The corporate income tax rate for activities other than those of the extractive industries was 22 per cent in 2014, which will be reduced to 20 per cent in 2016. Reduced tax rates apply for new investments in sectors encouraged by the Vietnamese government.

VAT rates range from zero to 10 per cent and an excise tax of 10 to 65 per cent is levied on alcoholic beverages and tobacco as well as certain luxury goods (source: PricewaterhouseCoopers, Vietnam Pocket Tax Book 2014, 2014). Tax compliance is tedious, requiring 872 man-hours per year, among the highest in the world (source: The Word Bank, Time to prepare and pay taxes (hours), Dec 2014).