Nguyen Quoc Viet, Deputy Director of the Vietnam Institute for Economic and Policy Research (VEPR) said in an interview with Vietnam Financial Times that extending the payment deadline for certain taxes and land rent in 2025 will help enterprises and home businesses achieve more stable growth amid current challenges.
| Electronics production at 4P Company in Hung Yen Province. Photo: Pham Kien/The Hanoi Times |
The Ministry of Finance is seeking feedback on a draft decree to postpone payment deadlines for VAT, corporate income tax, personal income tax, and land rental fees in 2025 to support businesses and boost economic development with an estimated tax deferral of nearly VND102 trillion (US$4 billion). What are your thoughts on this move?
I fully agree with the steps taken by the government. According to the General Statistics Office, over 58,000 companies left the market in January 2025, an increase of 8.1% compared to the same period last year.
Other reports and economic experts suggest that the recovery of the service sector and the activities of households and individual businesses has not been uniform. In many urban centers, Vietnamese businesses are struggling to maintain operations.
Recent indicators show that enterprises, especially small and medium-sized enterprises (SMEs) and home businesses need time to perform well. They need support to overcome difficulties and achieve growth. The forthcoming decree is expected to reduce burdens, allowing businesses to focus their resources on production and operations.
Moreover, the National Assembly has revised up the economic growth for 2025 to 8% from 6.5%-7%. Achieving this will depend on harnessing growth drivers from SMEs and home businesses. Given the global economic uncertainties and looming trade conflicts, traditional growth channels such as exports and public investment may not work fully. Therefore, it becomes essential to rely on the existing domestic business environment.
Delaying tax obligations allows companies to retain funds for reinvestment to maintain their business and contribute to the country's 8% growth target.
Based on previous policy implementation, what are the key issues addressed for the forthcoming roll-out?
| Nguyen Quoc Viet, Deputy Director of the Vietnam Institute for Economic and Policy Research. Photo: daibieunhandan.vn |
I believe that the deferral policy needs to be enacted as soon as possible so that companies can plan for the deferred amounts in their operations. That is its real impact and benefit.
It is also important to ensure transparency and streamline procedures to reduce costs and save time and resources amid efforts to rationalize government operations, institutions, and policies.
What do you recommend to help support businesses in 2025 to achieve the 8% growth target?
| Electronics manufacturing at Hoa Lac Hi-tech Park. Photo: Pham Hung/The Hanoi Times |
I hope business support policies will become more focused, ensuring better linking among different economic sectors. This will help gradually move from a one-size-fits-all approach to more tailored support for enterprises and household businesses implementing strategies such as those outlined in Resolution 57, which aims to strengthen innovation and the application of science and technology.
In addition, fiscal and support policies need to better link supply and demand to stimulate consumer demand. This would help shift the production and consumption of domestic products toward a more sustainable, greener, and responsible approach.
At the same time, it is necessary to focus on creating new growth drivers based on domestic demand rather than solely relying on exports or public investment.
An impact assessment study should be carried out, leading to targeted investment. Vietnam can no longer maintain a policy of unfocused tax exemptions, deferrals, or reductions.
Thank you for your time.
