Vietnam Advances in Tax Reform to Leave the List of Non-Cooperative Jurisdictions

After being included by the European Union on the list of countries with tax transparency deficiencies, Vietnam has intensified its efforts to modernize its regulatory framework. The Vietnamese government recently announced its commitment to international recommendations, aiming to restore its position in the global tax community and strengthen its reputation as a reliable investment destination.

Addressing Tax Transparency Concerns

The EU listing highlights the shortcomings Vietnam needs to address regarding tax information exchange and regulatory compliance. The country recognizes that these deficiencies hinder its ability to cooperate with developed trading partners. To overcome this, Vietnam has implemented initiatives to modernize its tax compliance infrastructure and strengthen tax oversight mechanisms to meet current international standards.

Action Plan Aligned with International Standards

Vietnam has presented a comprehensive national plan that directly responds to recommendations from the Organisation for Economic Co-operation and Development (OECD). This program includes expanding bilateral and multilateral tax cooperation, especially with the European Union, to ensure the country’s tax practices align with international agreements. Implementing these measures demonstrates Vietnam’s determination to adhere to best practices in fiscal governance.

Strengthening International Tax Cooperation

Vietnam’s comprehensive effort goes beyond mere regulatory compliance; it represents a strategic move to build strong global tax relations. Enhanced cooperation with the European Union and other international actors will lay the foundation for Vietnam to remove its problematic jurisdiction status, reaffirm its position in the global tax system, and facilitate future trade partnerships based on mutual trust.