Coordinated efforts to help businesses resolve tax issues

In recent meetings and dialogues between provincial leaders and foreign direct investment (FDI) enterprises, issues related to on-the-spot import-export operations and tax refunds have emerged as key concerns, as companies report persistent difficulties and bottlenecks that require resolution.

Manufacturing operations at Chienta Bolt Co., Ltd. (Taiwan) at Long Binh Industrial Park, Ho Nai Ward. Photo: Ngoc Lien

Tax refunds and related incentive policies are seen as critical levers for replenishing capital, stabilizing and expanding operations, enhancing competitiveness, and contributing to local economic growth, businesses say.

Businesses struggle amid unclear tax policies

Vietnam has recently adjusted its regulations on on-the-spot import-export, as well as value-added tax refunds related to these activities, to create more favorable conditions for businesses. However, during the process of updating and applying the new policies, many enterprises, particularly in the textile and garment sector, have faced difficulties. In practice, this has impacted the processing of tax refunds for the affected businesses.

At a meeting with Dong Nai provincial leaders on December 17, 2025, Choi Byung-oh, chairman of the Korea Federation of Textile Industries, speaking on behalf of South Korean textile firms operating in the province, outlined the challenges they are facing and called on local authorities to maintain close engagement and provide more targeted support to businesses operating in the area.

In particular, regarding difficulties related to on-the-spot import–export procedures and value-added tax refunds, Choi Byung-oh called on provincial authorities and relevant agencies to promptly raise the issues with central government bodies and help create a more stable environment for businesses to operate and invest with confidence.

He said that for businesses, tax refunds are a critical source of cash flow, and any disruption can place significant strain on their operations.

Speaking about the difficulties her company is facing, Lee Bok Hwa, Director of Jungwoo Vina Co., Ltd., located in Nhon Trach Industrial Park, Dong Nai Province, said that Jungwoo Vina has been operating in the textile dyeing sector in Dong Nai for 22 years. The company specializes in weaving and dyeing fabrics, which are then supplied to garment manufacturers in Vietnam for the production of fashion items exported to markets worldwide. According to Lee Bok Hwa, this is classified as on-the-spot import-export. However, in recent months, the company has encountered issues with value-added tax refunds and has been unable to utilize the existing refund policy.

She said: “Amendments to the Law on Value-Added Tax took effect in July 2025, yet foreign-invested enterprises in Vietnam face practical difficulties in applying the new provisions. We look forward to timely guidance and clarification from provincial authorities and relevant agencies to ensure smoother business operations.”

In 2025, Dong Nai province attracted more than 3 billion USD in foreign investment, including over 170 newly registered projects with a combined capital of nearly 1.5 billion USD, and capital increases at 173 existing projects totaling almost 1.5 billion USD. The province is currently home to more than 2,000 active FDI projects, with a total registered capital nearing 43 billion USD.  

Partnering with businesses to ease operational hurdles

According to the leadership of the Dong Nai tax authority, many businesses in the province are facing difficulties related to taxation. In response, the provincial tax department has advised the provincial People's Committee to submit a request to the Ministry of Finance for guidance on issues related to on-the-spot import-export activities, as well as the corresponding value-added tax refund procedures.

After listening to the feedback and proposals from businesses regarding tax matters, the local tax authority has made efforts to address issues within its jurisdiction. For matters under the authority of the Ministry of Finance and the General Department of Taxation, specific guidance and direction are required before any resolution can be made.

Regarding tax refunds, current regulations stipulate that businesses must self-declare and self-pay taxes. In practice, many companies have submitted incomplete dossiers or dossiers with issues, prompting tax authorities to conduct inspections and audits. If problems or violations are discovered during these processes, cases are handled in accordance with regulations, or businesses are requested to provide additional documentation and complete their filings.

The tax authority has therefore urged businesses to fully understand tax regulations and strictly comply with self-declaration and self-payment obligations. This endeavor is intended to help minimise risks, reduce errors in tax filing, and avoid delays in tax processing.

For issues that have already been raised with the tax authority, the provincial department said it will act in accordance with guidance as soon as it is issued by the Ministry of Finance and the General Department of Taxation.

Outlining the provincial leadership’s position on resolving tax policy issues, Nguyen Kim Long, member of the provincial Party Standing Committee and Vice Chairman of the Dong Nai People’s Committee, stated at a meeting with the Korea Federation of Textile Industries that Dong Nai always welcomes investors and is fully committed to supporting them.

To help investors conveniently access information on investment promotion and carry out investment procedures in Dong Nai, businesses may contact the provincial Economic and Industrial Zones Authority, which serves as the key liaison between investors and the province. Upon receiving requests from businesses, the authority will coordinate with relevant departments and agencies to respond to inquiries related to land, tax policies, and other concerns, or introduce suitable investment locations.

In cases where guidance has already been issued by central authorities but issues facing businesses in Dong Nai remain unresolved, companies are requested to report directly to the provincial People’s Committee leadership for timely review and resolution.

By Ngoc Lien - Translated by Tam Binh, Minho