Vietnam Tax Reforms Trigger Exit Barriers for Businessholders

Vietnam's tax reforms include measures to clean old tax records and close inactive businesses, but some individuals face exit suspension due to unresolved tax debts or registration issues. The government claims these actions are critical for economic development.

Businessman Nguyen Minh Hieu was barred from leaving Vietnam after discovering an exit suspension order linked to past tax debts through the government's tax app. This incident highlights concerns about personal information misuse in business registration processes.

The Tax Department reports over 600,000 businesses ceased operations without proper tax registration closure, indicating significant challenges in modernizing tax administration and digitizing records as part of reform efforts.