HSBC sees ‘manageable’ impact of Global Minimum Tax in Vietnam
While the details of the Global Minimum Tax (GMT) are still being finalized, its impact on Vietnam’s inward foreign direct investment (FDI) should be manageable, HSBC said in a monthly report.
Vietnam’s parliament in November 2023 agreed to implement a minimum 15% corporate tax rate for multinational corporations (MNCs), effective January 1, 2024, for MNCs with revenue of more than EUR750 million ($825 million).
In Vietnam, 122 foreign companies will face a steep rise in their tax costs, which will generate an estimated revenue of $600 million per year.

A Samsung plant in Bac Ninh province, northern Vietnam. Photo courtesy of Zing News.
Long before the parliament’s approval of the GMT, concerns had been raised by MNCs operating in Vietnam. The most notable example is Samsung, which is not only the single largest foreign investor in Vietnam, with its exports alone expected to account for 13% of GDP in 2023, but also has three of its affiliates among Vietnam’s top 10 foreign taxpayers.
At the same time as the greenlighting of the tax hike, the authorities are also planning to work on specific incentives in 2024.
“When it comes to investment decisions, tax is a key factor, but it is not the only factor in determining FDI inflows. It is thus important to improve on other metrics, such as infrastructure connectivity, the availability of a skilled workforce, the ease of doing business, and free trade agreements, to name a few,” HSBC researchers commented.
In addition, Vietnam is not the only country that is set to introduce a similar minimum tax rate. Its ASEAN peers such as Indonesia, Malaysia, Singapore, and Thailand are also working towards a similar goal.
In a recent note released earlier this week, Michael Kokalari, chief economist at fund management firm VinaCapital, commented that the implementation of the GMT is unlikely to impede FDI inflows into Vietnam.
He named two reasons to back his argument: First, Vietnam will almost certainly find “workarounds” to essentially rebate some or all of the higher taxes many MNCs will be required to pay the Vietnamese government; and second, tax incentives are not the main motivation for multinational companies to invest in one developing country versus another.
Kokalari asserted that Vietnam remains appealing to FDI investors because wages are less than half those in China but the quality of the workforce is comparable; Vietnam’s geographic proximity to Asia’s high-tech industry supply chains; and Vietnam is in the “friendshoring” cohort of countries at low risk of having tariffs imposed on their exports to the U.S.
Suan Teck Kin, executive director at UOB Global Economics & Market Research, on Thursday reckoned that Vietnam is in a good position to attract more FDI, given its competitiveness and an ongoing supply chain shift to the Southeast Asian region.
Vietnam had a record year in 2023, receiving $36.6 billion worth of FDI, up 32% year-on-year, despite external trade headwinds. The figures indicate that a lot of companies still see Vietnam as an attractive destination over the next five years as supply chain shifts continue with the ongoing regionalization trend, Teck Kin said.
- Read More
Swedish giants H&M, Syre to scale up operations in Vietnam
H&M, a globally renowned fashion brand from Sweden, plans to expand its network of stores in Vietnam to over 20 in the time to come, said CFO Adam Karlsson.
Industries - Sat, June 14, 2025 | 2:16 pm GMT+7
Leading industrial park developer Becamex to gain from Binh Duong province’s merger into HCMC: broker
Becamex IDC Corp, a leading urban and industrial park developer based in Binh Duong, is expected to benefit from the province’s merger into Ho Chi Minh City, with many new development opportunities, according to Vietcombank Securities (VCBS).
Companies - Sat, June 14, 2025 | 8:00 am GMT+7
Vietnam Airlines secures $1.5 bln funding from ING Bank for strategic expansion
Vietnam Airlines and ING Bank have signed an MoU for bilateral financial cooperation, securing capital funding of up to $1.5 billion.
Companies - Fri, June 13, 2025 | 10:56 pm GMT+7
Lawmakers scrutinize dual-city international financial center plan
Discussing a draft resolution on establishing an international financial center in Vietnam, some parliament members have proposed careful consideration of a dual-city model based on regional development strategies and investment efficiency.
Finance - Fri, June 13, 2025 | 10:49 pm GMT+7
Vietnam among world’s most food-self-sufficient nations: study
As concerns mount over the potential for disruptions to global trade, a new study published in the journal Nature Food has identified Vietnam as one of the few countries with a high level of food self-sufficiency, capable of withstanding major interruptions to food imports and exports worldwide.
Southeast Asia - Fri, June 13, 2025 | 10:41 pm GMT+7
Bad debts at Vietnamese commercial banks remain a concern
While the most challenging period for bad debts in Vietnam appears to have passed, potentially irrecoverable debts have reached a record high, accounting for 1.25% of total outstanding customer loans, or more than VND176 trillion ($6.74 billion), according to a new report by research firm Vietnam Report JSC.
Banking - Fri, June 13, 2025 | 7:58 pm GMT+7
Vietnam's galvanized steel major Ton Dong A to focus on domestic sales amid export market woes
Ton Dong A, a leading galvanized steel manufacturer in Vietnam, will focus more on the domestic market due to export difficulties, raising the ratio of domestic sales to 75%.
Companies - Fri, June 13, 2025 | 4:56 pm GMT+7
Vietnam's leading construction materials maker Viglacera appoints new chairman
The board of directors of Viglacera, Vietnam's leading construction materials maker, has appointed Tran Manh Huu as new chairman, succeeding Nguyen Van Tuan.
Companies - Fri, June 13, 2025 | 3:08 pm GMT+7
Vietnam urges Exxon Mobil to accelerate long-delayed Blue Whale gas field project
Vietnam expects the U.S.'s Exxon Mobil to speed up the long-delayed Blue Whale gas field project in line with the contract.
Energy - Fri, June 13, 2025 | 2:06 pm GMT+7
Prime Minister invites Swedish firms to invest in Vietnam's technology infrastructure, renewable energy
Prime Minister Pham Minh Chinh says he hopes Swedish companies will continue to expand their investment in Vietnam's information technology infrastructure, especially in remote areas.
Economy - Fri, June 13, 2025 | 11:28 am GMT+7
Singapore’s Keppel earns $76 mln from partial sale of property complex in southern Vietnam
Singapore-based Keppel Corporation brought in SGD98 million ($76.54 million) from selling a 22.6% stake in a property complex in Vietnam’s southern metropolis of Ho Chi Minh City.
Real Estate - Fri, June 13, 2025 | 8:28 am GMT+7
Thailand tightens e-commerce rules
Thailand is preparing to increase oversight of digital marketplaces, adding rules for certain types of platforms to strengthen consumer protection and ensure responsible e-commerce, Bangkok Post quoted the Electronic Transactions Development Agency (ETDA) as saying.
Southeast Asia - Thu, June 12, 2025 | 10:56 pm GMT+7
Malaysia attracts nearly $21 bln investment in Q1
Malaysia has secured MYR89.8 billion (nearly $21 billion) in approved investments for Q1, a 3.7% year-on-year increase amid a challenging global economic backdrop, according to the Malaysian Investment Development Authority (MIDA).
Southeast Asia - Thu, June 12, 2025 | 10:53 pm GMT+7
Thailand targets faster EV growth
Thailand’s Board of Investment (BoI) is stepping up efforts to promote the electric vehicle (EV) industry by offering more investment incentive packages aimed at supporting the emerging sector and creating additional EV-related jobs.
Southeast Asia - Thu, June 12, 2025 | 10:46 pm GMT+7
Malaysia to hold second round of trade talks with US
Malaysia’s Ministry of Investment, Trade and Industry (MITI) said Minister Tengku Zafrul Aziz is scheduled to travel to Washington D.C. on June 18 for a new round of discussions focused on tariffs.
Southeast Asia - Thu, June 12, 2025 | 10:40 pm GMT+7
Vietnamese banks' bond issuance sees three-fold rise in first 5 months
Vietnamese banks have significantly increased their bond issuance in 2025, with a reported total issuance of VND81 trillion ($3.1 billion) in the first five months of the year.
Finance - Thu, June 12, 2025 | 10:17 pm GMT+7