New tax frameworks are expected to help enterprises get more funding and expand domestic production, photo Le Toan

According to the draft decree on guiding the implementation of the Law on Corporate Income Tax (CIT), which has been submitted for approval, the Ministry of Finance proposes expanding incentives, extending periods of tax exemption and reduction, and applying lower tax rates for prioritised projects.

These aim to support businesses and promote investment in key sectors and priority areas.

Under the draft, enterprises with income eligible for incentives under this law will be exempt from CIT for four years and benefit from a 50 per cent tax reduction for the following nine years.

This exemption and reduction policy also applies to income generated from enterprises operating in vocational education and high-level skills training, provided they are located in incentivised areas.

If such enterprises operate outside these incentivised areas, the four-year tax exemption still applies, but the 50 per cent tax reduction is limited to a maximum of five subsequent years.

For certain other categories, the tax incentives are defined as a two-year exemption and a 50 per cent decrease for the following four years. In the case of new ventures in especially encouraged sectors, the government is authorised to extend the exemption and reduction period up to 1.5 times the standard duration mentioned above, provided that the total incentive period does not surpass the lifespan of the project.

The draft specifies that the tax exemption and reduction period is calculated from the first year the enterprise generates taxable income from the undertaking. If the enterprise does not have taxable income within the first three years of generating revenue, the exemption and reduction period will start from the fourth year.

The draft also includes detailed provisions regarding tax incentives for business expansion. If an enterprise expands its operations, whether by increasing scale, enhancing capacity, upgrading technology, reducing pollution, or improving the environment, any additional income generated from the expansion will receive the same tax incentives as the existing scheme for the remainder of the applicable period.

The draft decree also proposes a preferential tax rate of 10 per cent for 15 years for income from certain new projects in incentivised sectors or in areas with difficult or extremely difficult socioeconomic conditions. Eligible areas include high-tech zones, high-tech agricultural zones, dedicated digital technology parks, and economic zones subject to tax incentives.

Additionally, a 10 per cent tax rate without a time limit will apply to specific cases, such as enterprises operating in incentivised sectors within incentivised locations; publishers, cooperatives, and cooperative unions operating under current regulations; and media agencies carrying out activities aligned with priority sectors.

A tax rate of 15 per cent is proposed for income generated from specific business activities not located in incentivised areas.

For new initiatives in certain priority sectors, implemented in economic zones or areas with difficult socioeconomic conditions (but not in areas qualifying for special incentives), a preferential tax rate of 17 per cent will be applied for a period of 10 years. For certain specific activities, the 17 per cent tax rate may be applied indefinitely.

These consist of new investments with capital of $240,000 or more, those producing globally competitive products, achieving annual revenue of $800 million within five years of revenue generation, consistently employing 6,000 workers or more, or investing in essential economic and technical infrastructure.

The draft decree, once enacted, is expected to create momentum for the country to pull in more funding and expand domestic production.

Figures from the National Statistics Office showed that in the first seven months of 2025, the number of businesses registering to halt performance hit 88,600, up 13.6 per cent on-year.

Moreover, 41,500 enterprises halted operations to await dissolution procedures, up 16.7 per cent on-year; and 14,300 businesses completed such procedures, up 20.5 per cent on-year. On average each month, 20,600 enterprises left the market.

CIT law amendments boast exceptional sci-tech incentives Vietnam is drafting major changes to its corporate income tax legislation, offering unprecedented incentives in sci-tech and digital transformation.

Smaller businesses the focal point of CIT law amendments Hundreds of thousands of smaller enterprises in Vietnam are set to benefit from a reduction in corporate income tax from next year, meaning more opportunities to improve their competitiveness.

CIT specifics address smaller firms Hundreds of thousands of micro- and small-sized enterprises in Vietnam will be entitled to a decrease in corporate income tax from this October, meaning more opportunities to ameliorate their competitiveness.

Since early August, Vietnam’s monetary market has shown fresh signals regarding interest rate trends. According to the latest report from Bao Viet Securities, deposit rates have inched up at several key maturities after remaining relatively low in previous months.

Specifically, the average six-month deposit rate rose by 0.01 percentage points to 4.48 per cent, while the 12-month rate increased from 5.04 to 5.07 per cent.

This trend highlights a divergence in the banking sector. While state-owned commercial banks have largely maintained deposit rates at major maturities, many private banks have adjusted rates upward to attract deposits.

For instance, at its July 31 rate adjustment, Eximbank raised deposit rates by 0.1 percentage points for terms of 12 months and above, leaving shorter-term deposits largely unchanged. TPBank also increased rates by 0.1 percentage points across all tenors below 12 months, reflecting an effort to remain competitive in attracting deposits.

Market data as of August 8 show deposit rates for short-term tenors of one to three months ranging from 1.6 to 4.1 per cent per year, medium-term deposits of six to nine months at 2.9-5.25 per cent, and 12-month deposits at 3.7-5.6 per cent.

Saigonbank offered the highest 12-month savings rate at 5.6 per cent, followed closely by BVBank at 5.55 per cent, while NCB, Nam A Bank, BAC A BANK, and Vietbank each applied 5.5 per cent.

According to Bao Viet Securities, these adjustments came shortly after the State Bank of Vietnam (SBV) convened a meeting with commercial banks in early August, reaffirming its commitment to a flexible monetary policy and sustained liquidity support. The SBV urged banks to implement measures to reduce deposit rates to stabilise the money market and create space for lower lending rates.

“With inflation under control and exchange rate pressures moderate, the SBV is likely to maintain operating rates, deposit rates, and lending rates at relatively low levels. This is considered one of the key tools to stimulate credit demand and support economic growth,” the report noted.

MB Securities’ (MBS) latest report also echoed this view, highlighting that after a modest dip in June, deposit rates began edging up again in July. TPBank, VPBank, and Eximbank raised their deposit rates by 0.1-0.2 percentage points per year across maturities ranging from one to 36 months.

“The upward adjustment reflects an ongoing imbalance between credit growth and deposit mobilisation,” the report said. “By July 29, system-wide credit had expanded 9.8 per cent compared with the end of 2024 and 19.8 per cent on-year, according to the SBV.”

Therefore, MBS estimated that credit growth currently outpaces deposit growth by 1.3–1.5 times, creating pressure on private lenders to raise deposit rates to maintain funding stability.

MBS expects deposit rates to remain under pressure for the rest of 2025, particularly after the SBV granted banks additional credit room to meet the economy’s capital needs. At the same time, the central bank continues to urge institutions to implement synchronised measures aimed at lowering deposit rates, thereby creating scope for reduced lending rates.

Market analysts largely share this assessment. Dinh Duc Quang, managing director of the Currency Trading Division at UOB Vietnam, said that credit growth, which had already approached 10 per cent in the first half of the year, could expand by 18-20 per cent for the whole of 2025 under the current interest rate environment.

However, he noted that commercial banks’ capacity to further reduce VND deposit and lending rates in the remaining months is limited, as August deposit rates were only 0.2-0.4 percentage points lower than the same period in 2024, depending on tenor.

“These levels remain broadly in line with international USD rates and recent USD/VND exchange rate developments,” Quang told VIR. He added that external conditions, such as modest tariff impacts and successful stock market upgrades attracting foreign capital, could potentially push VND rates down by 0.5-0.75 percentage points.

Nguyen Hoang Linh, head of Research at Vietcombank Fund Management, said that the scope for further interest rate cuts is narrow. “Given the divergence between credit growth and money supply growth, the room for commercial banks to continue reducing rates is limited, and any further cuts will largely depend on external factors,” he said.

Linh underlined the pivotal role of the SBV in balancing monetary objectives, noting that interest rates remain one of the most important tools in the central bank’s multi-objective policy. He added that sustaining low rates and stability also requires coordinated government efforts, including accelerated public investment, improvements to the investment climate, boosting exports, and market diversification.

SSI, one of Vietnam’s leading securities firms, is conducting a private placement of 104 million shares to 18 professional investors, aiming to raise VND3.25 trillion ($130 million). Daiwa Securities has registered to buy nearly 16 million shares at VND31,300 ($1.25) each, a transaction worth over VND497 billion (around $19.9 million).

Daiwa Securities Group Inc. is already SSI’s largest shareholder, holding over 301 million shares, equivalent to over 15.25 per cent stake in the company. If the transaction is successful, Daiwa’s shareholding will increase to over 317 million shares. The transaction is scheduled to take place from August 29 to September 26.

Daiwa Securities Group is one of Japan’s ‘Big Four’ securities conglomerates, alongside Nomura, SMBC Nikko, and Mizuho. Established in 1902, the group operates in various sectors, including brokerage, investment, and asset management.

In 2011, Daiwa became a strategic shareholder of SSI by acquiring a 20 per cent stake. Last November, Daiwa exercised its right to purchase an additional 23.2 million SSI shares in a rights issue for existing shareholders.

SSI’s Board of Directors approved a plan on August 12 to offer more than 104 million shares in a private placement to 18 professional investors, including 14 institutions and four individuals.

At VND31,300 ($1.25) per share, the company aims to raise VND3.25 trillion ($130 million), with half allocated to investing in certificates of deposit and half for margin lending.

SSI recorded operating revenue of VND2.99 trillion ($119.6 million) in the second quarter of 2025, up nearly 30 per cent on-year. After-tax profit reached VND968 billion ($38.7 million), the highest in nearly four years.

For the first six months, SSI achieved revenue of VND5.15 trillion ($206 million) and profit of VND1.8 trillion ($72 million), up 20 per cent and 11 per cent respectively compared to the same period last year, surpassing 54 per cent of its annual target.

As of June 30, SSI’s total assets reached nearly VND92 trillion ($3.6 billion), an increase of VND19 trillion ($760 million) from the beginning of the year. Equity stood at approximately VND27.7 trillion ($1.17 billion), while margin lending hit a record of VND32.8 trillion ($1.3 billion), providing significant momentum for SSI to continue its strong performance in the upcoming quarters.

Sumitomo Corporation and SBI Holdings acquire stakes in FPT’s AI Japan facility Sumitomo Corporation and SBI Holdings will each invest 20 per cent in FPT Smart Cloud Japan, a subsidiary of FPT Corporation.

SCGP acquires additional 30 per cent stake in Duy Tan Plastics SCG Packaging Public Co., Ltd. (SCGP) announced on June 10 that it has strengthened its consumer packaging business through an investment in Duy Tan Plastics Manufacturing Corporation (Duy Tan JSC).

E-commerce credibility at stake as Vietnam moves to curb counterfeit goods Vietnam is set to tighten oversight of livestream sales and digital advertising amid rising concern over counterfeit goods on e-commerce platforms, in a bid to protect consumer trust and ensure fair competition.

Altri to acquire AeoniQ stake, scaling climate-positive textile yarn The deal accelerates global efforts to commercialise sustainable, carbon-negative fashion materials.