Assessing Vietnam's Tax Incentive Policies

Truong Ba Tuan and Le Quang Thuan
Tuesday, May 16, 2017

Over the last three decades, like many other developing countries, as part of its economic reform, Vietnam has introduced various forms of tax incentives to stimulate investment, export promotion and employment creation. The assessment of Vietnam tax incentive policies commissioned by Oxfam in Vietnam has showed that Vietnam has provided numerous and generous tax incentives, however the investment decision of investors depends more on political and economic stability, tax legal framework, infrastructure, and labor cost, much less on tax incentives.  There is also lack of data, transparency and evidences of the cost and benefit of tax incentives. Generous tax incentives have contributed to reduction of state budget revenue, meanwhile Vietnamese citizens are facing a high burden of health expenditure and many impoverished by health cost.

The purpose of this research is to provide an in-depth-discussion on the development of Vietnam's tax incentive regime and its effectiveness.