Vietnam has formally responded after the European Union added the country to its list of “non-cooperative jurisdictions for tax purposes,” a move that could draw scrutiny from multinational corporations and European investors.
The designation follows a peer review by the Organisation for Economic Co-operation and Development (OECD) covering the 2021–2023 assessment cycle on tax transparency and information exchange standards.
For international businesses operating in Vietnam — or considering entry — the key question is whether the listing signals material regulatory risk or reflects a technical compliance process already being addressed.
Vietnam: Reforms Underway, Cooperation Ongoing
At a press briefing in Hanoi, Foreign Ministry spokesperson Phạm Thu Hằng emphasized that Vietnam values cooperation with the OECD, particularly on tax transparency and governance standards.
She stated that during the OECD review process, Vietnam amended and supplemented several legal frameworks, including:
According to the government, these reforms aim to align Vietnam more closely with international standards on tax transparency and information exchange.
Vietnam is also developing a national action plan to implement recommendations from the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes.
What the EU Listing Means
The EU’s “non-cooperative” list is based on assessments tied to OECD standards. Jurisdictions placed on the list are typically encouraged to address identified gaps within defined timelines.
Importantly, this classification does not equate to sanctions. However, it can influence:
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Reputational perceptions in capital markets
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Due diligence requirements for European investors
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Tax compliance reporting obligations for multinational groups
Vietnam signaled readiness to work closely with the European Commission and EU member states to provide updated information on legal reforms and implementation progress.
Context: Vietnam’s Investment Position
Vietnam has positioned itself as one of Asia’s most dynamic manufacturing and investment destinations. The government has actively promoted regulatory transparency to support foreign direct investment inflows, particularly from Europe, Japan, South Korea, and the United States.
The OECD, founded more than six decades ago, comprises 38 member countries — largely high-income economies — and serves as a key forum for global economic policy coordination.
For European companies already in Vietnam, the immediate operational impact appears limited. The critical variable will be how quickly Hanoi can demonstrate compliance improvements and whether the EU revises its classification in subsequent reviews.
For now, the development underscores a broader reality: as Vietnam deepens integration into global capital markets, regulatory alignment with OECD standards is becoming increasingly central to its investment narrative.
Source: Vietnam Insider