The tax cut is welcomed by businesses facing weaker markets, high borrowing costs and limited access to capital.
Ms. Thuy, a ready-made fashion seller at An Dong Market in An Dong Ward, Ho Chi Minh City, said her stall earns around VND2 billion (US$76,000) a year in revenue, with about VND500 million (US$19,000) in profit after expenses. A 30 percent personal income tax cut would save her roughly VND27 million (US$1,030) annually.
Pham Hai Long, General Director of Agrex Saigon Food Joint Stock Company, described the corporate income tax cut as a practical form of support. For a company with VND10 billion (US$380,000) in revenue and a 10 percent profit margin, the 20 percent tax rate would mean VND200 million (US$7,600) in tax. With the 30 percent reduction, the amount would drop to VND140 million (US$5,300).
Pham Xuan Hong, Chairman of the Ho Chi Minh City Textile and Fashion Association, said only about 10–15 percent of its 200 members have annual revenues above VND10 billion (US$380,000). This means most members, especially small and medium-sized enterprises, qualify for the tax relief.
These businesses are grappling with weaker demand, rising borrowing costs and limited access to credit. The tax reduction is expected to ease financial pressure and give them more room to sustain operations.
Prompt implementation needed
Sharing with the reporter of Sai Gon Giai Phong Newsppaer (SGGP), Mr. Nguyen Tien Dung, Deputy Head of the Ho Chi Minh City Tax Department, said the department would promptly roll out the policy after the Ministry of Finance provides detailed guidance. It will also step up public outreach to help businesses and household businesses understand the eligibility criteria and tax incentives.
The Ho Chi Minh City Tax Department has implemented various tax exemption, reduction and deferral measures to support businesses and household businesses. In the first seven months of 2026, it collected nearly VND467 trillion (US$17.8 billion), reaching 74.5 percent of the government-assigned target.
He said the 30 percent tax cut for businesses and household businesses with annual revenue of up to VND10 billion (US$380,000) would ease financial pressure and give them more resources to maintain and expand their operations.
According to government estimates, the tax measure is expected to reduce state budget revenue by around VND3.19 trillion (US$121.5 million) in 2026 and VND3.51 trillion (US$133.7 million) in 2027. The government, however, sees the policy as a short-term measure to strengthen revenue generation over the longer term.
Pham Van Triem, Chairman of the Ho Chi Minh City Association of Small and Medium Enterprises, called for the tax relief to be extended to businesses with higher revenues.
He proposed a 20 percent reduction for businesses with annual revenues of VND10 billion (US$381,000) to below VND30 billion (US$1.14 million), and a 10 percent reduction for those earning VND30 billion–VND50 billion (US$1.14 million-US$1.91 million) a year.
Lawyer Tran Xoa, Director of Minh Dang Quang Law Firm, said an annual budget revenue reduction of roughly VND3 trillion (US$114 million) would be relatively modest compared with total state revenue, while the policy could have a considerable positive impact on the economy during 2026–2027.
Ministry of Finance data indicate that about 2.69 million household businesses, or 99.98 percent of the total, have annual revenues below VND10 billion (US$381,000). The threshold also covers around 865,000 enterprises, equivalent to 81.1 percent of all businesses.
He also urged policymakers to consider tax support for salaried workers. Despite the increase in the monthly family allowance deduction from VND11 million (US$419) to VND15 million (US$572) in 2026, rising living costs continue to weigh on households.
The CPI increased 4.39 percent in the first seven months of 2026, while prices of many essential goods rose faster. He suggested a 30 percent personal income tax reduction for workers in the lower tax brackets to provide direct relief, boost consumer demand and support business activity.
