Tax cuts, institutional reforms help businesses grow
A proposed 30 percent income tax cut for smaller businesses and and enterprises in 2026–2027 could ease financial pressure while supporting investment, expansion and job creation amid Vietnam’s drive for double-digit growth.
Vietnam's Ministry of Finance has proposed a 30 percent income tax cut for smaller businesses and enterprises in 2026-2027, aimed at supporting investment, expansion, and job creation. The policy has received broad support from the business community, as it could provide additional cash flow for investment in machinery, production expansion or job retention.
While tax cuts alone cannot unlock the full potential of businesses, when combined with institutional reforms that reduce compliance costs and streamline procedures, the policy could accelerate the transition of business households into formal enterprises and improve the competitiveness of the private sector.
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