The Vietnamese government issued Decree No. 72/2024/ND-CP on 30 June 2024, which mandates an additional reduction in the VAT rate from 10% to 8% for various goods and services in the second half of 2024.

Effective from 1 July 2024, the government extended the 2% VAT reduction for goods and services subject to the standard rate until 31 December, 2024.

The reduction generally applies to goods and services typically subject to the standard 10% VAT rate, with exceptions for certain sectors. These exceptions include telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, and chemical products, as detailed in Appendix I of the Decree.

Additionally, products, goods, and services subject to excise (special consumption) tax are excluded, as listed in Appendix II of the Decree. Information technology services, as defined by the law on information technology, are also exempt, with details provided in Appendix III of the Decree.

On 13 June 2024, the National Assembly Standing Committee provided a positive evaluation of the draft resolution proposing an extension of the VAT rate reduction. The resolution was submitted for consideration during the 7th session of the 15th term of the National Assembly.

In May 2024, the Vietnamese government approved a draft proposal to extend the VAT reduction from 10% percent to 8% on selected goods and services from 1 July to 31 December, 2024. The proposal was then submitted to the National Assembly for approval for the continuation of the 2% VAT reduction for the latter half of the year.