VEAM must repay VND18.44 billion due to incorrect tax declaration

VEAM must implement corrective measures due to incorrect declarations, resulting in a shortfall in corporate income tax payable for 2010 as stipulated by the Law on Tax Administration and related documents.

However, because the statute of limitations for administrative penalties for tax violations expired, the authorities did not apply administrative penalties but only required the implementation of corrective measures as prescribed.

Specifically, VEAM is required to pay an additional $635,600 in outstanding corporate income tax to the state budget. At the same time, the company must pay an additional $102,000 in late payment penalties. The total amount to be paid according to the decision is over $737,600.

VEAM must complete the repayment within 10 days after receiving the decision. Failure to comply within the deadline may result in enforcement action as prescribed by law. In addition, VEAM still has the right to appeal or appeal against this decision.

It is currently a state-owned enterprise, with the Ministry of Industry and Trade acting as the representative owner, holding approximately 88.47 per cent of the charter capital.

The company operates in the mechanical engineering and vehicle manufacturing sectors, but the majority of its profits over the years have come from investments in leading vehicle and motorcycle joint ventures in Vietnam.

In 2025, the company recorded revenue of nearly $180 million, a 9 per cent increase compared to the previous year. Profits from joint ventures and associated companies reached $265 million, a slight decrease of 2 per cent. On the stock market, VEAM shares are currently trading around $1.38 per share, corresponding to a market capitalisation of over $1.84 billion.

GELEX fined to more than $53,000 for erroneous tax declaration The Hanoi Department of Taxation has just issued a fine of more than VND181 million ($8,000) to Vietnam Electrical Equipment JSC (GELEX) for erroneous tax declaration, along with over VND1.03 billion ($45,400) in tax arrears and late payment fees.

Vietnam integrates enterprise tax declaration into National Public Service Portal The General Department of Taxation on April 29 completed the upgrade of the electronic taxation application to integrate enterprise and individual tax declaration into the National Public Service Portal with the aim for further facilitating tax performance.

Obstacles get in the way of e-tax payments The launch of e-tax was expected to facilitate tax declaration and tax payment, but some firms are still finding it difficult to fulfil their financial duties via the online portal.

Household businesses prepare for e-filing as lump-sum tax ends The Tax Department is stepping up efforts to help household businesses adopt electronic tax filing ahead of the abolition of the lump-sum tax regime.

Another 42 per cent cap their tolerance for tariff-related cost increase at 40 per cent–a threshold far lower than expected, according to the survey published on June 4.

This is Deloitte’s fifth study on the evolving complexity of the tax and business environment of the region. With the evolvement of the business landscape, this year’s study takes a sharper, more executive-focused lens, capturing perspectives from tax leaders and C-suite decision makers. The result is a concise view of what shapes business decisions today, and how tax and tariff considerations influence strategic decisions.

Deloitte’s 2025 Asia Pacific Tax & Tariff Complexity Survey, conducted between August 1 to September 21, 2025, has received inputs from 363 senior executives from a diversified industrial background across the region.

Instead of relying heavily on price adjustments to absorb tariff shocks, executives now view them more as short‑term stopgaps rather than viable long‑term strategies. This shift in mindset reflects a broader recalibration: leaders are increasingly prepared to rethink their operating models when cost pressures intensify, signalling a more proactive and strategic approach to supply‑chain resilience.

Nearly 70 per cent of respondents indicated that their primary focus in supply chain decisions has shifted from minimising costs to focusing on reliability, stability, or strategic alignment. This integrated approach has encountered several key internal obstacles beyond macroeconomic volatility.

More than half of those surveyed cited operational challenges as stemming from internal gaps–insufficient processes, limited data capabilities, critical skill shortages, and workforce downsizing–making up 51 per cent of the total. As a result, transforming the tax operating model has moved rapidly up the C-suite agenda. Operational readiness is no longer a baseline expectation, but a true competitive differentiator.

“Vietnam is one of the markets directly impacted by shifts in regional supply chains, so the survey findings closely reflect what we have observed while working with businesses here,” said Bui Tuan Minh, Deloitte Vietnam Tax & Legal leader.

“Many business leaders are placing greater emphasis on reliability and operational readiness rather than focusing solely on tax costs. Amid significant changes to the domestic tax and legal framework, we believe that elevating the tax function from compliance to strategic decision support will help businesses respond more effectively to future uncertainties.”

To help organisations navigate this complexity, Deloitte introduces the Strategic Response Compass. The compass orients decisions around three critical pillars: Cost Signals (pricing and cash flow sensitivity as catalysts for change), Alignment (supply chain and stakeholder ecosystems as connective strength), and Enablement (digital and operational readiness as engines of transformation).

Eunice Kuo, Deloitte Asia Pacific Tax & Legal leader, said that at the regional level, “tax and tariff volatility has shifted from a background issue to a central factor for any business. Treat cost signals as early warnings, align ecosystems beyond cost, and embed digital enablement at the core. Those that act on these imperatives will not only withstand shocks but will transform volatility into foresight, momentum, and lasting competitive advantage.”

Tax sector eyes 20 per cent GDP revenue mobilisation in 2026-2030 The Finance Ministry has tasked the tax sector with boosting budget revenue mobilisation, expanding taxation in the digital economy and accelerating smart tax administration reforms for 2026-2030.

Tax circular amendments aim to ease import-export procedures The Ministry of Finance is accelerating reforms to modernise import-export tax administration, expand digitalisation, and create a more transparent regulatory framework.

Vietnam moves towards data-driven tax administration Vietnam’s tax system is being urged to accelerate the adoption of big data, AI and digital technologies across the entire tax management process. The long-term goal is to build a modern, intelligent and internationally aligned tax governance system.

Vietnam’s economic growth slowed to 7.83 per cent on-year in 1Q26 from 8.46 per cent in 4Q25, but still beat both UOB’s 7 per cent forecast and Bloomberg’s 7.6 per cent consensus.

Growth was supported by manufacturing, construction and services, underpinned by strong export demand (19.1 per cent on-year) and realised foreign direct investment inflows (up 9.1 per cent on-year to $5.41 billion), as firms continued diversifying supply chains amid changing global trade rules.

Recent data, though, point to a mixed near-term outlook as higher energy costs weigh. Manufacturing improved in May, with the Purchasing Managers’ Index rising to 52.8 from 50.5 in Apr and 49.8 a year earlier, while the output index surged to 55.6.

Inflation accelerated to 5.6 per cent in May, its highest level in six years. Manufacturing output growth slowed to 9 per cent on-year from 10 per cent in April, bringing average growth in the second quarter to 9.5 per cent, down from 11 per cent in the first quarter.

Export growth eased to 18 per cent on-year in May from 21 per cent in April, while import growth accelerated to 33.8 per cent from 32.5 per cent. As a result, the trade balance recorded a deficit of $12.7 billion in the first five months of the year, compared to a surplus of nearly $5 billion in the same period of 2025, marking the widest gap in almost three decades.

UOB expects pressure on the balance of payments to persist. Large-scale infrastructure and transport projects are likely to drive demand for imported machinery, while elevated oil prices will increase energy costs. According to the bank’s simulations, if crude oil averages $100 per barrel for six to 12 months, Vietnam’s energy import bill could rise by around 40 per cent, or $5.2 billion, in 2026. Under the same scenario, the current account surplus could narrow by about 20 per cent, or $6.5 billion, from an estimated $33 billion in 2025.

Despite near-term challenges, Vietnam’s medium-term ambitions remain highly ambitious. In April, the National Assembly approved a development agenda for 2026–2030 targeting average annual GDP growth of at least 10 per cent. By 2030, the government aims to achieve upper-middle-income status, build a modern industrial base, rank among the world’s 30 largest economies, and raise GDP per capita to $8,500. By contrast, the World Bank forecasts growth of 6.8 per cent in 2026 and inflation of 4.2 per cent, citing the impact of the Middle East conflict on trade, fuel prices, and business activity.

“In our view, downside risks from energy prices and possible shifts in US tariff policy remain significant, though external demand has held up so far, supported in part by the global AI build-out. On balance, we continue to expect growth to moderate to 7 per cent in 2026. The most challenging period is likely in 2Q26-3Q26, with growth averaging about 6.7 per cent,” the UOB report noted.

A key concern for the State Bank of Vietnam (SBV) is inflation, which averaged 4.3 per cent on-year in the first five months, close to its 4.5 per cent target, and the SBV expects it could rise to 5.5 per cent this year. “As SBV monitors downside pressure on the VND, its preference is likely to keep policy rates steady,” UOB reported.

Separately, the SBV has urged banks to lower lending rates to support borrowers, while fiscal measures are deployed, including extending the zero-rate tax on petrol and selected fuel products until the end of June. Even so, some local banks have raised deposit rates amid competition for liquidity as credit demand rises. Outstanding loans reached more than $76 billion as of April 28, up 18.26 per cent on-year, while total liquidity grew a slower 7.7 per cent on-year.

World Bank projects Vietnam’s growth to moderate to 6.8 per cent in 2026 While headwinds are expected to temper the pace of expansion, World Bank’s latest Vietnam Economic Update, released on May 15, projects growth will moderate to a 6.8 per cent in 2026, following an 8 per cent expansion in 2025.

OECD projects GDP growth of 6.5 per cent for Vietnam this year Vietnam’s GDP is projected to grow by 6.5 per cent in 2026 and 6.2 per cent in 2027, a slowdown amid uncertainty from the Middle East conflict and US trade policy, the Organisation for Economic Co-operation and Development has said.

Government urged to expand public procurement to create innovation Vietnam cannot continue relying primarily on capital expansion and labour growth if it wants to achieve double-digit economic growth, experts have said. Instead, the country needs to create stronger market demand for science, technology and innovation through concrete mechanisms.

The exhibition took place from May 26 to 30 at the IMPACT Muang Thong Thani Exhibition and Convention Centre in Bangkok, bringing together more than 3,300 exhibitors from over 60 countries and territories. Asia Ingredients Group’s (AIG) participation underscores its growth trajectory and efforts to build a globally recognised brand.

The event attracted more than 88,000 visitors from 140 countries and territories. Widely regarded as one of the most influential trade exhibitions in the Asia-Pacific region, it serves as a strategic meeting point for stakeholders across the global food and beverage supply chain.

Marking its sixth participation at the exhibition, AIG made a strong impression with its diverse portfolio of value-added agricultural products, including tropical fruits, coconut-based products, cassava starch, aloe vera, nata de coco, and natural essential oils. All products meet stringent international standards and are well aligned with the growing global demand for sustainable and environmentally friendly consumption.

AIG’s ingredient solutions garnered significant attention from importers, distributors, and business partners from Europe, Japan, South Korea, the Middle East, and the United States.

At THAIFEX-Anuga Asia 2026, Bruns Udo, founder and CEO of Germany-based UB thirsty GmbH, said: “AIG’s products meet European market standards, particularly its coconut and aloe vera ingredients. With its well-established and strategically invested manufacturing system, AIG has the capacity to develop new trends for international markets.”

As one of Vietnam’s pioneering enterprises committed to enhancing the value of the country’s agricultural products through deep processing, quality standardisation, and deeper integration into global supply chains, AIG continues to strengthen its capabilities and competitiveness, advancing its ambition of becoming an internationally recognised brand.

After nearly 25 years of development, AIG has undergone a remarkable transformation, evolving from a raw material distributor into a manufacturer of natural ingredients and a provider of integrated ingredient solutions for the life sciences industry.

With a vision of bringing Vietnam’s value-added agricultural products to global markets, AIG has pioneered a fully integrated value chain spanning raw material sourcing, manufacturing, research and development, and international trade promotion. This model is designed to deliver optimal value to customers and partners while contributing to the sustainable development of Vietnam’s agricultural sector.

By integrating every stage of the value chain, AIG can maintain greater control over raw material quality, enhance its product innovation capabilities, and meet increasingly stringent global standards. The model also serves as a critical foundation for strengthening the group’s competitiveness, expanding its international footprint, and elevating the presence of Vietnamese brands within the global ingredient supply chain.

Currently, AIG has built an ecosystem of more than eight member companies specialising in ingredient solutions for a wide range of industries. Its products are exported to more than 50 countries and territories worldwide. The group is also a trusted partner of leading global brands, including DSM-Firmenich, James Farrell, AAK, Tate & Lyle, PanTheryx, Givaudan, Darigold, and Ingredion.

The groundbreaking ceremony of Asia Coconut Processing Plant II

AIG continues to accelerate investments in production capacity and advanced processing technologies for agricultural ingredients.

On May 11, the group broke ground on the Asia Coconut Processing Plant II, a key initiative in its strategy to expand its portfolio of value-added coconut products. With a total investment of nearly VND630 billion ($24.2 billion), the Asia Coconut Processing Plant II is expected to commence operations in the first quarter of 2027.

Upon completion, AIG will own the largest coconut processing network in Vietnam, supporting its vision of positioning the country as a leading global hub for the processing and export of high-quality agricultural ingredients.

At the groundbreaking ceremony, AIG also announced a partnership with the International Finance Corporation, a member of the World Bank Group, to develop environmental, social, and governance standards and establish internationally aligned emissions management and reporting systems. The initiative aims to meet increasingly stringent global requirements for sustainability and supply chain transparency.

At the same time, AIG has continued to strengthen engagement with international partners as part of its ambition to build a globally competitive enterprise.

In April, the group welcomed Masayuki Omoto, president and CEO of Marubeni, and his delegation for discussions on long-term and sustainable cooperation opportunities.

Through continuous investment, strategic international partnerships, and a commitment to innovation and sustainability, AIG is steadily advancing its goal of becoming a global ingredient solutions provider while enhancing the value and competitiveness of Vietnamese agricultural products on the world stage.

AIG and Marubeni partnership set to integrate Vietnam’s agricultural supply chain with global markets

Through its unwavering commitment to innovation, green growth, and continuous value creation over nearly 25 years, AIG has firmly established itself as a top industry brand and is steadily advancing towards international stature, contributing to Vietnam’s ambition of becoming a global hub for the processing and supply of high-quality agricultural products and ingredients.

Asia Ingredients Group breaks ground on coconut processing plant On May 11, Asia Ingredients Group officially broke ground on the Asia Coconut Processing Plant II at Long Phuoc Industrial Cluster in Vinh Long province.

Since Directive No.38/CD-TTg was issued on May 5, total fines have exceeded VND12 billion ($480,000), according to Tran Le Hong, deputy director general of the National Office of Intellectual Property of Vietnam under the Ministry of Science and Technology (MST). The ministry has established a monitoring mechanism to compile daily reports on violations nationwide to support the guidance and management work of the government.

Tran Le Hong, deputy director general of the National Office of Intellectual Property of Vietnam. Photo: MST

Of the total cases, about 1,146 cases were handled administratively, and 28 cases were prosecuted criminally. Locak authorities also discovered nearly 30 cases of serious violations.

“Three weeks after the PM issued Directive 38 on focusing on decisively implementing solutions to combat, prevent, and handle intellectual property (IP) infringement, the number of administrative violations handled tripled the average monthly rate for 2025. The number of criminal cases initiated related to IP infringement was equivalent to approximately 60 per cent of the total number of cases initiated in 2025,” he shared.

According to the IP Office, many localities have established inter-agency task forces, strengthening coordination among the police, market management, customs, and other relevant agencies in inspecting, detecting, and handling violations.

The office also strengthens support for enforcement agencies, providing expert opinions to assist in handling cases of infringement of intellectual property rights (IPR) and industrial property rights, and publicly announces a contact point for assisting in searches and coordinating the provision of information to support the handling work of enforcement agencies nationwide.

He stated that the MST is coordinating with relevant ministries and agencies to build a national database on IPR enforcement by the end of 2026. Based on the compilation of daily reports, the ministry is gradually forming an initial data source on the detection and handling of IP infringements nationwide.

It is expected that this database will integrate information on administrative and criminal violations; typical, serious, or complex cases; and simultaneously update data on IPR, expert assessment results, and the process of handling infringements by enforcement agencies nationwide.

“Once built and operational, the database will support enforcement agencies in searching, sharing, and cross-referencing information more quickly, and coordinating the handling of cases more effectively. The database will be a powerful tool for statistical work and forecasting trends in IP infringement, serving as a basis for planning the activities of IP enforcement agencies nationwide,” he noted.

The effective tools to repress IP infringements The intellectual property of reputable and well-known businesses is perpetually the target of imitation. Nguyen Vu Quan, IP attorney at Kenfox IP and Law Office, explains the solutions in Vietnam for businesses in this area.

EuroCham proposes IP infringement prosecutions The European Chamber of Commerce in Vietnam (EuroCham) has proposed strong enforcement measures to fight against serious copyright infringement. The threat to Intellectual Property Rights (IPR) has caused significant damage to creators, as well as negatively impacted sales from legitimate consumers.