The Vietnamese National Assembly has resolved to extend the deadline for value-added tax reduction until the end of June 2024 to boost the economy.

The Vietnamese National Assembly, during its 6th session on November 29, 2023, passed a resolution further extending the reduced value-added tax (VAT) period for certain goods and services until the end of June 2024 to support the economy.

Since the beginning of 2022, the government has lowered the VAT rate from 10% to 8% to stimulate domestic consumption and production, given that Vietnam’s export-dependent economy is facing pressure due to a global slowdown in demand.

According to statistics released by the Vietnamese government on November 29, 2023, exports for the year up to November 15 have decreased by 6.4%, reaching $306 billion. This decline is primarily attributed to the ongoing impact of weak global demand, affecting the shipment volumes of products such as clothing, smartphones, and electronic goods. Hence, the extension of the tax reduction period is deemed necessary.

Source: Vietnam