Tax Authorities Avoid Indiscriminate Penalties

Key pointsA large-scale construction project is underway in preparation for APEC 2027, testing the capabilities of Vietnam's construction industry. Notably, 17 hotels are being built on Phu Quoc Island, expected to provide around 7,000 rooms, which is anticipated to boost MICE tourism and luxury resort development. Additionally, expansion work on the international airport is ongoing, preparing to welcome over 10,000 international delegates in 2027.
Business impactJapanese companies should closely monitor the growth of Vietnam's construction industry and explore opportunities, particularly in tourism and infrastructure investment.

Key pointsMr. Ho Thuy Anh, born in 1992 and previously working in the LED equipment sector for semiconductors in the US, established the startup IBAS in Vietnam utilizing microbiological technology. He provides a 2kg raw material kit that enables producers of tonkatsu to generate 250 liters of microorganisms locally, aiming to reduce transportation costs and alleviate farmers' burdens. IBAS has been selected as a finalist for the 2026 Creative Young Entrepreneur (CYE) competition.
Business impactThis business model aims to reduce costs and improve efficiency in the agricultural sector, making it worthwhile for Japanese companies to pay attention to and consider adopting such new technologies and business models. In particular, agriculture-related companies should advance product development tailored to local needs.

Key pointsHanoi is accelerating the development of transportation infrastructure in celebration of the 72nd anniversary of its liberation. Notably, construction on Ring Road 2.5 is progressing, aimed at improving traffic flow and expanding urban development space. Citizens are hopeful for the completion of the new road, anticipating an improvement in quality of life.
Business impactJapanese companies are expected to benefit from enhanced logistics and commuting efficiency due to the progress in infrastructure development. Improved transportation infrastructure will be a crucial factor for both manufacturing and service industries.

Key pointsVietnam's tax authorities have instructed local tax offices not to apply indiscriminate penalties for delays or deficiencies in tax filings. Strict measures will only be taken in cases of confirmed intentional tax evasion or misconduct, with prior warnings and guidance required. This aims to support companies in managing legal risks and enhance the transparency of tax procedures.
Business impactJapanese companies may experience reduced risks in tax filings due to the change in tax authority policies. A review of internal processes to strengthen tax compliance will be necessary.

Key pointsThe police in Ho Chi Minh City have arrested 21 executives involved in tampering with environmental data. They are accused of illegally altering monitoring and analysis results to meet standards. The investigation has seized 288 boxes of documents, 163 CPUs, and environmental analysis equipment. This has compromised the integrity of environmental data and poses potential negative impacts on the local community. The investigation is ongoing, with efforts to identify additional individuals involved.
Business impactThis incident serves as a reminder for companies in the environmental sector about the importance of regulatory compliance. Japanese companies need to ensure the accuracy of environmental data and strengthen their compliance systems. In particular, companies conducting environmental monitoring are required to review their internal controls.

Key pointsIn Vietnam, the transition to eco-industrial parks is advancing, focusing on efficient resource use, clean production, industrial symbiosis, and emission reduction. The implementation of the EU's Carbon Border Adjustment Mechanism (CBAM) starting in 2026 will impose new requirements on companies participating in international supply chains. Consequently, the development of green infrastructure is urgent, and companies are being called to enhance renewable energy and energy efficiency.
Business impactJapanese companies need to pay attention to the development of green industrial parks and consider infrastructure investments to meet ESG standards. Particularly, energy efficiency and emission data management will be critical competitive factors, necessitating business strategies that prioritize these elements.

Key pointsIn Vietnam, a cleanup campaign is underway for 72,000 tax numbers prior to 2025, enhancing data accuracy regarding businesses. In Ho Chi Minh City, hundreds of thousands of tax numbers are being organized, improving information transparency. This is expected to better reflect the actual business activities.
Business impactFor Japanese companies, the cleanup of tax numbers may strengthen tax compliance and contribute to accurate financial reporting. Particularly, the organization of tax-related data will facilitate access to necessary information for management decisions.

Key pointsHanoi faces challenges due to small business sizes and public management issues, necessitating a shift in its growth model. To leverage human resources, science and technology, and market advantages, it is essential to promote business development and create an environment that nurtures talent. While Hanoi's GRDP increased by 8.85% over nine months in 2026, achieving the annual target of 11% requires a 16.5% growth in the fourth quarter. Currently, 96.2% of businesses employ fewer than 50 people, and the pace of job creation is not keeping up with the increase in the number of businesses. Traffic congestion and environmental issues also impact business activities.
Business impactJapanese companies need to focus on Hanoi's growth strategy and strengthen efforts to utilize local talent and enhance corporate competitiveness. It is particularly important to consider specific measures aimed at expanding business size and improving productivity.

Key pointsVietnam's coffee exports are expected to reach 1.45 million tons valued at $6.6 billion by September 2026, with a 16.2% increase in volume compared to the previous year, although value has decreased by 6.7%. The position of Robusta coffee is being strengthened, with efforts underway to improve quality.
Business impactJapanese companies are required to review quality management and marketing strategies to enhance competitiveness in Vietnam's coffee market. Particularly, product development tailored to the needs of export destinations is crucial.