On September 21, 2025, two major government proposals emerged in Vietnam, each sparking public debate and raising questions about the future of small business taxation and railway infrastructure management. The Ministry of Finance’s plan to revamp tax policy for small businesses and the Ministry of Construction’s push for clearer rules on railway operations both reflect a country in transition, grappling with the challenges of economic modernization and regulatory clarity.
The Ministry of Finance’s proposal centers around a new threshold for corporate income tax (CIT) obligations. Beginning January 1, 2026, individuals and households engaged in production and business activities with annual revenue of 200 million VND or less would be exempt from CIT. Those earning above this threshold would be required to pay, in alignment with the revised Law on Value Added Tax, the Law on Corporate Income Tax, and the broader policy to eliminate lump-sum tax regimes. According to Thanh Niên, this move is intended to bring greater consistency to Vietnam’s tax system and to streamline tax collection for small-scale entrepreneurs.
But while the proposal might appear straightforward, it has quickly become a lightning rod for criticism. Many citizens argue that the 200 million VND annual revenue threshold—a figure that translates to just over 540,000 VND per day—does not reflect the realities of today’s economy. As a local vendor told Thanh Niên, “If it’s 500,000 VND, then even a sticky rice peddler or a sweet soup peddler would have to pay tax. Two hundred million is difficult for everyone. If you divide it, it’s only about a dozen million per month, just a few hundred thousand per day, and you already have to pay tax.”
To put this in perspective, 540,000 VND per day is roughly what a street food vendor might earn by selling 10 bowls of beef noodle soup or 15 to 20 servings of basic meals. That’s not accounting for the rising costs of ingredients, labor, and everyday living expenses. For many, the new threshold seems out of step with the economic pressures facing Vietnam’s small business owners.
The draft law doesn’t stop at income thresholds. It proposes dividing individual and household businesses into four groups based on annual revenue. Group 1, with revenue under 200 million VND, would enjoy tax exemption. Group 2 includes those earning from 200 million to less than 1 billion VND. Group 3 covers those with 1 to 3 billion VND in production or 1 to 10 billion VND in services, while Group 4 is for businesses exceeding 10 billion VND. Notably, Groups 3 and 4 would be required to use electronic invoices and adopt more rigorous accounting standards—a step toward greater transparency but also a potential burden for some.
Many business owners and citizens are worried that the proposal doesn’t sufficiently account for the rising costs of doing business. As raw material prices, wages, and living expenses continue to climb, a 200 million VND annual revenue cap for tax exemption seems increasingly inadequate. Critics argue that the new rules could force even the smallest operators—those barely scraping by—into the tax net, threatening their livelihoods and potentially discouraging entrepreneurship at the grassroots level.
Meanwhile, another significant regulatory proposal surfaced from the Ministry of Construction. According to VTV, the ministry introduced a draft decree aimed at clarifying the rules for commissioning and suspending railway lines and stations—a move prompted by the lack of detailed legal guidance in this sector. The proposal comes at a time when Vietnam is investing heavily in transportation infrastructure, seeking to modernize its rail network while ensuring safety and efficiency.
The draft decree lays out stringent conditions for putting railway lines and stations into operation. Before a line or station can be commissioned, it must comply fully with all construction laws, undergo safety testing and trial operations, and receive a system safety certification as stipulated in Article 52 Clause 6 of the Law on Railways. Furthermore, the organization responsible for managing railway infrastructure must prepare and secure approval for a comprehensive management and operation plan.
Authority to approve the commissioning of railway lines and stations is clearly delineated: the Minister of Construction holds the reins for national railways, while provincial People’s Committees decide for local lines within their jurisdiction. For specialized railways, the owner makes the call. The required documentation for commissioning includes a formal proposal, an operational plan with organizational and staffing details, layout maps, legal project documents, acceptance reports, inspection results, and—where relevant—certificates for handling hazardous materials.
Equally detailed are the criteria and procedures for suspending railway operations. A line or station may be taken out of service if it is no longer included in railway planning, if there is no longer demand for its use, if facilities have deteriorated to the point of endangering safety, or if it is replaced by new infrastructure as approved by competent authorities. The suspension process also requires a formal proposal and supporting documents explaining the rationale and conditions for ceasing operations. Decision-making authority mirrors that for commissioning: the Minister of Construction for national lines, provincial leaders for local lines, and owners for specialized railways.
The Ministry of Construction’s proposal is designed to bring order and predictability to a sector that has often been plagued by ambiguity. By setting out clear requirements for both launching and halting railway services, the ministry aims to enhance safety, protect public and environmental welfare, and ensure that the nation’s rail infrastructure keeps pace with changing needs.
Both proposals—one targeting the small business tax regime, the other the governance of railway infrastructure—underscore the Vietnamese government’s drive to modernize policy frameworks in response to economic and social realities. Yet, as the spirited public response to the tax proposal demonstrates, change is rarely simple. Policymakers must walk a fine line between efficiency and fairness, between regulatory clarity and the lived experiences of ordinary citizens and entrepreneurs.
As Vietnam continues to evolve, the debates surrounding these proposals offer a window into the country’s balancing act: striving for growth and modernization while ensuring that reforms remain grounded in the everyday realities of its people.
