Vietnam readies another sales tax cut to prop up flagging economy

Value-added tax to decrease to 8% as weak exports bite

20230426N Vietnam Vinfast

Vinfast cars at a port in Haiphong city, Vietnam, to be shipped to the U.S. A decline in exports has hurt the country's economy. © Reuters

YUJI NITTA, Nikkei staff writer

HANOI --  Vietnam is preparing to lower its value-added tax just four months after ending the previous round of cuts as stagnating exports weigh on the economy.

Le Minh Khai, the deputy prime minister in charge of the economy, this month signed off on a proposal to decrease the VAT rate. The Finance Ministry, which crafted the proposal, is finalizing the authorization of the tax plan.

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