JICA tax project lays foundation for Vietnam's tax sector modernisation

JICA tax project lays foundation for Vietnam's tax sector modernisation

A Vietnam-Japan cooperation project has helped strengthen tax administration through international best practices, supporting tax reform efforts and enhancing the efficiency, transparency and modernisation of Vietnam’s tax system.

On June 18, the Tax Department, in coordination with the Japan International Cooperation Agency (JICA), held the seventh joint coordinating committee meeting as part of the ‘Enhancing Tax Administration Efficiency through International Experience’ initiative.

Representatives of the Tax Department and JICA Vietnam Office at the conference

Speaking at the meeting, deputy director general of the Tax Department Le Long spoke of how the cooperation between Vietnam and Japan has continued to develop in a deep, substantive, and effective manner across various fields.

Cooperation between the tax authorities of the two countries has stood out as a highlight, reflecting mutual trust, knowledge sharing and support aimed at improving tax administration efficiency and meeting each country’s socioeconomic development requirements.

"This project has gone beyond organising training activities and workshops," said Long. "It has established a mechanism for regular cooperation between Japanese experts and professional units within the Tax Department. Through this mechanism, international experiences and innovative approaches to modern tax administration have been studied and referenced in refining Vietnam's tax mechanisms, policies, and operational procedures."

Launched in 2020, the ‘Enhancing Tax Administration Efficiency through International Experience’ scheme has assisted Vietnam’s tax sector in implementing the Tax System Reform Strategy through 2030, with the goal of building a modern, professional, transparent, effective and efficient tax administration system.

Although the project has faced many difficulties, particularly the impacts of the COVID-19 pandemic and inclusive organisational restructuring within the tax sector, it was maintained continuously and achieved positive outcomes thanks to close coordination among all parties involved.

Beyond its technical achievements, the undertaking has also served as an important bridge in strengthening mutual understanding, trust and cooperation between the tax authorities of the two countries.

The experiences shared, relationships established and lessons accumulated throughout the implementation process will continue to provide an important foundation for future cooperation activities.

Ikeda Hiroyuki, deputy chief representative of the JICA Vietnam Office, said, "The project has facilitated the sharing of international experience and best practices in risk management, helping improve taxpayer analysis and selection for audit and inspection, refine risk-based management approaches, and enhance the efficiency of tax authority resource utilisation."

"On taxpayer management, it has supported research on issues related to the administration of small and medium-sized enterprises, household businesses, and individual business operators, while sharing international experience in digital technologies, data management, and taxation of the digital economy," he said.

"In tax debt management, training activities, experience-sharing activities, and study visits to Japan provided valuable lessons that can be researched and adapted to Vietnam's practical conditions," he added.

At the meeting, participants exchanged views and conducted a comprehensive assessment of the project’s implementation results during the 2020-2026 period, shared lessons learned and discussed future directions for cooperation.

Le Long spoke of his appreciation for the spirit of close cooperation, responsibility, and commitment demonstrated by JICA experts throughout the project's implementation. He expressed gratitude to the Japanese government, JICA, Japan's National Tax Agency, Japan's National Tax College, the Embassy of Japan in Vietnam, and all Japanese experts for their practical support.

"The project has delivered immediate benefits while also laying a foundation for the long-term development of the tax sector in the years ahead," Long said.

VIR