Soaring tax arrears reach tens of trillions of Vietnamese dong
At the end of January, the Tax Department of Ho Chi Minh City released a list of 3,225 organizations and individuals owing more than VND9.7 trillion (US$370 million) in taxes. Real estate firms accounted for a significant share, with several enterprises recording arrears of thousands of billions of Vietnamese dong.
Leading the list was Vung Tau Paradise Joint Venture Company, owing VND2,066 billion (US$79 million), followed by Golden Hill Investment Joint Stock Company with VND1,568 billion (nearly US$60 million) in unpaid taxes.
Another 11 companies were reported to owe between VND100 billion (US$3.8 million) and nearly VND300 billion (US$11.5 million) each, operating in sectors such as agriculture, real estate, seafood processing, textiles, footwear and biotechnology.
As of December 31, 2025, total tax arrears managed by the Ho Chi Minh City Tax Department had reached approximately VND92,011 billion (US$3.5 billion), an increase of VND26,340 billion (US$1 billion) compared to the same period in 2024. Land-related obligations accounted for VND41,038 billion (US$1.6 billion), or 44.6 percent of the total outstanding amount.
Nearly VND40 trillion (US$1.5 billion) remains unpaid due to unresolved disputes and complaints related to land pricing, land area calculations and compensation deductions, posing challenges for debt recovery. Over the past year, the agency publicly disclosed nearly 160,000 cases of tax debtors through the media and imposed temporary exit bans on 32,820 individuals, involving tax arrears of more than VND8,495 billion (US$324 million), recovering over VND593 billion (US$22.6 million).
Tax authorities have also imposed a series of temporary exit bans on legal representatives of companies with overdue tax liabilities, further strengthening enforcement and debt recovery efforts.
Tax sector rolls out comprehensive 2026 plan to curb rising arrears
In 2026, the tax sector identifies rising arrears as a significant challenge. To strengthen debt management, authorities plan to classify tax debts more precisely by taxpayer group, enabling tailored and effective handling measures.
Key solutions include closely monitoring extended tax and fee payments to prevent new arrears and late-payment penalties; accelerating the automation of debt management systems to eliminate inaccurate or “virtual” debts; and conducting regular performance reviews for each unit and individual, particularly in areas with large outstanding balances.
Authorities will also strictly enforce temporary exit suspension measures to enhance deterrence and improve recovery efficiency. At the same time, they will expand the application of artificial intelligence and machine learning in analyzing e-invoice data, managing tax debts and supporting inspections and audits, while further automating routine operational processes.
For Ho Chi Minh City, where tax arrears represent over 15 percent of total budget revenue, the city’s tax department aims to bring the figure down to under 8 percent of actual collections by the end of 2026 through intensified and coordinated recovery efforts.
