Vietnam to Ease Personal Income Tax Burden with Expanded Deductions

The Ministry of Finance has recently released the draft for public feedback, with the decree expected to take effect from July 1. The draft specifies 21 categories of tax-exempt income, adding five, aimed at encouraging individuals working in priority sectors aligned with national development strategies. The Indonesian Ministry of Finance announced that this policy applies to workers with a monthly gross income not exceeding 10 million IDR (about 598 USD). Labourers’ personal income tax obligations will be shouldered by the state. Under the amended Law on Personnal Income Tax, the personal deduction will rise to 15.5 million VND (590 USD) per month from 11 million VND at present. Taxpayers are also entitled to mandatory insurance deductions and contributions to charity and humanitarian funds. By safeguarding key production areas, expanding deep processing, promoting green production and improving climate resilience, Vietnam's agro-forestry-fishery sector will be better positioned to sustain export growth and further expand its global market share. The State Bank of Vietnam set the daily reference exchange rate at 25,202 VND/USD on July 6, down 1 VND from the last working day of the previous week. Israel views Vietnam as a highly promising market of more than 100 million people and an increasingly important global manufacturing hub. Both countries identified artificial intelligence (AI), cybersecurity, agricultural technology, health care and innovation as key areas for future collaboration. Vietnamese electric vehicle maker VinFast on July 5 unveiled the VF 2, a compact urban electric car priced at 188 million VND (7,200 USD), including the battery, as part of its strategy to make car ownership more accessible for Vietnamese consumers. Hong Kong remained Vietnam's fifth-largest foreign investor in 2025. Bilateral trade also recorded remarkable growth of more than 70% during the year, with Vietnam's exports to Hong Kong surging by over 90%, making Vietnam the third-largest exporter to the market after mainland China and Taiwan (China). The strongest first-half industrial growth since 2019 not only underscores the sector's solid recovery but also provides a firm foundation for Vietnam to sustain robust economic growth throughout 2026. With manufacturing continuing to lead, supported by improving demand, employment and production capacity, industry is expected to remain a key pillar of economic expansion. The country's top 10 brands were collectively valued at 24.5 billion USD, up more than 12% from a year earlier, while the rankings remained unchanged from 2025. The remaining months of the year will be devoted to accelerating implementation rather than lowering expectations, affirmed Chairman of the Hanoi People's Committee Vu Dai Thang. The domestic market remained generally stable during the period, but smuggling, commercial fraud and counterfeits remained complex across many sectors and localities. Resolution No. 36-NQ/TW on Vietnam’s Sustainable Marine Economic Development Strategy until 2030, with a vision to 2045, calls for a green, modern and innovation-driven marine economy built on science and technology. Within this framework, offshore wind has been identified as a strategic sector capable of creating new growth momentum. The planned restoration of 91 weekly return flights by Vietnam Airlines and Vietjet Air is expected to meet growing travel demand from residents and visitors while enhancing Da Lat city's air connectivity with the country's major economic and tourism centres. The article also highlighted the elevation of Vietnam–EU relations to a comprehensive strategic partnership in early 2026, arguing that the upgraded framework would provide fresh momentum for cooperation in trade, investment, digital transformation, the green transition, energy, climate action and supply chain resilience. Vietnam, as the 2026 CPTPP Chair, hosted the online CPTPP ministerial meeting and the 10th meeting of the CPTPP Commission on June 26, reported the Ministry of Industry and Trade. Minister of Migration and Asylum Athanasios Plevris stressed that Greece is keen to strengthen labour ties with ASEAN countries to address labour shortages. In the first six months, total retail sales and consumer service revenue amounted to an estimated 3,889.5 trillion VND, up 12.9% year-on-year. After excluding price factors, real growth stood at 7.3%, reflecting a solid recovery in domestic purchasing power and consumer demand. Including additional registered capital, total capital flowing into the market reached nearly 3.1 quadrillion VND, marking an 11.3% year-on-year increase. Overall, total trade turnover in the first six months of 2026 stood at 549.69 billion USD, up 27.1% compared with the same period last year, of which exports rose 21% and imports increased 33.4%. As of June 30, total registered FDI, including newly registered capital, additional capital for existing projects and foreign investors' capital contributions and share purchases, rose 61% year-on-year to 34.65 billion USD. Releasing the second-quarter and first-half socio-economic report, NSO Director General Nguyen Thi Huong said June’s CPI was still up 3.21% from December 2025 and 4.69% higher than a year earlier. The agreement marks a meaningful evolution in the relationship between the two organisations: from project-level collaboration to a long-term strategic framework aimed at bringing international standards to bear on the planning, development, and operation of Sun Group's aviation infrastructure portfolio. Copyright, VietnamPlus, Vietnam News Agency (VNA) Editor-in-chief, Mr. Tran Tien Duan.