Vietnam accelerates tax reforms to meet EU requirements

The European Union recently added Vietnam to the list of jurisdictions with insufficient tax transparency, prompting Hanoi to develop a comprehensive action plan. According to Jin10, Vietnam’s leadership views this as a serious signal to accelerate efforts in international tax cooperation. Implementing changes to the country’s tax system has become a priority to restore its reputation in global financial circles.

Reasons for Vietnam’s Blacklisting

The European Union has created a list of countries that do not meet the latest standards of tax transparency. As a developing country experiencing rapid growth, Vietnam was included on this list due to certain shortcomings in exchanging tax information with foreign partners. This creates obstacles for international companies and violates the principle of fair tax competition in the global market.

National Strategy to Improve Transparency and Cooperation

Vietnam’s Ministry of Foreign Affairs has developed a detailed plan to adapt to the recommendations of the Organization for Economic Cooperation and Development (OECD). The plan involves expanding automatic exchange of tax information with developed economies, strengthening internal control over compliance with international standards, and signing new tax cooperation agreements. These steps aim to help Vietnam regain the trust of the international community and attract further foreign investment.

Significance for Vietnam’s Future Relations with the EU

Successful implementation of tax reforms in Vietnam will contribute to strengthening bilateral relations with the European Union and other partners. It demonstrates Vietnam’s readiness to adhere to global standards and to be a responsible participant in the international economic system.