Recent Tax Reforms Impose Heavy Burden on Businesses

Key pointsIn Vietnam, four new decrees and five circulars regarding tax regulations have been announced, all set to take effect the following day. This requires businesses to rapidly adapt to significant legal changes, with small enterprises particularly affected. Tax professionals are also struggling with the complexity of the regulations, which are noted to require considerable time in practice. There is growing anxiety regarding the increased obligations for tax declarations.
Business impactJapanese companies need to reassess their tax department structures to respond swiftly to these tax changes. It is essential to stay informed about regulatory updates and implement appropriate measures.

Key pointsThe Ministry of Construction of Vietnam has instructed relevant agencies and the project management bureau to consider an investment plan for the six-laning of the My Thuan-Can Tho Expressway, which is a crucial route connecting Ho Chi Minh City and the Mekong Delta region.
Business impactInfrastructure development directly impacts logistics and transportation costs, making it a significant concern for Japanese companies. In particular, improvements in transportation infrastructure can enhance business efficiency.

Key pointsA company in Hanoi has been sued by the prosecution for issues related to unpaid social insurance. Although the company reported social insurance for five employees, it has failed to make payments for an extended period, affecting the rights of the employees. The prosecution is demanding that the company fulfill its social insurance obligations.
Business impactThe issue of unpaid social insurance poses legal risks for companies. Japanese companies are required to manage social insurance properly and ensure compliance with regulations.

Key pointsThe tax authority in Vietnam announced that it aims to complete tax number closure procedures within three business days if companies submit tax documents and pay their taxes in full. A representative from the tax authority indicated plans to allocate resources to facilitate taxpayers in processing their tax numbers smoothly by the end of the year. However, it is important to note that procedures will not proceed if there are unpaid taxes.
Business impactThis new expedited procedure has the potential to enhance tax management efficiency for Japanese companies. Companies that have been taking a long time with tax procedures need to act promptly.

Key pointsVietnam's Ministry of Transport has strengthened safety standards for child car seats and designated two testing organizations. Starting July 1, 2024, the use of safety seats will be mandatory for children under 10 years old or shorter than 1.35m. Drivers may face warnings for non-compliance. The new regulations aim to enhance traffic safety.
Business impactThis regulation requires automobile manufacturers and dealers to comply with child seat safety standards. Japanese companies are expected to establish systems to verify product compliance and obtain necessary certifications.

Key pointsThe Road Management Bureau I is introducing specialized survey vehicles to collect current data on Ho Chi Minh roads, establishing a foundation for the maintenance plan for 2027. This technology will enable the assessment of road conditions and the selection of appropriate repair methods, ensuring safe transportation.
Business impactJapanese companies should monitor this development and assess its impact on related transactions, contracts, and local operations.

Key pointsKeppel's net profit for the first half of 2026 decreased by approximately 60%, falling below 155 million SGD. This decline is primarily due to a loss of 375 million SGD in its non-core investment portfolio. In Vietnam, the company has over 10,100 unsold homes and plans to launch three projects in the market over the next six months. Revenue reached 3.8 billion SGD, a 25% increase compared to the same period last year, but profits have significantly decreased, particularly due to the decline in asset value of aging drilling equipment.
Business impactFor Japanese companies, Keppel's profit decline indicates risks associated with real estate investment in the Vietnamese market. The high number of unsold homes may impact future sales strategies and cash flow. The investment sector needs to closely monitor market trends and consider appropriate responses.

Key pointsMasang Consumer has penetrated approximately 98% of households in Vietnam through brands like CHIN-SU and Nam Ngư. Recently, the company was listed on HOSE and joined the VN30 index. It was also added to FTSE Russell's FTSE Global All Cap, increasing its connections with domestic and international investors.
Business impactMasang Consumer's growth suggests investment opportunities for Japanese companies. Particularly, as competition intensifies in the consumer goods market, related businesses need to monitor market trends and reassess their strategies.

Key pointsVietnam's printing and packaging industry is facing intense competition from FDI companies and stringent technical barriers in the US and EU markets, necessitating a strategic shift. Domestic companies have production costs approximately 15% higher than FDI firms, with 80% using traditional technologies, leading to decreased profit margins. The 'VietnamPrintPack 2026' event, scheduled from September 16 to 19, 2026, in Ho Chi Minh City, will showcase the latest automation technologies, aiming to enhance corporate competitiveness.
Business impactJapanese companies need to consider adopting the latest technologies to maintain competitiveness in the Vietnamese market. Particularly, investment in technology is crucial for reducing manufacturing costs and complying with environmental standards.

Key pointsVietnam aims for net-zero emissions by 2050, necessitating high-tech production efforts in the agricultural sector. Consequently, the promotion of green finance is emphasized, with domestic financial institutions expanding loans for environmentally friendly agricultural projects. Notably, banks such as BIDV and VCB have introduced green loan programs to support sustainable agricultural development.
Business impactJapanese companies are required to establish environmentally conscious production systems through the utilization of green finance. Particularly, businesses engaged in agriculture need to reassess loan conditions and project selection criteria.

Key pointsOn September 7, 2026, the Da Nang City Department of Finance announced the acceptance of an investment approval application for a 1,200ha ginseng root cultivation project proposed by Thuan Hai Agricultural Company. This project aims to produce and process ginseng roots and high-value medicinal plants, with an operational period planned for 50 years.
Business impactJapanese companies should monitor this development and assess its implications for related transactions, contracts, and local operations.

Key pointsThe number of tourists from Russia to Vietnam is expected to reach 1.5 million in 2026, marking a record high. This reflects the growth of Vietnam's tourism industry and the increasing importance of the Russian market. With the recovery of the tourism sector, economic exchanges between the two countries are also expected to become more active.
Business impactFor Japanese companies, the growth of the tourism industry presents new business opportunities. In particular, the travel and hospitality sectors will need to strengthen their approach to the Russian market.