Vietnam Cracks Down on Tax Evasion: Over $1.3 Billion Recovered in First Half of 2025
Hanoi, Vietnam – In a bold move to bolster state revenue and address economic challenges, Vietnam’s Department of Finance is reporting a substantial increase in tax revenue recovered through intensified inspection efforts in the first seven months of 2025. The crackdown, aligned with the 2021-2025 socioeconomic development plan, is focusing on high-risk sectors and leveraging modernized inspection techniques. This is a developing story, and archyde.com is providing up-to-the-minute coverage.
Aggressive Tax Inspections Yield Significant Results
According to official data released today, the Vietnamese tax sector conducted 27,381 inspections and verifications between January and July 2025 – a figure representing 40.7% of the year’s target and a near-identical level (97.54%) compared to the same period in 2024. However, it’s not just the number of inspections that’s rising; the effectiveness is dramatically improving.
The total amount of money identified for management through these inspections reached nearly 30,765 billion VND (approximately $1.3 billion USD), a remarkable 117.5% increase year-over-year. This includes 9,192.3 billion VND in increased tax revenues, 1,289.1 billion VND in deductions reduced, and a substantial 20,283.4 billion VND in losses prevented. The average income collected per inspection has soared to almost 4 billion VND (roughly $165,000 USD), a 21.3% jump from 2024. Even smaller-scale inspections are yielding more, averaging 250 million VND ($10,300 USD) per review – a 13.1% increase.
Targeting High-Risk Sectors: From Real Estate to Digital Platforms
The Department of Finance isn’t casting a wide net indiscriminately. The focus is laser-sharp on sectors deemed “high-risk” and possessing significant income potential. Key areas under scrutiny include:
- Related-Party Transactions: Investigating potential transfer pricing schemes to ensure fair taxation of multinational corporations.
- E-commerce & Digital Platforms: Addressing the challenges of taxing the rapidly growing digital economy.
- Real Estate: A sector historically prone to underreporting and tax evasion.
- Pharmaceuticals & Cosmetics: Ensuring compliance with tax regulations in these high-value industries.
- Iron & Steel: Combating illicit activities and ensuring accurate tax reporting.
- Insurance: A complete inspection of 78 insurance companies and branches has been completed.
- Mineral Resources: Specifically, sand, stone, and gravel extraction, with local authorities tasked with preventing revenue loss.
Special projects are underway targeting 30 companies issuing employee stock options, 30 real estate firms, 20 iron and steel businesses, 20 gold producers, and jewelers. This proactive approach demonstrates a commitment to tackling complex tax avoidance strategies.
Modernization and Efficiency: A New Era for Vietnamese Tax Enforcement
This isn’t simply about increasing the number of inspectors. The Department of Finance is actively modernizing tax inspection procedures, streamlining administrative processes, and investing in the training of tax inspectors. This modernization is crucial, especially as Vietnam’s economy becomes increasingly sophisticated. The move to eliminate specialized inspection functions, focusing instead on completing pending cases and prioritizing high-risk areas, signals a strategic shift towards efficiency.
Evergreen Insight: The modernization of tax enforcement is a global trend. Countries worldwide are leveraging data analytics, artificial intelligence, and blockchain technology to improve tax compliance and combat fraud. Vietnam’s efforts align with this international movement, positioning the country for sustainable economic growth.
Looking Ahead: Strengthening Tax Governance for Long-Term Stability
The Vietnamese government’s commitment to strengthening tax governance is clear. By focusing on risk prevention, combating budget losses, and tackling tax refund fraud, the Department of Finance is laying the groundwork for a more stable and equitable economic future. The emphasis on data-driven insights, coupled with proactive inspection plans, suggests that these positive results are likely to continue. As Vietnam continues to integrate into the global economy, a robust and transparent tax system will be essential for attracting foreign investment and fostering sustainable development. Stay tuned to archyde.com for continued coverage of this important story and its implications for the Vietnamese economy and beyond.
