Foreign companies paid $1.9 billion in corporate taxes to Vietnam last year and now account for one quarter of the tax collections from the largest 1,000 businesses in the country. Foreign contributions more than doubled from the previous year, the government says.
The new report also reveals that 43% of the 1,000 companies are owned by the government itself. Those include the top 10 corporate taxpayers that collectively paid $3 billion. Among them are three state-owned telecommunications companies, five energy companies, and two banks (Vietcombank and VietinBank).
Meanwhile, the share of tax collections from private domestic firms slid from 21% to 18% of the total, suggesting that Vietnam’s vaunted transition from a government-run to free market economy is not just stalling in challenging times — but backsliding, with state-owned enterprises assuming more influence, not less.