European insurance firm predicts Vietnam top-up tax to have minimal impact on FDI

Vietnam’s recently passed top-up tax, a response to the Global Minimum Tax, should not impact how attractive Vietnam is to foreign firms, according to Raphaël Cecchi, an analyst with European credit insurer, Credendo. It may, however, “slightly hit Vietnam’s reputation”  as a low-tax jurisdiction for foreign firms, he says. He lists the following reasons for this assessment:

  • Neighbouring countries are also expected to raise their rates next year;
  • Additional government revenue will be redirected to an investment support fund (eds note: this is unconfirmed);
  • Geopolitical tensions with China driving diversification in supply chains is likely to continue; and
  • Its political stability and business-friendly environment–rated by Credendo as C on a  scale of A to G in which A is the lowest risk and G is the highest risk–and its expropriation risk ranked 3 out of 7.

See also: Global Minimum Tax legislation passed in Vietnam, to start Jan 2024 

Your support keeps this site independent and objective.
If you find value in this work, please consider making a contribution.

Need more convincing?

Our content is free because we believe a rising tide lifts all boats.

By making accurate, independent information accessible to everyone, we help create a more informed, resilient, and empowered business community.

When businesses, investors, policymakers, and everyday readers all have access to clear, unbiased analysis, it leads to better decisions, fairer opportunities, and stronger economic outcomes for all.

That said, while our content is free to read, it costs money to create.

Behind every article is careful research, fact-checking, and expert analysis — all of which require time, skill, and resources.

If you can spare a couple of dollars, your support helps ensure that reliable, unbiased information remains accessible to all.

Create your listing