In Vietnam’s digital economy era, data transparency and Artificial Intelligence (AI) have become two pivotal factors empowering tax authorities to enhance control efficiency. Simultaneously, they open doors to sustainable development opportunities for Small and Medium-sized Enterprises (SMEs). By fully leveraging e-invoices, online data repositories, and automated analysis tools, SMEs can not only mitigate compliance risks but also access tax incentives earlier, boosting their credibility with partners and investors.
This article delves into key aspects, supported by actual data and references to new regulations for added persuasiveness.
98% of all enterprises in Vietnam are SMEs (approximately 784,000 businesses) – according to 2023 General Statistics Office data.
SMEs contribute 41% of GDP, 30% of total social investment capital, and create jobs for 60% of the nationwide workforce.
However, SMEs’ management capacity, technology infrastructure, and financial resources remain limited compared to large enterprises.
Financial and Tax Information Transparency:
Most SMEs still declare manually or use paper invoices, which easily leads to errors and risks during inspections.
Low Technology Adoption:
Only about 45% of SMEs use e-invoices; 30% apply automated management and accounting software.
Declaration and reporting processes are lengthy and labor-intensive.
Risk of Violating New Regulations:
The amended Tax Administration Law (2024) requires “Comprehensive Electronic Tax Declaration” and “Real-time Transparency.”
Decree 123/2020/ND-CP (updated 2024) categorizes risks, imposing heavier penalties for failure to provide data.
Administrative Penalties: From January 2024 to April 2025, the Ho Chi Minh City Tax Department penalized over 1,200 SMEs, with total fines amounting to approximately VND 12 billion.
Missed Tax Incentives: Resolution 198/2025/QH15 (effective March 2025) offers incentives for innovative enterprises; unclear declarations will not be approved.
Decreased Credibility with Partners: Many investment funds and banks only provide capital support if SMEs have transparent reporting systems. According to VCCI (2024), 65% of FDI investors prioritize tax records that have been consistently clear for two years.
Complete Information: Valid e-invoices, bank payment vouchers, and duly regulated receipts.
Timeliness: Submitting electronic declarations on time and retaining data for a minimum of 5 years (amended Tax Administration Law 2024).
Automated Reconciliation Capability: Standardized data (XML, CSV, JSON) enables tax authorities to connect with Big Data, reducing fraud.
Reduced Inspection Risks: According to the Hanoi Tax Department (2024), tax error rates decreased by 22% in enterprises fully implementing e-invoices. SMEs can reduce the risk of unexpected inspections by 50–70%.
Increased Access to Tax Incentives: The average VAT refund rate for SMEs increased from 8% (2023) to 12% (2024) due to accurate and transparent declarations.
Enhanced Credibility with Partners and Investors: According to VCCI (2024), 65% of FDI investment funds require financial and tax data transparency for at least two consecutive years.
E-invoice Implementation: According to Circular 78/2021/TT-BTC and Decree 123/2020/ND-CP (amended 2024), from July 1, 2025, SMEs are mandated to use e-invoices with tax authority codes.
Automated Storage and Backup: Invest in cloud storage services (Cost: VND 500,000–1,000,000/month for 500 GB). This helps prevent loss, damage, and ensures data is readily available for inspections.
Accounting and Tax Staff Training: According to the General Department of Taxation (2024), 70% of SME errors originate from staff being unfamiliar with new regulations. SMEs should organize two training sessions per year on tax policies, e-invoices, and document retention.
Data transparency helps shorten tax declaration and financial reporting times by 50–70%.
Each SME saves VND 30–40 million/year in personnel, printing, and paper storage costs.
Allows tax authorities to perform automated reconciliation, reducing on-site inspection probability by 80%, avoiding business disruptions.
Clear declarations enable SMEs to qualify for incentives under Resolution 198/2025/QH15 (2-year CIT exemption, 50% tax reduction for the next 4 years for innovative enterprises).
Preferential capital support programs (State Bank, 0% interest loan packages for tech companies) require financial and tax transparency.
FDI partners, venture capital (VC) funds evaluate ESG factors – where financial and tax transparency is a significant advantage.
Transparent data helps management accurately grasp financial situations, plan expansion, and invest in R&D based on actual figures.
The ability to forecast cash flow for VAT and CIT payments allows proactive accumulation, reducing tax arrears rates to 2–3%.
The National Data Center officially commences operations on August 19, 2025, allowing data sharing and integration among tax, customs, banking, and social insurance agencies.
From 2026, 100% of tax and customs records will be interconnected via the “National Single Window” mechanism.
SMEs that have built a foundation of transparent data and early analysis tools will proactively connect, minimizing risks when implementing regulations.
Accounting-tax software recognized by the General Department of Taxation: MISA, Fast Accounting, Bravo, LinkQ.
Big Data, AI solutions: FPT, VNPT, Viettel or specialized Fintech – Taxtech companies.
Verify the partner’s security certifications (ISO/IEC 27001) to ensure personal data safety (according to Decree 13/2023/ND-CP).
Periodically organize internal workshops and seminars on new tax policies (invite experts from the Tax Department, Vietnam Association of Accountants and Auditors).
Develop SOPs (Standard Operating Procedures) for tax data storage, analysis, and reporting:
Procedure for entering invoices into the system.
Procedure for checking and cross-referencing invoices and bank vouchers.
Procedure for submitting electronic declarations on time.
Encourage accounting and finance staff to participate in online courses on basic data processing and Big Data to enhance digital capabilities.
Key Performance Indicators (KPIs) to monitor:
Percentage of e-invoices out of total invoices (target: ≥ 100% before July 2025).
Annual tax declaration error rate (target: ≤ 2% in the first year of transformation).
Number of days to complete tax reports (savings ≥ 50% compared to before).
Administrative and personnel cost savings (≥ 20–25% of accounting budget).
Periodic Progress Reports:
Every six months, management and the accounting-tax department should meet to evaluate KPIs, draw lessons, and make timely adjustments.
Data transparency not only helps SMEs mitigate risks and optimize costs but also opens up opportunities:
Rapid Access to Tax Incentives: Resolution 198/2025/QH15 offers significant incentives for innovative enterprises.
Enhanced Credibility with Partners and Investors: Transparent financial and tax records are crucial criteria when assessing loans and investments.
Leading the Tax Digital Transformation: The National Data Center (August 19, 2025) requires real-time data; well-prepared SMEs will not be caught off guard.
The journey of data transparency and AI application demands determination, investment in technology, and human resources. However, by starting early, SMEs will rapidly bridge the gap with larger enterprises, strengthen their competitiveness, and be ready for sustainable development in the digital era. Start today to realize the vision of “Transparency – Digitization – Compliance” and achieve long-term success.
Dat Huynh
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