Vietnamese Prime Minister Pham Minh Chinh has instructed the Ministry of Finance to coordinate with relevant agencies to conduct a comprehensive review of Vietnam’s tax policies with other countries, particularly those with strategic or comprehensive strategic partnerships such as the U.S..

The directive, recently signed by the prime minister, outlines urgent tasks and solutions to help Vietnam adapt flexibly and effectively to global and regional economic shifts while maintaining growth targets, stabilizing macroeconomic conditions, controlling inflation, and ensuring major economic balances in 2025 and beyond.

The document highlights the increasing unpredictability of the global economy, with intensifying strategic competition, emerging risks in financial and real estate markets, and new trade and tariff policies introduced by some countries.

In response, Vietnam aims to reinforce its economic and trade policies to navigate these challenges.

The Ministry of Foreign Affairs has been tasked with promoting diplomatic and economic relations, particularly with key trading partners, to strengthen Vietnam’s global economic position.

The Ministry of Industry and Trade must urgently finalize an action plan to ensure balanced and sustainable trade, focusing on complementary trade relations rather than direct competition.

The plan will include measures to diversify markets, expand exports, promote trade facilitation, and maximize the benefits of existing free trade agreements while pursuing new accords with high-potential markets such as the Middle East, Africa, Latin America, Central Asia, India, and Brazil.

Additionally, the ministry has been assigned to enhance its oversight of trade practices to prevent unfair competition and safeguard Vietnam’s reputation.

Efforts will be made to tighten control over product origins, combat smuggling, and address concerns about tariff evasion through unhealthy foreign investments.

The Ministry of Finance will lead the tax policy review, focusing on ensuring fairness, balance, and mutual benefits in Vietnam’s tax arrangements with major economic partners.

The prime minister has emphasized the need for adjustments in tax rates for certain goods to reflect the evolving trade landscape. These proposed changes must be developed quickly and submitted for approval within the month.

Monetary policy adjustments are also on the agenda.

The State Bank of Vietnam has been ordered to formulate new strategies to strengthen cooperation with international partners in payments and financial transactions, ensuring Vietnam remains competitive in the global financial system.

Beyond trade and finance, the directive also addresses Vietnam’s approach to visas, work permits, and residency policies to support foreign investors and skilled workers.

The Ministry of Foreign Affairs, the Ministry of Public Security, and the Ministry of Home Affairs have been tasked with reviewing and refining regulations to make it easier for foreign professionals to work and live in Vietnam.

This includes expanding visa exemptions, streamlining e-visa procedures, and simplifying work permit requirements for high-priority sectors.

The government is also exploring new policies to issue temporary residence cards and long-term residency permits to attract and retain foreign talent.

The prime minister’s directive comes as Vietnam faces growing concerns over potential tariff barriers, particularly from the U.S., on key exports such as wood products.

The government’s proactive approach aims to ensure a fair and stable trade environment while protecting Vietnam’s economic interests.

With these measures, Vietnam is positioning itself to adapt to global economic changes, strengthen trade partnerships, and create a more favorable business climate for domestic and foreign enterprises alike.

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