Vietnam’s National Assembly has approved an extension of the VAT reduction from 10% to 8% for certain goods and services until 31 December 2026, expanding coverage to include transport, logistics, and IT sectors.
Vietnam’s National Assembly (NA) approved a resolution on 17 June 2025, extending the reduction of the value-added tax (VAT) rate from 10% to 8% for specified goods and services from 1 July 2025 through 31 December 2026.
This announcement was made by the Vietnam News Agency on the same day.
The measure, passed during the Assembly’s 9th session with 94.6% of deputies in favour, builds on earlier temporary VAT reductions and aims to support economic activity.
The reduced rate applies to goods and services outlined in Clause 3, Article 9 of the Law on VAT 48/2024/QH15, but excludes sectors such as telecommunications, finance, banking, securities, insurance, real estate, metal products, mineral products (excluding coal), and those subject to special consumption tax (except petrol).
The new resolution expands the scope of eligible sectors to include transportation, logistics, and information technology products and services—areas not covered under previous VAT reductions.
The government estimates the extension will reduce state budget revenue by approximately VND 39.54 trillion (USD 1.58 billion) in the second half of 2025 and VND 82.2 trillion in 2026. Despite this, authorities anticipate the measure will stimulate production and business operations, helping to offset revenue impacts over time.
