Vietnam – Korea: Strengthening Cooperation To Redesign Modern Tax Administration

On March 27, 2026, at the headquarters of the General Department of Taxation of Vietnam, a mid-term review workshop was held for the project on business process reengineering in tax administration and IT system architecture design, funded by the Korea International Cooperation Agency (KOICA).

The event was attended by leaders of the General Department of Taxation, representatives of KOICA Vietnam, international experts, and relevant departments.

Strategic cooperation for modern tax administration

In his opening remarks, Mr. Mai Son, Deputy Director General of Taxation, expressed appreciation to KOICA and international experts for their strong support throughout the project. He emphasized that the project represents a milestone in the deepening cooperation between the tax authorities of Vietnam and Korea, extending beyond technical exchange toward a long-term, sustainable partnership in tax administration and digital transformation.

“The strategic value of this project lies not only in technical support but also in shaping a modern tax administration mindset for Vietnam in the new phase. It enables Vietnam’s tax sector to access international experience, especially advanced models from Korea, thereby shortening the research and implementation process,” he highlighted.

Key initial achievements

The Deputy Director General identified three key strengths of the project:

• Correct identification of core challenges: the gap between policy, operations, and digital transformation—one of the major bottlenecks in modernizing tax administration
• Alignment with international practices, particularly recommendations from organizations such as the OECD and the World Bank
• Modern IT architecture proposals, with clear system layering, consistent with models applied in advanced countries

Areas for further clarification

Despite positive results, several areas require further discussion and refinement, including:

• Defining the future tax administration model (by taxpayer segment vs. behavior, and central-local decentralization)
• Strengthening the role of risk management and compliance management
• Identifying priority processes for implementation, digitization, or elimination

Additionally, the consulting team was requested to clarify:

• Data governance frameworks (ownership, responsibilities, and usage rights)
• Performance evaluation methods using KPI systems
• Development of capability maps, system structures, and integration mechanisms

KOICA’s commitment and international collaboration

At the workshop, Ms. Lee Yookyung, Deputy Country Director of KOICA Vietnam, expressed appreciation for the close cooperation from the Vietnamese tax authority. She noted that the project was developed based on Vietnam’s practical needs, with participation from reputable Korean institutions such as the National Tax Service of Korea and KMAC experts.

She also highlighted that while Vietnam’s tax sector has made significant progress in digital transformation, some processes remain non-automated and systems are still fragmented. Therefore, the project focuses on comprehensive solutions to build a modern, integrated tax administration system.

KOICA reaffirmed its commitment to continue supporting Vietnam, positioning the project as a foundation for enhanced bilateral cooperation in tax administration.

Mid-term report and next steps

During the workshop, Ms. Kang Eungyung, Head of the Expert Team, presented the mid-term report outlining directions for business process redesign and IT system architecture. The presentation sparked active discussions among participating departments, helping refine proposals and implementation strategies.

Toward a modern, transparent, and efficient tax system

The workshop marks a critical milestone in reviewing progress and fostering open dialogue between Vietnam’s tax authority and international partners. It aims to finalize advisory solutions that support the development of a modern, transparent, and efficient tax administration system.

The General Department of Taxation expressed its expectation for continued cooperation and support from KOICA and the Korean tax authority across broader areas of tax administration in the future.