FDI enterprises make significant contributions to state budget

Dong Nai province is currently home to nearly 2,200 active foreign direct investment (FDI) enterprises. Over the years, FDI firms have consistently played a key role in contributing to the province’s state budget.

Corn seed production at  C.P. SEEDS (Vietnam) Co., Ltd., a subsidiary of Thailand’s C.P. Group

According to the 2025 state budget revenue estimate, Dong Nai province’s domestic budget collection is projected to exceed VND 48.8 trillion. Of this, revenues from FDI enterprises are expected to account for over 28%, or more than VND 13.7 trillion.

Domestic state budget revenue is divided into six major sources: revenue from centrally managed state-owned enterprises (SOEs), locally managed SOEs, FDI enterprises, non-state industry and commerce taxes, land-related revenues, and other sources. Among them, revenue from FDI enterprises has been a crucial “piece” of the province’s budget revenue for many years.

Some FDI enterprises are among the province’s top taxpayers, including C.P. Vietnam Livestock Joint Stock Company (Thailand), Ajinomoto Vietnam Co., Ltd. (Japan), TKG Teakwang Vina Joint Stock Company (South Korea), YKK Vietnam Co., Ltd. (Japan), and HS Hyosung Vietnam Co., Ltd. (South Korea).

Not only ranking among the top in Dong Nai, CP Vietnam has also consistently been among the leading FDI taxpayers nationwide in recent years. In the first six months of 2025 alone, C.P. Vietnam Corporation contributed over VND 1 trillion to Dong Nai’s state budget, making it the province’s top taxpayer.

General Director of C.P. Vietnam Corporation Pawalit Ua-Amornwanit said that in recent years, the company has been striving to expand production and business operations under environmentally friendly models, applying modern science and technology, and enhancing economic value for the agricultural sector in both Dong Nai and Vietnam as a whole. Alongside the goal of developing into a modern enterprise, C.P. Vietnam Corporation always complies with state regulations, particularly in fulfilling tax obligations to the state budget.

Assessing the compliance of FDI enterprises with tax obligations, Tran Quang Ninh, Head of Enterprise Support Management Department 1, Dong Nai Provincial Tax Department, said that FDI enterprises have maintained stable growth in production and business activities while strictly following tax policies.

The Dong Nai Provincial Tax Department has actively disseminated and implemented tax regulations for FDI enterprises in tax administration. Key issues of public concern include policies on tax deferrals and reductions, VAT refunds, tax declaration, and tax obligations. In particular, VAT refund management for FDI enterprises has recently been given special attention. This undertaking has helped firms maintain quick capital turnover, thereby boosting production and business activities. In addition to refunds, FDI enterprises also receive support in understanding and applying new tax regulations and policies, ensuring their operations are not disrupted.

Speaking on tax compliance and the department’s approach to supporting FDI enterprises in the coming period, Nguyen Toan Thang, Director of the Dong Nai Provincial Tax Department, emphasized that the province places great importance on FDI enterprises’ fulfillment of tax obligations. In recent years, FDI enterprises have contributed more than 30% of the province’s total state budget revenue across various sectors. This figure is considered one of Dong Nai’s sustainable revenue sources, which the province continues to prioritize by updating and implementing new policies, strengthening inspections to prevent revenue loss, and paying close attention to issues such as transfer pricing, VAT refunds, and other tax-related matters.

According to Dong Nai Provincial Tax Department, in the first eight months of 2025, the province’s domestic budget revenue reached more than VND 42 trillion, fulfilling 86% of the annual estimate and marking a 30% increase year-on-year, with FDI enterprises contributing over VND 12.4 trillion, accounting for more than 33% of the total domestic revenue during the period.

In addition, Director Nguyen Toan Thang highlighted that Dong Nai now has nearly 2,200 FDI enterprises in operation. To improve tax management efficiency and create a more favorable environment for businesses, the tax sector is implementing measures to upgrade tax administration infrastructure, promote taxpayer compliance, and accelerate digital transformation in tax management, including e-invoices, the eTax Mobile app, and online consultation on tax policies. Each year, the tax sector also maintains dialogue with taxpayers to promptly address difficulties, find solutions together with enterprises, and recognize those that demonstrate good compliance with tax laws and policies.

By Ngoc Lien – Translated by M.Nguyet, Minho