Ministry of Finance say considering repeat of 2022 rate cut from 10% to 8% on basics to boost flagging growth
The Vietnamese Finance Ministry has indicating it will repeat into 2023 a VAT rate cut on basic supplies. The Vietnamese economy growth is slowing: Q1 2023 growth was 3.3% compared to 5.9% at the same time last year. The government is concerned about living standards and liquidity for consumers.
Whether the 2% will be cut off all or a limited range of goods and services is to be determined. In 2022, the following supplies were given a 2% VAT cut: IT; production and mining; real estate; chemicals; and financial services
