Why Now Is the Best Time for Australian Businesses to Expand into Vietnam: Unlocking Game-Changing Tax Benefits

If you've been thinking about expanding your business into Vietnam, there's no better time than right now. The tax advantages alone could slash your costs, boost your profits, and give you a serious competitive edge—but only if you move fast.

Vietnam is rolling out huge tax breaks, trade agreements, and business-friendly policies designed to attract foreign investors. And Australian businesses have a unique advantage thanks to strong diplomatic ties and exclusive tax incentives.

Let’s break down exactly how these tax benefits work—and why waiting could mean missing out on some of the biggest opportunities.

1. Keep More of Your Profits with the Australia-Vietnam Double Taxation Agreement (DTA)

One of the biggest fears of expanding internationally?

Getting taxed twice—once in Australia and again in Vietnam.

But thanks to the Australia-Vietnam Double Taxation Agreement (DTA), you don’t have to worry about that.

What This Means for You:

✅ Lower Tax on Profits – You won’t pay tax twice on your earnings, which means more money stays in your pocket.

✅ Reduced Withholding Taxes – If you’re sending money between Australia and Vietnam (dividends, royalties, interest), the tax rates are significantly lower than normal.

✅ Tax Offsets in Australia – Any tax you do pay in Vietnam can be offset against your Australian tax obligations, so you're not paying extra.

Why Now?

Vietnam’s tax policies are the most foreign-investor-friendly they’ve ever been. Jump in now, and you can lock in these benefits before future policy shifts.

2. Trade Agreements That Slash Your Costs & Open Up New Markets

Vietnam and Australia are both part of powerful free trade agreements (FTAs) that eliminate or reduce import/export taxes—giving you a massive advantage over businesses that aren’t leveraging them.

How This Saves You Money:

🌏 ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA): Lower tariffs and easier market access for Australian goods and services.

🌏 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Grants duty-free or low-tax entry into Vietnam.

🌏 Regional Comprehensive Economic Partnership (RCEP): Makes it cheaper and easier to do business in Vietnam than ever before.

Why Now?

🔹 Recent tariff cuts have made it even cheaper to enter the market—but these benefits won’t last forever.

🔹 Vietnam is prioritising Australian businesses through these agreements, making it the perfect time to establish yourself before competitors flood in.

3. Corporate Tax Incentives That Make Vietnam Incredibly Profitable

Vietnam already has a low corporate tax rate of 20%, but foreign businesses—especially those in priority industries—can get even bigger tax breaks.

What’s in It for You?

📉 Tax Holidays: Pay zero corporate tax for 2-4 years, followed by reduced rates for up to 9 years.

📉 Preferential Tax Rates: Businesses in manufacturing, agriculture, tech, education, and renewable energy pay as little as 10-15% for up to 15 years.

📉 Investment Tax Deductions: If you reinvest profits into expansion, research, or training, you get additional tax breaks.

Why Now?

Vietnam is actively rolling out new tax incentives to attract businesses like yours. Get in early, and you’ll be positioned to take full advantage.

4. VAT Exemptions & Refunds That Lower Your Costs Even Further

Vietnam has a 10% VAT (value-added tax) on goods and services, but many Australian businesses qualify for exemptions, reductions, or refunds.

How This Helps You:

🔹 0% VAT on Exports: If you’re exporting goods/services from Vietnam, you could pay zero VAT.

🔹 Reduced VAT (5%) on Essential Sectors: If your business is in education, technology, or essential goods, your VAT rate is cut in half.

🔹 VAT Refunds: Foreign businesses can apply for VAT refunds, putting more cash back in your business.

Why Now?

Vietnam has recently introduced even more VAT reductions as part of post-pandemic recovery efforts. Get in now while these policies are still in place.

5. Import Duty Exemptions That Make Doing Business Cheaper & Easier

High import taxes can kill your profit margins—but Vietnam is offering special import tax exemptions for foreign businesses.

📌 Duty-Free Imports for Priority Sectors – If your business is in high-tech, renewable energy, or education, you won’t pay import tax on equipment.

📌 Tax-Free Raw Materials & Machinery – Many Australian businesses can import what they need without paying duties.

📌 Customs Fast-Tracking – Thanks to trade agreements, Australian businesses get priority customs clearance, making operations smoother.

Why Now?

🔥 Vietnam’s import tax policies are at their most business-friendly right now. Enter the market early, and you’ll enjoy these benefits before any shifts in policy.

Why Waiting Could Cost You

The tax benefits Vietnam is offering aren’t permanent—they’re part of an active push to attract foreign investment. As the market becomes more competitive, incentives will tighten, and early movers will have a massive advantage.

If you move now, you can:

✅ Secure long-term tax advantages while Vietnam’s policies are still investor-friendly.

✅ Establish yourself in the market before competitors flood in.

✅ Save hundreds of thousands on taxes, tariffs, and duties.

✅ Take full advantage of government-backed incentives before they shift.

At AusViet Bridge, we specialise in helping Australian businesses navigate Vietnam’s tax, legal, and investment landscape so you can maximise every opportunity.

📩 Thinking about expanding? Let’s chat about how you can make the most of these benefits. 

Contact us today!