A liquified natural gas storage facility in southern Vietnam.
The adjustments would significantly reduce the Most-Favoured Nation (MFN) import tax applied to World Trade Organization members and the special preferential import tax granted to countries with free trade agreements (FTAs) with Vietnam. Other taxes, including excise tax, environmental protection tax and value-added tax, are also under review to ensure a balanced and competitive tariff framework.
As part of the proposed revisions, the import tax on automobiles under three specific HS codes will be reduced from 64 per cent and 45 per cent to a uniform 32 per cent. Ethanol tariffs will drop from 10 per cent to 5 per cent, while frozen chicken thighs will see a reduction from 20 per cent to 15 per cent.
In the agricultural sector, tariffs on pistachios, almonds, fresh apples, sweet cherries and raisins will be lowered to 5 per cent. Meanwhile, import duties on wood and wood products classified under HS groups 44.21, 94.01 and 94.03 will be reduced from 20–25 per cent to a standardised 5 per cent. For the energy sector, the import duty on liquefied natural gas (LNG) will be cut from 5 per cent to 2 per cent, and methane will have a tax rate of 0 per cent.
The move comes in response to evolving global trade dynamics, including shifts in economic policies, supply chain realignments and increasing competition among markets.
Director of the MoF's Department of Tax Policy Management and Supervision Nguyễn Quốc Hưng emphasised that the proposed amendments to Decree No. 26/2023/NĐ-CP aim to enhance Vietnam’s trade position by improving the balance of imports and exports, diversifying supply chains and maintaining a transparent tax system.
The proposed changes prioritise goods that are not yet produced domestically or are in insufficient supply, ensuring that tariff adjustments support economic growth without undermining local industries, Hưng said.
Special focus is also placed on products with high import value that are of strategic interest to Vietnam’s key trading partners. To maintain compliance with its international commitments, the revised tax rates will not be lower than those set under existing FTAs, the official stressed.
According to economists, these tariff adjustments will enhance Vietnam’s trade competitiveness by making its import tax policies more attractive to investors and businesses. Lowering import duties on essential goods is expected to stimulate production, reduce costs for enterprises and improve consumer purchasing power.
Furthermore, aligning Vietnam’s tariff policies with those of its Comprehensive Strategic Partners will prevent trade distortions and ensure consistency in tax regulations across different markets. By reducing tariff disparities, the Government aims to create a more dynamic and diversified trade environment, strengthening economic cooperation with key global partners.
