECTIVE TAX ADMINISTRATION
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Organization
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Administration
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Resources
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Oversight
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PRO-POOR PUBLIC SPENDING
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Agriculture
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Education
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Healthcare
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ACCOUNTABLE PUBLIC FINANCES
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Tax System Transparency
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Information Availability on Companies
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Audit
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Budget Documentation
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Citizens’ Engagement
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WELL GOVERNED TAX EXEMPTIONS
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Governance
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Transparency
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PROGRESSIVE TAX SYSTEM7
The share of indirect taxes in total tax revenue has increased sharply to over 60% while direct taxes have fallen below 40%. This has a negative impact on the progressiveness of Vietnam’s tax system.
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Overall Progressivity3
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Personal Income Tax7
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Wealth Taxes7
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Value Added Tax/Sales Tax8
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Trade taxes8
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Presumptive/Turnover Tax10
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Corporate Income Tax7
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SUFFICIENT REVENUES8
Vietnam scores high on budget revenue completeness. A way to improve further would be to decrease reliance on land use fees, as it is not a sustainable source of revenue.
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Tax Revenues8
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Revenues from Extractive Industries8
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Tax Payers9
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EFFECTIVE TAX ADMINISTRATION9
The Vietnam government has devoted a lot of resources into the tax body, especially in the IT system.
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Organization10
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Administration10
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Resources10
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Oversight7
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PRO-POOR PUBLIC SPENDING6
Expenditures on basic public services in Vietnam such as education and health were fairly well evaluated. Education expenditure accounted for 18-20% of total state budget expenditure. On the other hand, expenditure on healthcare and agriculture does not meet international standards.
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Agriculture5
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Education7
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Healthcare5
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ACCOUNTABLE PUBLIC FINANCES5
Participation of people and social organizations in the formulation and implementation of tax policies is limited. Additionally, corruption remains a matter of concern, as well as budget disclosure transparency.
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Tax System Transparency8
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Information Availability on Companies2
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Audit5
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Budget Documentation0
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Citizens’ Engagement10
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WELL GOVERNED TAX EXEMPTIONS4
Tax exemptions in Vietnam are abundant, especially for corporate income tax. Many multinationals enjoy a tax rate of 10%, which is relatively low compared to the normal tax rate of 20%. Tax avoidance also frequently occurs.
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Governance6
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Transparency3
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