Accounting & Tax, Lasted News

Vietnam Work Permit & Tax Compliance for Foreign Experts

Posted on 05/12/202509/12/2025 by ASS

1. Key Compliance Requirements for Foreign Experts in Vietnam

When foreign experts work in Vietnam, they must fully meet three main groups of obligations: Vietnam Work permit legal documents, labor records, and tax and insurance obligations. Compliance is mandatory, and businesses are not allowed to let foreigners work without the appropriate license or visa.

1.1 Required legal documents

Work Permit or certificate of license exemption.
Vietnam work visa / TRC for the right purpose of work.
Labor contract signed after the work permit is approved.

1.2 Required labor records

Valid passport, degrees, professional certificates.
Confirmation of minimum experience according to job requirements.
Health certificate in the correct form.
Judicial record (if required by law).
All foreign documents must be consularized and notarized.

1.3 Tax and insurance obligations

Register for tax code and determine resident/non-resident status.
Deduct – declare – pay personal income tax according to Vietnam taxation regulations.
Participate in social insurance/health insurance if required.

1.4 Reporting and responsibilities of enterprises

Enterprises must explain the need to use foreign labor before applying for Work Permit.
Report foreign labor according to the deadline of the management agency.
Monitor visa, TRC, Work Permit expiration date to renew on time.

Failure to fully comply with regulations on work permits, work visas and Vietnam taxation can lead to serious consequences for both businesses and foreign experts. Businesses may be subject to high administrative fines, be suspended from employing foreign workers or be subject to increased inspections in subsequent periods.

Workers are at risk of being denied or having their Work Permit/visa extended, forced to leave the country or restricted from returning to work in Vietnam.

Therefore, full compliance and proactively updating regulations are of utmost importance for all businesses with foreign experts working in Vietnam.

2. Work Permit & Work Visa Requirements

2.1 Conditions for granting Work Permit

Enterprises must have written approval of the need to use foreign labor before submitting the application.
Workers must meet the professional standards:
- Qualifications relevant to the position
- Working experience according to the number of years specified for each position
Have a health certificate according to the form recognized in Vietnam (valid for 12 months).
Have a clean criminal record, no criminal record, valid and legalized according to regulations.
The labor contract or work agreement must be appropriate to the position applying for a Work Permit.

2.2 Classification of work visas and duration

DN Visa: for people who come to work with a business for a short time (not a replacement for a Work Permit).
LD Visa / Labor Visa: for people who work long-term and is the basis for applying for a temporary residence card.
Temporary Residence Card (TRC): is issued based on a Work Permit and has a corresponding term, up to 2 years.
The Work Permit term is according to the contract but not more than 2 years, and can be extended if conditions are met.

2.3 Work Permit Renewal Process

Submit your application when your Work Permit is still valid, 5-45 days before the expiry date.
The renewal application includes:
- Current Work Permit
- Confirmation of continued employment of foreign workers
- Renewed or renewed employment contract
- Health certificate, criminal record (if update required)
The labor agency reviews the new issuance according to the same procedure.

2.4 Work Permit Exemptions

Working in Vietnam for a short period of time according to the number of days allowed by law.
Members of diplomatic missions and their dependents who qualify.
Experts and lecturers invited or confirmed by state agencies.
Volunteers working for non-profit organizations or NGOs.
Some special cases according to the current decree, but still have to submit an exemption notification to the labor agency.

2.5 Common mistakes that cause applications to be rejected

Lack of notarized documents or using the wrong form according to regulations.
Degrees or experience do not demonstrate appropriate expertise.
Health certificate or criminal record expired / not legalized.
Inconsistent information between passport – contract – application.
The enterprise has not been approved to use foreign labor.
Using the wrong type of visa during the working period, leading to the application being evaluated as invalid.

REQUEST WORK PERMIT ASSISTANCE

3. Employment Contracts & Payroll Compliance

Foreign experts working in Vietnam must fully comply with tax obligations, focusing on personal income tax (PIT) and determining residency status. Enterprises are responsible for withholding, declaring and paying taxes according to regulations, and ensuring that the labor contract, working time and residency records of experts are properly managed. Determining whether an expert is a resident or non-resident directly affects the tax calculation, tax rate and income range that must be declared.

Important tax obligations to comply with:

Register for a personal tax code (MST) as soon as you start working.
Determine residency status based on the number of days present in Vietnam (≥183 days are considered residency).
Declare and pay PIT monthly or quarterly depending on the enterprise.
Annual tax finalization for resident individuals, or upon termination of the contract.
Declaring global income for individuals residing in Vietnam, if there is income generated abroad.
Store full tax documents for inspection purposes: labor contracts, payroll, deduction documents.

In addition, foreign experts need to ensure that their visas, Work Permits and labor contracts are consistent with the actual working time, to avoid being considered “illegible work”, leading to tax arrears or penalties. When there are changes such as position transfers, salary increases, changes in country of residence or contract termination, businesses must promptly update their tax records to avoid compliance risks and ensure transparency according to Vietnamese regulations.

4. Personal Income Tax for Foreign Employees

Foreign experts working in Vietnam must fully comply with personal income tax (PIT) obligations, including registering for a tax code, determining their residency status, and declaring and paying taxes on time. Residency status (resident or non-resident) directly affects the tax calculation, tax rate, and income range that must be declared. For resident individuals, global income arising from both Vietnam and abroad may be subject to declaration if it meets the prescribed conditions.

Main tax obligations to be performed

Register for a personal tax code as soon as you start working.
Determine residency status based on the number of days present in Vietnam (≥183 days/year).
Deduct, declare, and pay taxes monthly or quarterly through the enterprise.
Perform year-end tax settlement or upon termination of the labor contract.
Declare global income for resident individuals if they have income from abroad.
Keep complete documents to serve tax inspection when needed.

5. Annual Compliance Checklist for Foreign Experts Working in Vietnam

To avoid legal and tax risks, foreign experts and businesses need to comply with a set of annual inspection standards. This checklist helps ensure that Vietnam work Permits, visas, labor contracts, taxes and periodic reports are always updated on time, avoiding common errors such as incorrect visa types, expired documents, or inconsistent tax declarations. Annual Compliance Checklist including:

Check the Vietnam work Permit validity and renew it on time.
Review visas / temporary residence cards (TRC) to ensure compliance with the length of stay.
Update labor contracts, salaries, and allowances according to reality.
Compare residence records with the number of days present in Vietnam.
Make personal income tax settlements on time.
Confirm compulsory social insurance obligations (if applicable).
Submit all foreign worker reports as required by the Department of Labor.
Review all documents: contracts, payroll, taxes, visa/Work Permit documents.

6. Vina TPT’s End-to-End Compliance Support for Foreign Experts

Vina TPT provides a comprehensive compliance support solution for foreign experts in Vietnam, including Work Permit, visa, tax and labor records management. The service is optimally designed for FDI enterprises, multinational corporations and experts working under long-term contracts. Thanks to standardized processes and a team of experts, Vina TPT helps businesses reduce legal risks, save time and ensure transparency when using foreign workers. Comprehensive support services include:

Vietnam work Permit consultation and submission, WP extension, WP exemption confirmation.
Visa processing, temporary residence card (TRC) for experts and relatives.
Salary optimization – personal income tax, residence status determination and tax declaration.
Labor contract management, foreign worker reporting.
Annual compliance review.
Representing businesses in meetings with tax and labor authorities.

To ensure foreign experts work legally in Vietnam, contact Vina TPT for full support on Work Permit, visa and tax.

BOOK A FREE CONSULTATION

Accounting & Tax, Labor & Insurance Knowledge, Lasted News

[Newsletter] Vietnam Tax Policy Updates October 2025- CIT, VAT, PIT and Social Insurance

Posted on 02/12/202502/12/2025 by ASS

Vietnam is implementing a series of new tax, accounting, insurance, and labour regulations effective from October 2025. Notable updates include reduced export duty rates, clarified rules for input VAT deduction, higher PIT family circumstance deductions, a shift to non-resident taxation for certain foreign individuals, new CIT rates and deductible expense rules, and stricter sanctions on late or unpaid insurance contributions. These updates will reshape compliance requirements and influence core business operations, particularly in finance, payroll, and reporting functions.

This article outlines the essential policy changes businesses need to prepare for to ensure smooth compliance and operational continuity.

1. VAT & IMPORT/EXPORT DUTIES

1.a. Export duty on gold jewellery, fine art articles (from 8K) and other precious metal products reduced to 0%

Decree No. 260/2025/NĐ-CP dated 10/10/2025 of the Government amends the export duty rates for certain commodity lines under groups 71.13, 71.14 and 71.15 in the Export Tariff Schedule issued together with Decree No. 26/2023/NĐ-CP dated 31/05/2023.

The Decree reduces the export duty rate from 1% to 0% for the following items:

Jewellery and parts thereof, of other precious metal, whether or not plated or clad with precious metal (HS codes 7113.19.10 and 7113.19.90);

Articles of goldsmiths’ or silversmiths’ wares and parts thereof, of other precious metal, whether or not plated or clad with precious metal (HS code 7114.19.00);

Other articles of gold or silver (HS code 7115.90.10).

Products that are currently subject to the 0% export duty rate will continue to enjoy the existing 0% rate.

1.b. Input VAT deduction when payment is made via third-party authorisation

Official Letter No. 4850/DON-QLDN1 dated 15/10/2025 of Đồng Nai Provincial Tax Department provides guidance on the deduction of input VAT in cases where non-cash payment is made through authorisation to a third party.

According to the regulations, for the enterprise to be eligible for input VAT deduction, it must fully satisfy the general conditions prescribed in Clause 2, Article 14 of Law No. 48/2024/QH15:

Possession of a VAT invoice for the purchase of goods and services or VAT payment document.

Availability of non-cash payment evidence.

For exported goods and services, additional documents are required: contract, invoice, non-cash payment evidence, customs declaration, and other related documents.

In addition, when making payment through authorisation to a third party, the enterprise must comply with the further conditions stipulated in Decree No. 181/2025/NĐ-CP:

The authorisation for payment to the third party must be specifically stipulated in a written contract.

The third party must be an organisation or individual lawfully operating.

If the company fully satisfies all the above conditions and other relevant legal provisions, it will be entitled to deduct the input VAT.

2. PERSONAL INCOME TAX (PIT)

2.a. Increase in family circumstance deductions effective from 01/01/2026

On 17 October 2025, the Standing Committee of the National Assembly issued Resolution No. 110/2025/UBTVQH15 adjusting the family circumstance deductions for personal income tax. This Resolution takes effect from 01 January 2026 and applies to the 2026 tax period.

The deduction for the taxpayer himself/herself is increased from VND 11 million to VND 15.5 million per month (VND 186 million per year) (Article 1, point a). This means the taxpayer may deduct this amount when calculating taxable income, thereby reducing the tax payable.

The deduction for each dependant is increased from VND 4.4 million to VND 6.2 million per month (Article 1, point b). Accordingly, taxpayers with dependants will enjoy an additional deduction corresponding to the number of dependants, further easing the tax burden.

2.b. Foreign individuals – switch to non-resident PIT (20%) before departure

On 03 October 2025, the Tax Department issued Official Letter No. 4221/CT-CS providing guidance on PIT for foreign individuals working in Vietnam for less than 183 days and required to finalise their tax obligations before leaving the country. Specifically, where a foreign individual has previously been subject to resident PIT withholding and has self-declared PIT on overseas-paid income arising from work performed in Vietnam, but the actual number of days present in Vietnam is less than 183 days, such individual must re-determine their PIT obligations under the non-resident regime.

PIT is calculated at 20% on total Vietnam-sourced income, irrespective of where the income is paid or received.
Tax finalisation must be completed prior to departure from Vietnam.

3. CORPORATE INCOME TAX (CIT)

3.a. Key new points of Corporate Income Tax Law No. 67/2025/QH15 (effective 01/10/2025)

Official Letter No. 2244/QNG-NVDTPC dated 13 October 2025 of Quảng Ngãi Provincial Tax Department introduces the key new points of the Corporate Income Tax Law No. 67/2025/QH15 (effective from 01 October 2025). The main changes are as follows:

Expanded scope of taxpayers:

Addition of foreign enterprises that do not have a permanent establishment in Vietnam (including those engaged in e-commerce and digital platforms).

2. Taxable income:

Additional provision stipulating that taxable income arising in Vietnam for foreign enterprises is income derived from Vietnam, regardless of where the business activities are conducted.

3.New CIT rates based on revenue:

Standard rate: 20%

Enterprises with total annual revenue not exceeding VND 3 billion: 15%

Enterprises with total annual revenue exceeding VND 3 billion but not exceeding VND 50 billion: 17%

Oil and gas exploration and production activities: 25% – 50% depending on the project.

4.Determination of taxable income:

Taxable income from business activities is the total income from all business activities.

Loss carry-forward is allowed between activities, except for real estate transfer activities, investment projects, and participation rights in investment projects when the entity is enjoying tax incentives.

Income from the transfer of mineral exploration, extraction, and processing projects must be accounted for separately and may not be offset against other activities.

5.Tax exemption and reduction:

Public-service entities providing public services in socio-economically disadvantaged areas are entitled to a 50% reduction of CIT payable.

Enterprises converted from household businesses are exempt from CIT for two consecutive years from the year taxable income first arises.

6.Science and technology development fund:

Maximum contribution rate increased to 20%.

7.New tax calculation method:

Application of CIT as a percentage of revenue for enterprises with annual revenue ≤ VND 3 billion when revenue can be determined but costs and income cannot be determined.

8.Additional deductible expenses:

Expenses related to seconded personnel participating in management, administration, and control at credit institutions under special control or commercial banks subject to mandatory transfer.

Certain expenses incurred for business and production purposes but not yet generating corresponding revenue in the period, as stipulated by the Government.

Expenses for supporting the construction of public infrastructure that simultaneously serves business and production activities.

Expenses related to greenhouse gas emission reduction, carbon neutrality, net-zero initiatives, and environmental pollution reduction linked to business and production activities.

Certain contributions to funds established by decision of the Prime Minister or the Government.

3.b. Temporary CIT payment of 1% on progress payments received for housing projects

Official Letter No. 5129/CT-CS dated 12 November 2025 of the Tax Department on tax policies:

For housing investment projects intended for transfer/sale: If the investor collects advance payments according to progress, it must make provisional quarterly Corporate Income Tax (CIT) payments equal to 1% of the amounts collected, pursuant to Point b, Clause 6, Article 8 of Decree No. 126/2020/NĐ-CP.

Regarding interest expense for enterprises with related-party transactions: Deductible interest expense is subject to the cap under Clause 3, Article 16 of Decree No. 132/2020/NĐ-CP and applies to all enterprises with related-party transactions, irrespective of whether they are domestic or foreign-invested enterprises.

4. SOCIAL, HEALTH & UNEMPLOYMENT INSURANCE – TRADE UNION

4.a. Three major changes to unemployment insurance effective from 01/01/2026 (Law on Employment 2025)

On 16 June 2025, the National Assembly passed the Law on Employment 2025, which officially takes effect from 01 January 2026. Accordingly, unemployment insurance policies will undergo significant changes, with the following three key updates to unemployment insurance effective from 01/01/2026:

(1) No entitlement to unemployment benefits upon eligibility for pension

From 01/01/2026, under point a, clause 1, Article 39 of the Law on Employment 2025, employees who terminate employment or end their labour contract upon reaching eligibility for pension benefits will not be entitled to unemployment benefits. Thus, effective from 01/01/2026, unemployment benefits will not be payable to individuals who meet pension eligibility criteria, regardless of whether pension procedures have been initiated.

(2) Faster receipt of unemployment benefits with reduced waiting period to 10 days

From 2025, pursuant to clause 3, Article 39 of the Law on Employment 2025, the commencement date for unemployment benefits effective from 01/01/2026 will be the 11th working day following the submission of a complete application dossier for unemployment benefits. This represents a reduction of 5 days from the current regulation, under which benefits commence from the 16th day after dossier submission.

(3) Maximum level of unemployment benefits

Pursuant to clause 1, Article 39 of the Law on Employment 2025, the maximum monthly unemployment benefit for all employees shall not exceed 5 times the regional minimum wage at the time of contract termination.

4.b. Penalties for late or evaded compulsory social/health/unemployment insurance contributions – effective 30/11/2025

On 16 October 2025, the Government issued Decree No. 274/2025/NĐ-CP detailing certain provisions of the Social Insurance Law regarding late payment, evasion of compulsory social insurance and unemployment insurance contributions; complaints and denunciations related to social insurance. This Decree takes effect from 30 November 2025.

Late payment interest rate: 0.03% per day calculated on the amount and number of days of late or evaded payment (Article 3, Clause 1, Point d; Article 7, Clause 2).

Conversion period to evasion: An act of late payment shall be converted to an act of evasion after 60 days from the expiry of the latest payment deadline, provided that the Social Insurance Agency has issued a written reminder (Article 6, Clause 1, Point c).

Evasion by understating salary: The act of registering a salary base for social insurance contributions lower than prescribed under the Social Insurance Law shall be deemed evasion (Article 6, Clause 1, Point b).

Exemption from evasion classification (force majeure): Specific enumeration of 4 force majeure cases not to be considered as evasion (such as storms, floods, dangerous epidemics, emergency situations) as announced by competent authorities (Article 4).

5. ACCOUNTING REGIME

5.a. Circular 99/2025/TT-BTC guiding the accounting regime for enterprises

On 27 October 2025, the Ministry of Finance issued Circular No. 99/2025/TT-BTC regulating the accounting regime for enterprises, replacing Circular No. 200/2014/TT-BTC dated 22 December 2014. Circular No. 99/2025/TT-BTC takes effect from 01 January 2026 and applies to financial years beginning on or after 01 January 2026. Pursuant to the regulations, Circular No. 99/2025/TT-BTC simultaneously repeals and replaces the following documents:

Circular No. 200/2014/TT-BTC guiding the accounting regime for enterprises;

Circular No. 75/2015/TT-BTC (amending Article 128 of Circular 200);

Circular No. 53/2016/TT-BTC (amending and supplementing certain provisions of Circular 200);

Circular No. 195/2012/TT-BTC dated 15 November 2012 guiding accounting for main investors.

However, certain provisions related to the accounting for the equitisation of State-owned enterprises under Circular 200 shall continue to apply until the Ministry of Finance issues a new replacement document.

Below are some key differences between Circular No. 99/2025/TT-BTC and Circular No. 200/2014/TT-BTC regarding the accounting regime for enterprises:

Method of converting financial statements prepared in foreign currency to Vietnamese Dong:

Assets and liabilities shall be converted to Vietnamese Dong at the average transfer buying/selling exchange rate of the commercial bank where the enterprise regularly conducts transactions as at the end of the accounting period;

Owner’s equity (owner’s contributed capital, capital surplus, other capital, convertible bond options) shall be converted to Vietnamese Dong at the actual transaction exchange rate on the date of capital contribution;

Revaluation differences of assets shall be converted to Vietnamese Dong at the actual transaction exchange rate on the revaluation date; …..

Chart of accounts: Reduced to 71 level-1 accounts, abolishing 6 accounts, including 4 accounts related to non-business funding sources, capital construction investments, and 2 accounts (611 and 631).

Addition of accounts: Renaming of accounts and addition of new accounts (e.g., Account 215 – Biological assets, etc.). Abolition of certain accounts: 621 – Purchase costs, 631 – Production costs, etc.

Accounting forms and financial statement templates: Enterprises may also design additional or amend and supplement accounting forms and financial statement templates compared to those guided under this Circular to suit the characteristics of production and business activities and management requirements. Renaming of the “Balance Sheet” template to “Statement of Financial Position”.

6. OTHER

6.a. 2025 Labour Utilisation Report for Ho Chi Minh City – Must be submitted before 05 December 2025

Official Letter No. 9002/SNV-VLATLĐ dated 13 November 2025 of the Ho Chi Minh City Department of Home Affairs on the implementation of Article 4 of Decree No. 145/2020/NĐ-CP regarding labour utilisation reporting.

The Ho Chi Minh City Department of Home Affairs provides the following guidance on the submission of the 2025 labour utilisation report by establishments within the territory of Ho Chi Minh City:

Entities required to submit the report:

Agencies, organisations, enterprises, cooperatives, households, and individuals that hire, employ, or utilise labour.

Those with headquarters or places of operation within the territory of Ho Chi Minh City.

2. Content of the report:

To be completed in accordance with Form No. 01/PLI in Appendix I issued together with Decree No. 145/2020/NĐ-CP.

3. Method of submission (select one of the two options):

Submission via the National Public Service Portal: Perform the “Integrated procedure for registering adjustments to compulsory social insurance, health insurance, unemployment insurance contributions and labour utilisation reporting”: https://dichvucong.gov.vn/.

Submission to the Department of Home Affairs: Send the report online via Google Form: https://forms.gle/CiLKksGKq5McCyDP7.

4. Submission deadline: To be completed before 05 December 2025.

5. Important notes:

After the prescribed deadline, the Department of Home Affairs will not accept any reports.

The Department of Home Affairs will compile the implementation status as a basis for confirming compliance with legal regulations upon request from relevant agencies.

Failure to submit the report on time may result in administrative violations under Clause 2, Article 8 of Decree No. 12/2022/NĐ-CP.

Lasted News, Company Formation

Good Business Ideas to Start in Vietnam: Company Setup & Profitable Opportunities

Posted on 02/12/202509/12/2025 by ASS

1. Current Market Trends Shaping Business Opportunities

Vietnam is becoming an attractive destination for setting up a company in vietnam thanks to its stable economic growth, young population and dynamic workforce. Consumer demand is growing, especially in the technology, services and retail sectors. The booming online market also opens up opportunities for e-commerce and logistics models, while the F&B and tourism industries continue to recover strongly after the pandemic.

In addition, the interest in health, education and high technology also creates many new opportunities. Businesses that exploit this trend can take advantage of rapid growth and sustainable profits in the long term.

2. Emerging Business Models for New Entrepreneurs

The emerging business models in Vietnam today are diverse, suitable for many types of entrepreneurs:

Retail & E-commerce: online sales, e-commerce platforms, dropshipping models.
Logistics services: transportation, warehousing, fulfillment for e-commerce.
Edu-tech: online learning platforms, skills training, specialized education.
High-tech & Startups: AI, IoT, blockchain, enterprise software applications.
Creative F&B: cafes, concept restaurants, organic food.
Production: agricultural processing, processing, industrial equipment manufacturing.
Tourism & Hospitality: experiential tourism, homestay, travel services.
Healthcare & Wellness: clinics, health care, fitness, spa.

These models are growing rapidly thanks to changing consumer needs and the acceptance of new technology in life.

START YOUR BUSINESS JOURNEY

3. Essential Steps to Legally Start a Company

To start a business in Vietnam legally, entrepreneurs need to fully comply with basic legal procedures. Doing it right from the beginning helps avoid legal risks, ensures smooth business operations and easy expansion later.

3.1 Choose a business type and register a business

The first step is to determine the type of business that is suitable for the business goals:

Single-member LLC: suitable for individual business owners or sole investors; limited liability, simple management.
Two-member LLC or more: from 2-50 members, limited liability, suitable for small investor groups.
Joint Stock Company (JSC): suitable for businesses that want to raise capital from many shareholders; suitable for startups or large projects.
Private enterprise: easy to establish, but the business owner has unlimited liability.

After choosing the type, the business needs to name the company uniquely and submit the business registration application to the Department of Planning & Investment. The company name must not be the same as that of registered businesses and must accurately reflect the field of operation.

3.2 Completing additional legal procedures

After registering a business, the enterprise needs to perform the following steps:

Registering a tax code (MST):
- Required for declaring VAT, CIT and PIT if there are employees.
- MST is the legal basis for conducting all tax transactions with the management agency.
Applying for necessary business licenses:
- Depending on the industry, some fields require sub-licenses such as F&B, logistics, education, and healthcare.
- The license dossier includes conditions on facilities, expertise, and related documents.
Opening a corporate bank account:
- Needed for financial transactions, obtaining charter capital and managing cash flow.
Complete other procedures:
- Hanging company signs, registering digital signatures, submitting initial tax reports.
- Ensuring that businesses fully comply with legal regulations from the beginning.

Fully implementing 3.1 and 3.2 helps businesses operate legally, reduce risks and easily develop long-term in the Vietnamese market.

4. Vina TPT as a Strategic Partner for New Businesses

Starting a business in Vietnam can be complicated, so working with a strategic partner like Vina TPT gives entrepreneurs peace of mind. Vina TPT provides a comprehensive solution from strategic consulting to company registration, including:

Choosing the right type of business.
Submitting business registration documents to the Department of Planning & Investment.
Applying for necessary sub-licenses according to the industry.
Instructions on tax management and proper declaration.

Starting a business in Vietnam becomes easier and safer with Vina TPT, a strategic partner providing comprehensive solutions.

BOOK A FREE CONSULTATION

Accounting & Tax, Lasted News

How to Handle Personal Income Tax Finalization 2025 for Foreign Employees in Vietnam

Posted on 02/12/202510/02/2026 by ASS

1. 2025 Updates: What’s New in Vietnam’s Personal Income Tax for Foreigners

Tax finalization in 2025 will be affected by several important changes in personal income tax (PIT) regulations in Vietnam that foreigners and businesses need to pay attention to. Key updates include:

Increased Family and Dependent Deductions: The personal relief will rise from 11 million VND/month to 15.5 million VND/month, and the dependent relief from 4.4 million VND/month to 6.2 million VND/month. This change, effective for the 2026 tax period, helps reduce the PIT burden for many taxpayers.
Broader Deductible Expenses: The draft PIT law proposes new deductible expenses for healthcare, education, and training costs for taxpayers and their dependents, allowing further optimization of taxable income if supported by valid invoices.
Tax Withholding for E-commerce Income: Starting from April 1, 2025, e-commerce and digital platforms (including international platforms) are required to withhold and pay PIT on behalf of individual sellers. Non-resident individuals providing services via these platforms must register and comply with PIT obligations in Vietnam.

These changes directly affect tax filing deadlines, tax calculation, and the final tax amount to be paid. Foreign investors and expatriates should prepare accordingly to ensure compliance and optimize their tax liabilities.

Foreign personnel such as experts, managers or expats working in Vietnamese companies need to clearly understand the new regulations to ensure full and timely declaration. Timely understanding of policies helps reduce the risk of administrative fines and facilitates tax refund requests or tax processing for foreign income.

2. Who Needs to File Personal Income Tax Finalization in Vietnam

Subjects required to make PIT settlement include residents and non-residents in Vietnam.

Residents are those who have a residence period of 183 days or more in a year, or have a permanent residence in Vietnam. These individuals must declare all income in and outside Vietnam.

For non-residents, the obligation to make PIT settlement only applies to income generated in Vietnam, including salaries, bonuses, and income from service contracts.

Read more about Vietnam’s personal income tax changes: https://vinatpt.com/https-vinatpt-com-personal-income-tax-in-vietnam/

In addition, foreign employees working for Vietnamese companies but also having income from abroad need to correctly identify the type of income subject to tax in Vietnam and prepare documents proving the source of income to avoid double taxation.

3. Step-by-Step: How to Handle Tax Finalization for Foreign Employees

The PIT settlement process should start with collecting all relevant documents, including:

Employment contracts
Payroll records
Invoices proving deductible expenses
Foreign income documents (if any)

To calculate Personal Income Tax (PIT) in Vietnam for 2025, it is essential to distinguish between resident and non-resident individuals, as the methods and applicable deductions differ significantly:

Resident Individuals: An individual is considered a resident of Vietnam if he/she stays in Vietnam for 183 days or more in either the calendar year or the period of 12 consecutive months from the date of arrival or has a permanent residence as prescribed.
- Taxed on global income, including both Vietnam-sourced and foreign-sourced income.
- Eligible for personal deduction: 11 million VND/month (≈132 million VND/year in 2025; will increase to 15.5 million VND/month from 2026).
- Eligible for dependent deduction: 4.4 million VND/month per dependent (≈52.8 million VND/year in 2025; will increase to 6.2 million VND/month from 2026).
- Other deductible items include mandatory insurance contributions, voluntary pension schemes, and certain charitable donations.
- Taxable income is calculated by subtracting all eligible deductions from total income.
- Progressive tax rates apply, ranging from 5% to 35%, depending on monthly taxable income.
Non-Resident Individuals: An individual is considered non-resident in Vietnam if he/she stays in Vietnam for less than 183 days in a year or does not have a permanent residence in Vietnam.
- Taxed only on Vietnam-sourced income.
- No personal or dependent deductions are allowed.
- Taxable income is directly subject to flat tax rates, usually 20% on employment income; other Vietnam-sourced income may be taxed from 0.1% to 20% depending on the type.

Understanding this distinction ensures correct calculation of PIT, prevents overpayment or underpayment, and keeps taxpayers fully compliant with the 2025 regulations.

Finally, declaring and submitting PIT settlement documents can be done online via the e-tax system or through the enterprise. After submitting, it is necessary to check confirmation from the tax authority and store the documents for comparison or future audit purposes.

AVOID PIT MISTAKES NOW

4. Common Mistakes in Expat PIT Finalization and How to Avoid Them

4.1 Under-declaring the Number of Days of Residence

Many foreign employees’ residence days in Vietnam are miscalculated.
Incorrect calculation affects resident status and tax payable.
Solution: Keep detailed records of arrival and departure dates for each employee.

4.2 Omitting Foreign Income

Some expatriates earn income from parent companies or projects abroad.
Failing to declare foreign income can result in additional tax collection during audits.
Solution: Confirm all income earned during the year and provide legal proof for each source.

4.3 Incorrect Application of Family or Legal Deductions

Family deductions and other legal deductions may be applied incorrectly if not updated.
Using outdated deduction limits can cause overpayment or non-compliance.
Solution: Update deductions according to the latest regulations of the General Department of Taxation and verify calculations before submission.

5. Tax Refunds and Double Taxation Agreements (DTA) in Vietnam

Foreign investors and employees can claim tax refunds if they have overpaid or been taxed twice on the same income. Vietnam has signed many double taxation agreements with countries such as Japan, Korea, Singapore, the US and Australia.

Applying for a DTA requires businesses and individuals to accurately determine their source of income, length of stay and the amount of tax paid abroad. This process includes preparing documents, submitting tax applications and contacting the tax authorities directly to confirm their rights.

6. How Vina TPT Tax Services Simplify PIT Finalization for Foreign Professionals

Vina TPT offers comprehensive Personal Income Tax (PIT) support for foreign employees in Vietnam, ensuring full compliance with local regulations while simplifying the process for businesses:

Record Review: Carefully examine labor contracts, payrolls, tax deduction documents, foreign income records, and related invoices to ensure all data is accurate and complete.
Tax Calculation: Compute taxable income, apply family and dependent deductions, and ensure proper application of Double Taxation Agreements (DTA) to avoid double taxation.
Declaration Preparation & Submission: Prepare PIT finalization dossiers and submit through the e-tax system or on behalf of the business, providing bilingual Vietnamese-English reports for easy monitoring.
Tax Refund Support: Assist with preparing and monitoring tax refund dossiers, liaising with tax authorities to secure timely and transparent refunds.
Ongoing Consultation: Represent the business in case of audits, additional document requests, or inquiries, helping to manage administrative requirements efficiently.

Ensure full compliance and maximize tax efficiency for your foreign employees – contact Vina TPT Tax Services today!

BOOK A FREE CONSULTATION

Accounting & Tax, Lasted News

Tax Consultant’s Guide: Month/Quarter – End Filings for Vietnam

Posted on 01/12/202504/12/2025 by ASS

1. Mandatory Month/Quarter-End Tax Obligations in Vietnam

Tax consultant services are essential in Vietnam, where businesses must fulfill their tax obligations monthly or quarterly depending on their revenue and current regulations. Some mandatory obligations include:

Declaring VAT monthly or quarterly based on a revenue
Reporting on invoice usage (if still using paper invoices or in some special cases).
Temporarily paying corporate income tax (CIT) quarterly, based on actual business results.
Declaring PIT (Personal Income Tax) based on monthly or quarterly payroll.
Submit the FCT (Foreign Contractor Tax) declaration within 10 days from the date the tax obligation arises (i.e., the payment date to the foreign contractor).

The introduction helps businesses grasp the mandatory “to-do list” and avoid under-declaration, incorrect declaration or late declaration.

2. Month-End Filing Process Managed by Tax Consultants

Even though businesses have an in-house accounting team, many monthly tax filing errors still occur due to a lack of a standard process. To avoid errors and ensure compliance, tax consultants often guide businesses through each step systematically: from checking invoices, comparing data to preparing and submitting declarations on time. Below is the standard process that tax experts recommend businesses apply every month.

2.1 Collecting & Verifying Monthly Documents

Tax consultants will guide businesses to collect and check all important documents:

Input and output invoices of the month.
Contracts, receipts and payment vouchers, bank statements.
Timesheets, payroll, allowances for calculating personal income tax.
Non-cash payment records (conditions for VAT deduction).
Check the validity of invoices: tax code information, product description, tax rate, signing date.

2.2 Reconciliation of Accounting & Tax Data

Based on the guidance of tax experts, businesses conduct reconciliation:

Output VAT – input VAT to calculate the amount of tax payable or deductible.
Payroll and PIT to be deducted in the month.
Accounts receivable – payable.
Differences between actual documents and bookkeeping records.

2.3 Preparing Monthly Tax Returns

After the data has been reviewed, the tax consultant will guide the business to:

Prepare a monthly or quarterly VAT declaration (depending on the reporting period).
Prepare a PIT declaration deducted from monthly salary.
Check and match the data on the declaration with the accounting books.
Prepare an invoice report (if the business is subject to payment).

2.4 Internal Approval & Electronic Submission

Before submitting to the tax authority, the enterprise needs to:

The Director or finance department reviews and approves the declaration according to the tax consultant’s instructions.
Submit the electronic declaration on time.
Pay VAT/PIT incurred during the period.

2.5 Post-Filing Compliance Follow-up

After submitting the declaration, the tax consultant recommends that the business continue to:

Check the tax payment receipt to ensure the system accepts the declaration.
Archive the records for tax audits/audits.
Review errors from the previous period to adjust the declaration process for the next period.

3. Key Requirements for Quarter-End Fillings

Quarter-end filings in Vietnam involve more than just summing up numbers—they require careful planning, compliance with Vietnam income tax regulations, and meticulous verification. Engaging a tax consultant in Vietnam ensures your business meets all obligations accurately and avoids penalties from the tax department.

3.1 Gather Complete Documentation

Before submitting quarterly tax filings, businesses must prepare all source documents for review:

Sales invoices and delivery notes
Purchase invoices and payment receipts
Bank statements and financial agreements
Payroll records, labor contracts, and insurance contributions
Inventory counts and fixed asset schedules

3.2. Accurate Revenue and Expense Reporting

Recognize revenue according to Vietnam income tax rules and accrual accounting.
Match expenses to the correct revenue period.
Exclude non-deductible expenses as per Vietnam tax regulations.
Ensure all accruals, prepayments, and adjustments are correctly recorded.

3.3 VAT, CIT, and PIT Compliance

Reconcile VAT collected and VAT input credits.
Calculate PIT for employees, including part-time or foreign staff.
Determine corporate income tax (CIT) provisional payments for the quarter.
Check alignment between accounting records and tax reports to prevent discrepancies.

3.4 Reconciliation of Key Accounts

Bank account balances vs. bank statements
Accounts receivable and payable vs. confirmations from partners
Inventory records vs. physical stock counts
Fixed assets and depreciation schedules
Loans, interest expenses, and other financial obligations

3.5. Internal Controls and Review

Approval of all journal entries, adjustments, and corrections
Double-check by accounting manager or controller to ensure accuracy
Maintain segregation of duties to reduce errors
Keep a full audit trail for submission and future inspection

Following these steps under guidance from a professional tax consultant in Vietnam helps businesses stay compliant with Vietnam income tax, reduces risk of penalties, and ensures all filings to the tax department are accurate and timely.

SCHEDULE A COMPLIANCE CHECK

4. Role of Tax Consultants in Ensuring Accurate and Compliant Filings

Tax consultants in Vietnam play a key role in helping businesses maintain accurate and compliant tax records during month-end and quarter-end filings. Their work goes beyond simply preparing documents; they guide companies step by step to ensure that all financial data is properly reconciled and verified.

During this process, tax consultants focus on:

Reviewing input and output VAT to ensure proper deduction and reporting.
Checking personal income tax (PIT) calculations and payroll deductions.
Reconciling corporate income tax (CIT), Foreign Contractor Tax (FCT) prepayments with actual revenue.
Examining supporting documents to prevent missing invoices or non-deductible expenses.

In addition, tax consultants provide strategic advice on implementing internal procedures, keeping the company updated with the latest Vietnam income tax regulations, and standardizing accounting and tax processes. This proactive guidance reduces the risk of errors, fines, and audits, while building a reliable system that ensures transparency and smooth month-end and quarter-end tax compliance.

5. Vina TPT’s Professional Tax Filing and Compliance Support

Vina TPT supports businesses to fully perform their monthly/quarterly tax obligations with standardized procedures:

Check and evaluate the validity of documents.
Compare accounting and tax data to ensure no discrepancies.
Support VAT, PIT declaration, invoice and CIT, FCT reporting according to regulations.
Monitor deadlines and make electronic declarations on time.
Representatives work with the tax department when explanations are needed.
Accompanying long-term tax compliance consulting for FDI & SME enterprises.

Contact Vina TPT today for detailed guidance and to ensure full compliance with tax obligations in Vietnam.

BOOK A FREE CONSULTATION

Accounting & Tax, Lasted News

Best Accounting Firm in Da Nang: Outsourced Bookkeeping & Full-Service Accounting for SMEs

Posted on 01/12/202510/12/2025 by ASS

1. Why Da Nang Businesses Are Increasingly Outsourcing Accounting

Best outsourced accounting services are increasingly chosen by small and medium-sized enterprises (SMEs) in Da Nang, especially in the logistics, trade, and hospitality sectors, as a way to optimize human resources and internal management costs. Small and medium-sized enterprises (SMEs) in Da Nang, especially in the logistics, trade and hospitality sectors, increasingly choose to outsource accounting to optimize human resources and internal management costs. Hiring internal accountants is often costly due to the need to pay salaries, benefits, training and human resources management costs. Instead, outsourcing helps businesses transfer all accounting tasks to specialized units, saving costs and reducing the management burden.

Besides costs, the second reason is to increase efficiency and reduce legal compliance risks. Outsourcing businesses are supported by experts who understand tax laws, local regulations and Vietnamese accounting standards. This ensures that tax reports, financial reports and social insurance obligations are performed accurately and on time, while helping SMEs avoid errors that can lead to administrative fines or tax arrears. In addition, outsourcing also helps businesses focus on core business activities instead of wasting time on complex accounting operations.

2. Key Criteria to Identify the Best Accounting Firm in Da Nang

When choosing the best outsourced accounting services provider, businesses need to consider the following criteria:

Accuracy and information security: accounting records must be securely managed to avoid errors.
Tax expertise: in-depth knowledge of VAT, CIT, PIT, FCT, import taxes, and staying updated with the latest tax regulations.
Ability to handle periodic reports: monthly/quarterly and annual reports must be accurate and on time.
Understanding local regulations: especially important for SMEs in Da Nang to avoid legal risks.
Experience with diverse business models: from SMEs, FDI to logistics, trade and hospitality enterprises.

3. Monthly & Year-End Reporting Requirements in Da Nang

SMEs in Da Nang must comply with many monthly/quarterly and year-end accounting and tax requirements to ensure legal operations and avoid the risk of being fined. Hiring a local professional accounting firm helps businesses fulfill these obligations accurately and efficiently.

3.1 Monthly & Quarterly Reporting

Monthly bookkeeping: record all revenues and expenditures, invoices, and documents according to Vietnamese accounting standards (VAS).
VAT (Value Added Tax): declare and pay monthly or quarterly depending on revenue.
PIT (Personal Income Tax): deduct and pay taxes for employees, including foreign experts if any.
CIT (Provisional Corporate Income Tax): if the business is subject to provisional declaration and payment, it must be done quarterly.
Labor and Social Insurance Report: declare the number of employees, pay social insurance, health insurance, and unemployment insurance in full.

3.2 Year-End Reporting

Year-end financial report: prepare business results report, balance sheet, note to comply with Vietnamese accounting standards.
Personal Income Tax & CIT settlement: summarize all income, deduct tax paid and prepare settlement declaration.
Check and store documents: invoices, payroll, labor contracts, expense documents must be complete to serve audit or inspection.

4. Top Accounting Firms in Da Nang

Below are 6 reputable accounting companies in Da Nang that SMEs can refer to, in which Vina TPT stands out thanks to its full-package services and many years of experience:

Vina TPT Accounting Service: full-package services from bookkeeping, tax declaration, financial reporting to tax consulting; specializing in serving SMEs and FDI enterprises; more than 10 years of experience, transparent costs, standard procedures and understanding of local regulations.
Anpha Accounting Company: providing full-package accounting services, many years of experience, flexible fees.
Quoc Viet Accounting Company: specializing in tax & accounting services for small and medium enterprises, clearly committed to costs.
An Tin Law Company: combining accounting and legal services, supporting tax reporting and legal procedures.
MAN Tax Consulting Management Company: accounting, auditing and tax consulting services, ensuring “doing it right the first time”.
TAF Auditing Consulting Company: provides accounting, auditing and financial reporting services, suitable for SMEs.

CONTACT FOR PROFESSIONAL ACCOUNTING SERVICES

5. Why Vina TPT is One of the Best Outsourced Accounting Services in Da Nang

Vina TPT is trusted by many FDI enterprises in Da Nang thanks to more than 120 years of experience and full accounting services, from bookkeeping, tax declaration, financial reporting to strategic consulting. With the motto “accurate – transparent – effective”, Vina TPT helps businesses optimize operating costs, reduce legal risks and focus on business development.

Strengths that make Vina TPT stand out

Full-package service:
- Manage all monthly accounting operations and annual reports.
- Declaration of VAT, CIT, PIT, FCT, payment of social insurance for employees.
- Consulting on tax strategies and optimizing legal costs.
Over 20 years of experience:
- Serving a wide range of industries: logistics, trade, hospitality, SMEs and FDI. Solving complex tax and accounting issues, ensuring compliance with Vietnamese law.
Standardize processes & make costs transparent:
- Transparent reporting and costs, avoiding unexpected costs.
- Support businesses in building professional internal accounting processes.
Understand local laws and stay updated:
- Mastering tax, social insurance and accounting regulations in Vietnam.
- Timely updating of legal changes so that businesses always comply with regulations.
Comprehensive support for businesses:
- Reduces the workload of internal accounting operations, allowing businesses to focus on business development.
- Represents businesses in dealing with tax and labor authorities when necessary.

Thanks to the above advantages, Vina TPT is not only a reputable accounting company but also a strategic partner, helping businesses in Da Nang effectively manage finances, optimize taxes, and maintain full legal compliance.

Contact Vina TPT now for full support in accounting, tax and financial reporting, helping operate effectively and comply with the law.

BOOK A FREE CONSULTATION

Lasted News, Accounting & Tax

How the Best Accounting Firms Handle Monthly and Year-End Closing

Posted on 28/11/202515/04/2026 by ASS

1. The Real Reason Businesses Struggle With Monthly & Year-End Closing

Best outsourced accounting services help businesses manage complex financial processes efficiently. Many businesses are often under great pressure at the end of the month and year due to non-standardized accounting processes or heavy reliance on manual work. When having to reconcile hundreds or thousands of documents, summarize revenue and expenses, check customer and supplier debts, and prepare periodic tax reports, accounting staff are prone to errors or delays. These errors can lead to inaccurate financial information, affect management decisions and make it difficult to evaluate business performance.

In addition, failure to comply with tax obligations on time also creates legal risks, from administrative fines to surprise inspections by tax authorities. Especially for small and medium-sized enterprises, the lack of an experienced accounting team can multiply these risks. Therefore, many businesses choose outsourced accounting services, which help standardize processes, ensure accurate, transparent and timely data, and free up resources to focus on business development.

2. What a Strong Monthly Accounting Process Looks Like

A professional monthly accounting process is divided into clear steps:

2.1 Prepare documents and data

Collect and check all invoices, payment vouchers, receipts and related documents.
Check data with ERP system or internal books.

2.2 Record and check revenue – expenses

Record full revenue by month, valid expenses.
Check the accuracy of tax deductions.

2.3. Check debt and account balance

Reconcile customer and supplier debt.
Compare bank balance and accounting books to ensure there are no discrepancies.

2.4. Review and approve

Triple check: accounting staff → general accountant → chief accountant.
Ensure month-end data is accurate, transparent, reducing risks when tax authorities inspect.

Small businesses with few employees often skip many of the above steps, leading to data errors. Using outsourced accounting services helps ensure this process is standardized, cost-effective, and still meets professional accounting standards.

3. Year-End Closing: Why It’s a Completely Different Level of Complexity

While monthly closing helps businesses maintain stability, year-end closing is a “big test” summarizing all financial activities of the whole year. This is not just a step to accumulate data but also a process of confirming compliance with accounting standards, preparing for audits and reconciling tax obligations.

The workload has increased dramatically: data needs to be reviewed more deeply, documents are required more strictly and the risk level is also higher – especially for businesses that do not have standard accounting processes or are lacking in human resources. This is the reason why many businesses choose outsourced accounting services to ensure accuracy, transparency and limit errors in reporting.

During the year-end closing process, businesses are forced to review and reconcile all data of the whole year, including:

Checking and confirming revenue in the correct period and with the correct documents.
Reconciling expenses, ensuring completeness and correct accounting groups.
Reviewing receivables and payables and reconciling with partners.
Inventory and confirmation of inventory, handling of discrepancies if any.
Check fixed assets and compare original price – remaining value.
Calculate and review depreciation of fixed assets according to regulations.
Evaluate and update provisions (bad receivables, inventory discounts, warranties, etc.).

Year-end closing requires high accuracy, large workload and strict compliance. Even though standard accounting procedures are implemented every month, businesses cannot ignore this stage because any errors directly affect financial reports, taxes and the audit process.

GET PROFESSIONAL YEAR-END ACCOUNTING SUPPORT

4. How Vina TPT Ensures Smooth Monthly & Year-End Closing for Clients

Vina TPT implements a professional process to help customers close smoothly, including:

Direct consultation from the beginning: Understand the business model, assess tax risks, and develop a compliance plan.
Detailed document instructions: List of documents to be prepared, support for collection through a secure system.
Automatic error checking process: Multi-layer data checking, reducing manual errors.
Specialized closing team: Accountants, general accountants, chief accountants coordinate to triple check.
Support year-end settlement: Prepare financial statements, reconcile taxes, prepare audit documents, and report on time.

Therefore, businesses not only reduce the risk of errors but can also focus on product development and market expansion without having to worry about accounting or taxes.

If you want a smooth closing process and accurate financial reports from the first month, let Vina TPT accompany your business.

BOOK A FREE CONSULTATION

Accounting & Tax, Lasted News

Why Startups Need the Best Accounting Firms in Vietnam?

Posted on 28/11/202515/04/2026 by ASS

1. The Early Challenge: Why Accounting Is a Common Pain Point for Startups

Full-service accounting plays a crucial role in supporting the growth of foreign-invested enterprises. In recent years, Vietnam has not only attracted large corporations but also increasingly attracted startups from Japan, Korea, India, Singapore, the US, Taiwan and Australia. With the level of FDI capital continuously increasing, according to the report of the Foreign Investment Agency, in the first six months of 2025 alone, Vietnam attracted more than 21.5 billion USD of FDI capital, reaching a record in the past 15 years, it is clear that the FDI startup environment in Vietnam is more vibrant than ever.

However, foreign-invested startups face more challenges than domestic startups, especially in setting up accounting processes and tax compliance. FDI enterprises are subject to higher supervision in preparing financial reports according to Vietnamese standards, while still having to summarize data for their headquarters abroad.

Therefore, choosing a reputable comprehensive accounting firm is an important strategy for FDI startups. A quality accounting unit not only keeps books but also supports tax compliance, prepares financial statements, manages cash flow and prepares for audits, helping founders focus on product development, market expansion and capital mobilization.

2. Full-Service Accounting: What It Really Means for Startups

Full-service accounting offers a complete suite of financial services, including:

Bookkeeping: Record and organize all financial transactions accurately, ensuring the company’s accounting data is up-to-date and reliable.
Financial Reporting: Prepare regular financial statements, enabling startups to track performance, assess cash flow, and support investor or management decisions.
Tax Filing: Handle all tax declarations (VAT, PIT, CIT, FCT) and submissions on time, ensuring compliance with local regulations and minimizing risk of penalties.
Payroll Management: Calculate and process employee salaries, social insurance, and personal income tax accurately, for both full-time and part-time staff.
Legal Compliance Consulting: Advise on accounting and financial regulations, helping startups follow laws, avoid errors, and standardize processes from the start.

Full-services also support startups to standardize internal processes, from invoice reconciliation, cost management, revenue tracking to management reporting. This helps businesses be ready to present accurate data to investors, prepare for audits, and build future expansion plans. Startups do not have to worry about reporting errors or violating the law while still controlling cash flow effectively.

3. Streamlining Accounting Procedures for Growth

One of the important factors for sustainable startup development is to establish a systematic accounting process. Professional accounting services help businesses build a system from recording transactions, managing costs, reconciling invoices, to preparing periodic financial reports.

The “lean accounting” method is applied to small startups to minimize accounting errors, save on personnel costs and increase transparency. Thanks to this process, startups can clearly understand the cash flow situation, forecast budgets, evaluate operational efficiency and prepare for fundraising rounds. The standardized process also helps businesses easily expand when growing in scale or developing new products.

BUILD A SYSTEMATIC ACCOUNTING PROCESS NOW

4. Outsourcing vs. In-house: What’s Smarter for a Startup Budget?

With limited budgets, many startups have difficulty recruiting, training, and managing internal accounting staff. Compared to building an in-house team, outsourcing accounting services offers many benefits:

Save on recruitment costs, salaries, and benefits for accounting staff.
Receive in-depth expertise from experienced experts handling complex and diverse business operations.
Flexibly expand or narrow services according to actual needs without long-term constraints.
Ensure accounting standards and tax compliance are maintained.

Many FDI startups in Vietnam choose to outsource right from the company’s establishment to focus resources on product and market development, instead of worrying about daily accounting operations.

Criteria	In-house	Outsourcing Accounting Services
Cost	High (salaries, benefits, training, insurance, office)	Lower, pay flexibly based on service package
Expertise	Limited to staff capabilities	Experienced specialists across multiple areas
Flexibility	Hard to adjust team size	Easy to scale services up or down
Legal Compliance	Depends on staff, prone to errors	Standardized, tax-compliant
Implementation Time	Time-consuming recruitment & training	Immediate, no waiting time

With limited budget and diverse business processing needs, outsourcing accounting is an effective solution to help startups save costs while ensuring accounting and tax standards.

5. How Vina TPT Supports Startups with Scalable Accounting Solutions

Vina TPT Accounting Service supports startups with a comprehensive accounting system:

Building a bookkeeping system, managing cash flow and preparing periodic tax reports.
Designing flexible processes for each stage of business development.
Ensuring all accounting data is transparent, accurate and easy to control.
Consulting on financial strategies: controlling costs, optimizing cash flow, preparing for fundraising.
Helping startups focus on products and expanding the market without worrying about accounting – tax – compliance issues.

Contact Vina TPT for free consultation and to build a professional accounting system, helping startups manage finances effectively and comply with the law right from the first steps.

BOOK A FREE CONSULTATION

Lasted News, Company Formation

Top 20 Sectors for Business Opportunities in Vietnam

Posted on 25/11/202510/02/2026 by ASS

1. Why Vietnam Is a Hotspot for Business

Business opportunities in Vietnam are abundant as the country emerges as one of Southeast Asia’s most attractive investment destinations, thanks to its consistent GDP growth, rapidly expanding middle class, and strong push toward industrialization. Major cities such as Ho Chi Minh City, Hanoi, Da Nang, and Hai Phong are witnessing rising consumer demand across multiple sectors, creating fertile ground for new business models and foreign startups.

FDI inflows continue to surge, with Vietnam recording one of its highest investment levels in recent years. This momentum is drawing businesses from Japan, South Korea, Singapore, the US, India, and beyond, all seeking opportunities in a market that is young, dynamic, and full of untapped potential.

In the following sections, we’ll explore key industries currently experiencing strong growth – helping foreign entrepreneurs identify where the most promising opportunities lie.

EXPLORE BUSINESS OPPORTUNITIES IN VIETNAM

2. Most Profitable Sectors to Consider

When considering business opportunities in Vietnam, investors should focus on industries with high profit potential, strong market demand and sustainable development trends. Below are 20 prominent industries:

F&B: The food and beverage industry is still leading thanks to strong consumer demand, especially for restaurant, cafe and fast food chains under the franchise model. The market is oriented towards experience, quality and service, bringing stable profits to investors.
Retail: Traditional retail and e-commerce are growing rapidly thanks to the expanding middle class and increasingly popular online shopping habits. Convenience store models, specialty stores and e-commerce are creating high-profit opportunities.
Logistics and Supply Chain: Vietnam is becoming an export manufacturing hub, leading to a large demand for warehousing, transportation and fulfillment for e-commerce. The trend of investing in smart logistics and automated warehouses is prominent.
Education & Training: Foreign language centers, soft skills training, STEM and e-learning are growing strongly, especially with startups targeting Gen Z and the FDI market.
Tech Startups: Fintech, healthtech, applications and enterprise software are global investment trends, with high profit potential thanks to the ability to expand rapidly and integrate new technologies.
Tourism & Hospitality: The tourism and hospitality industry has recovered strongly after the pandemic, especially experiential services, homestays and high-end resorts.
Healthcare & Wellness: International clinics, health care, spas and fitness meet the growing needs of the middle class.
Renewable Energy: Solar power, wind power and clean energy solutions are prioritized by investment incentives, while meeting global sustainability trends.
Real Estate & Property Management: Apartments, urban areas, offices for rent and logistics real estate are increasing in price thanks to high demand for housing and commerce.
Manufacturing & Supporting Industries: Manufacturing components, mechanics, household appliances for FDI and export, in line with preferential policies and supply chain connections.
Automotive & Mobility: Electric vehicles, repair services, logistics and auto parts following the green transformation trend and government support mechanisms.
Agriculture & Agritech: Clean agricultural products, food processing, agricultural technology solutions to increase productivity and meet export needs.
Consumer Electronics: Smart home appliances, smartphones and laptops with a dynamic young market that easily accepts new technology.
Beauty & Cosmetics: Spa, imported cosmetics and skincare are growing strongly thanks to the need for personal beauty and international service standardization.
Fashion & Apparel: Clothing, children’s fashion, online fashion to meet the trend of personalization and online shopping.
Media & Entertainment: Digital content, movies, games, podcasts are booming thanks to the online entertainment habits of young people.
Financial Services: Fintech, electronic payments, personal and business financial management following the digital trend.
Professional Services: Law, accounting, management and tax consulting to meet the growing needs of FDI enterprises and startups.
Green Construction: Environmentally friendly construction materials, smart homes following the sustainable and energy-saving trend.
Food Processing & Export: Food processing, export of specialty agricultural products according to international standards, taking advantage of abundant raw materials and FDI investment in export.

These industries not only bring attractive profits but also suit modern consumption trends, opening up long-term opportunities for investors who know how to grasp the market and combine business strategies in the right direction.

3. Challenges New Investors Must Anticipate

Despite Vietnam’s strong potential, new foreign investors still face two major challenges: legal complexity and language barriers.

FDI enterprises must navigate stricter procedures in company registration, business licensing, and tax compliance, while differences in language and legal interpretation often slow down operations or create unnecessary risks.

However, with Vietnam’s commitment to international integration, investors are not alone. The market now has many professional corporate advisory and legal-compliance service providers that can support businesses from day one especially those able to work fluently in English and understand the expectations of foreign founders.

Vina TPT Accounting Service is one of the trusted partners in this space, offering end-to-end support in company formation, accounting, financial reporting, and compliance for FDI enterprises. This ensures investors can enter the market smoothly, stay compliant, and focus on growing their business.

4. Strategic Approaches to Enter These Sectors

When entering the Vietnamese market, foreign investors can choose several effective approaches such as setting up a 100% foreign-owned company, partnering with local businesses, franchising, or pursuing M&A. Each option offers different levels of control, speed, and market access but all require strict compliance with Vietnam’s legal and licensing framework.

To avoid delays and risks, many investors rely on professional business formation and compliance partners. Vina TPT Business Formation supports foreign businesses with investment registration, company establishment, accounting, and licensing procedures, helping investors start operations quickly, stay compliant, and focus on growth.

5. How Vina TPT Supports Smart Market Entry

Vina TPT provide a full range of services:

Consulting on suitable investment and company structure
Preparing all legal documents for foreign investors
Company registration and obtaining required business licenses
Accounting, tax, and compliance support for FDI businesses
Ongoing advisory to ensure smooth and lawful operations in Vietnam

Turn Vietnam’s top business opportunities into real results.

Partner with Vina TPT Business Formation for fast, smooth, and compliant market entry.

Ready to expand to Vietnam? Explore our business setup services

Accounting & Tax, Lasted News

Essential Tax Preparation Services Checklist for Year-End in Vietnam

Posted on 25/11/202515/04/2026 by ASS

1. Year-End Tax Pressure: Why Many Companies Struggle in Vietnam

Tax preparation services play a crucial role during the end-of-year period, which is always the peak time for businesses in Vietnam, especially in tax work. Many businesses are overloaded when having to suddenly process data, constantly update changes in tax policies, and at the same time prepare decision documents. The lack of specialized personnel or the asynchronous accounting system makes it easy for businesses to complete, lightly or completely fulfill tax obligations.

The system is often discovered to be accessed, fined for administrative violations or increased risks in tax payments and audits. Therefore, using Vietnamese tax consultants to support early preparation and control helps businesses significantly reduce pressure at the end of the year.

2. Core Tax Preparation Tasks Every Company Must Complete

Before entering the year-end settlement stage, every business in Vietnam must complete a number of mandatory tax tasks. These are fundamental tasks that directly affect financial reports, tax obligations and compliance throughout the fiscal year. Complete and correct implementation from the beginning helps businesses minimize errors, avoid the risk of being overcharged or fined, and ensure consistent data between the accounting system and the tax authority.

2.1. Consolidation and reconciliation of value added tax (VAT)

Businesses using tax preparation services must also review all electronic invoices issued and received throughout the year, including both output and input invoices. The reconciliation process must ensure that each invoice is valid, contains complete information in compliance with regulations, and is recorded in the correct accounting period. Simultaneously, businesses need to calculate deductible VAT, VAT payable, and prepare accurate reports in the prescribed format.

2.2. Personal Income Tax (PIT) Finalization

At the end of the year, businesses must summarize all employee income, including salaries, Tet bonuses, allowances, benefits and other payments. This is accompanied by checking tax codes, residence status, family deductions and comparing all insurance payment data. This is a mandatory step to ensure accurate PIT finalization records and avoid additional tax obligations for employees.

2.3. Calculating and preparing corporate income tax (CIT) declarations

Businesses need to compile all revenue in the year, classify valid and invalid expenses according to tax regulations. Items such as depreciation, loan interest, hospitality expenses, management expenses from parent companies, associated service fees, etc., must be carefully reviewed to avoid exclusion during tax inspections. After reviewing, businesses determine taxable profits and prepare annual CIT declarations.

2.4. Review import tax and import VAT (if any)

For businesses with import activities, it is necessary to check HS code, customs value, customs declaration and tax paid during the year. This review helps ensure data is consistent with the customs system and avoid tax arrears or incorrect declaration of product codes leading to additional collection.

2.5. Compare accounting data with all tax declarations during the year

Before the end of the fiscal year, businesses must compare data between accounting books and submitted tax declarations. Any discrepancies between revenue, expenses, VAT, PIT or CIT need to be adjusted immediately to avoid risks when preparing financial statements or when tax authorities inspect.

3. Common Errors Companies Make at Year-End

Many businesses make the same mistakes every year due to subjectivity or lack of experience in processing tax data. One of the most common mistakes is under- or over-reporting revenue because the data between internal accounting and sales software is not fully reconciled. Some businesses also miss expense documents or use invalid invoices, leading to disqualification when finalizing.

Late submission of declarations is also a serious problem because businesses can be fined by the day and have to pay late payment fees. Many units also make mistakes in classifying deductible and non-deductible expenses, leading to large discrepancies when calculating corporate income tax.

If not prepared early, these mistakes will put businesses at risk in the following year, especially when the tax authority conducts an in-depth inspection.

AVOID YEAR-END TAX MISTAKES – BOOK EXPERT SUPPORT

4. How Vina TPT Tax Consulting Ensures Accurate and Compliant Year-End Filing

To help businesses finalize taxes accurately and on schedule, Vina TPT applies an optimized and highly compliant year-end tax process. Our approach minimizes risks, shortens processing time, and ensures all documents meet Vietnamese tax regulations.

Here is what we can offer you:

Optimized workflow for completing year-end tax records quickly and in full compliance.
Direct expert consultation to understand the business model, assess tax risks, and propose the right compliance plan.
Free initial advisory session so businesses clearly understand all fiscal-year obligations.
Detailed document checklist to guide businesses in preparing required paperwork.
Secure document collection system that reduces time spent compiling files.
Error-prevention support, helping avoid missing invoices, incorrect payment methods, or non-deductible expenses.

Contact Vina TPT for free consultation and complete year-end tax reports accurately.

BOOK A FREE CONSULTATION