Vietnam's Economy in 2025: Continued Positive Shift

Vietnam is undergoing a sweeping transformation across finance, technology, regulation, and tourism. From its ambitious cashless payment initiatives to a new Personal Data Protection Law and bold personal income tax reforms, these developments are shaping a stronger, more transparent, and opportunity-rich environment for foreign investors, SMEs, and service providers in Vietnam.

In this post, we break down the key changes and what they mean for anyone looking to invest in Vietnam, offer a service in Vietnam, or expand operations amid a fast-evolving Vietnam economy. 

1.  Push for Cashless Payments and Stricter Tax Evasion Enforcement for Businesses in Vietnam

Vietnam is accelerating its transition to a cashless economy. A new directive, issued by the Prime Minister and championed by Deputy Prime Minister Hồ Đức Phớc, calls for ministries, local authorities, and banks to step up efforts to promote digital transactions. The goal: stop tax evasion, reduce crime, and boost efficiency across markets.

• Strict Penalties for Tax Evasion: Deliberate use of cash to evade tax will trigger serious penalties.
• More Oversight on Cash Transactions: Cash payments are increasingly monitored due to links with waste, tax evasion, and money laundering.
• Wider Digital Payment Infrastructure: The State Bank of Vietnam must report progress on its 2021-2025 Cashless Payment Development Plan by December. Banks are urged to roll out better digital payment products and invest in technology.
• Focus on Compliance: The Ministry of Finance is leading inspections on invoice compliance and state budget payments, with a sharp eye on Value Added Tax adherence.

2. Stricter Personal Data Protection Law (Effective January 1, 2026)

Starting January 1, 2026, Vietnam’s Personal Data Protection Law (PDPL) introduces tough new rules for anyone handling personal information—especially businesses.

• Prohibition on Data Trading: The law strictly prohibits the buying and selling of personal data, with exceptions only where explicitly allowed by law.
• Employee Data Deletion: Employers must delete personal data of former employees unless specifically permitted by law or prior agreement.

Also, tighter controls for online platforms were defined. Social media and online communication providers must:

• Clearly inform users about data collection.
• Not collect unauthorized data or require identity images/videos unnecessarily.
• Provide “do not track” options and gain consent before tracking user activity.
• Avoid eavesdropping on communications without consent, unless required by law.
• Publicly disclose privacy policies.

3.  Expanded Credit Growth Targets for Businesses

The State Bank of Vietnam is raising credit growth targets. Lending is increasing, especially for key business sectors, while maintaining control over risk. There’s also a drive to simplify banking processes and lower lending rates.

• Boosted Credit "Room": As of July 2025, outstanding loans have jumped 9.64% since late 2024, moving toward a possible 20% full-year growth. These increases will be carefully managed to avoid overheating the economy.
• Focus on Priority Sectors: New loans will mainly target productive sectors, not speculative or risky areas.

• Lower Lending Rates: Banks are encouraged to adopt cost-saving digital tools and simplify processes, helping businesses in Vietnam and individuals borrow more easily and affordably.

4. Upcoming Personal Income Tax Reform

Vietnam’s Ministry of Finance is planning major changes to personal income tax (PIT) rules to boost equity and spur growth.

• Simpler Tax Brackets: The number of tax brackets may be reduced from seven to five, with wider income ranges for each bracket, making filing easier and boosting compliance.
• Targeted Tax on Real Estate and Securities: Taxes on real estate may shift to being based on actual profits rather than just transfer value. Securities investors could soon choose annual settlement, better reflecting their real income (especially for long-term gains or losses).
• Adjusted Family Deductions: With inflation rising, new proposals aim to raise family deduction levels to ensure fairness, with additional benefits for poorer provinces.

• Support for Digital Content Creators: A proposed expense deduction (up to VND 4 million/month) for creators would ease tax burdens on Vietnam’s dynamic digital workforce.

5. Ho Chi Minh City's Tourism Surge

Ho Chi Minh City (HCMC) has seen a significant boost in tourism, particularly after its administrative merger with Binh Duong and Ba Ria - Vung Tau.

• Record Numbers: July 2025 saw nearly 696,000 international arrivals in just one month—a 75% leap compared to last year.
• Strong 2025 Growth: In the first seven months, the city welcomed nearly 22 million visitors (4.5 million international), driving a 30% revenue surge to over 140,000 billion VND (approx. $5.4 billion).
• Domestic Tourism Boom: The new mega-urban area now has over 14 million residents, creating a robust internal tourism market—fueling demand for everything from half-day trips to family getaways.

• Infrastructure and Experiences: Improved roads and waterways make short, themed tours easy and popular. The city plans to hit 8.5 million international arrivals in 2025 and aims for 12 million by 2026.

Conclusion: Embrace Change, Capture Opportunity

Vietnam in 2025 stands at a pivotal crossroads—poised for rapid modernization but confronting new complexities in technology, compliance, and competition. The shift to cashless payments, stricter data protection, evolving tax norms, and a revitalized tourism sector aren’t isolated changes: they represent a comprehensive transformation of Vietnam's entire business landscape. Now is the time to:

• Switch to cashless operations, adopt secure cashless payment systems and digital tools.
• Update privacy policies, invest in compliance training, and reassess vendor contracts involving customer or employee data.
• Tap into expanded credit.
• Prepare for new tax policies.
• Leverage the booming tourism market.

Ready to navigate Vietnam’s evolving business landscape with confidence? Contact United Consulting Asia today for expert guidance tailored to your growth and compliance needs.