On March 12, 2025, the General Department of Taxation issued Notice No. 41/TB-CT concerning the temporary suspension of electronic tax systems, which is part of efforts to upgrade and restructure tax authorities. This restructuring aligns with plans set by the Government and the Ministry of Finance to optimize the state administrative apparatus post-restructuring.
The General Department of Taxation is currently implementing a new organizational model comprising 20 regional tax sub-departments and 350 district-level tax teams, replacing the previous structure of 63 tax departments and affiliated tax sub-departments.
Prior to the notice, Director General Mai Xuan Thanh emphasized the need for careful management of data conversion and tax application processes to guarantee absolute safety. He assured stakeholders of his commitment to ensuring operational continuity after the upgrade, particularly for citizens and businesses using electronic tax services.
Meanwhile, on March 17, 2025, Long An province announced its ambition for double-digit economic growth, categorically positioning itself as a favorable investment destination. This year, Long An is focusing on several key projects aimed at enhancing its economic infrastructure and attracting more investments.
During this period, significant developments were highlighted, including remarks from Harada Shohei, General Director of Kyodo Shojitz Co., Ltd. He mentioned the initial difficulties faced by his company due to regulatory challenges but noted successful adaptation strategies through collaboration with local experts. "We understood the importance of flexibility and have strengthened market research capabilities," he stated, underlining the company's successful entry and operations within Long An.
Long An is poised to host more than 20,000 domestic enterprises with almost 390,000 billion VND registered capital and close to 1,400 foreign direct investment (FDI) projects amounting to over 12,745 million USD. This steady growth, according to provincial leaders, stems from favorable investment conditions, including its strategic location connecting Ho Chi Minh City with the Mekong Delta.
Mr. Lee JunGoo, CEO of JW Euvipharm, cited his company’s significant investment, which exceeded 1,000 billion VND by early 2025. He shared how, after rebranding the company, they reached significant profitability by 2024 due to strategic local operations. "The support from local leaders has played a significant role in our investment decisions," he added.
Long An’s local government is actively implementing its provincial plan for 2021-2030, geared toward sustainable growth and proving its market competence to both domestic and foreign investors. This includes urban and industrial projects like the Eco Park urban complex and LNG power plants, which are slated to amplify economic activities.
Conversely, on the national legislative front, the Politburo has taken steps toward the reduction of administrative tiers. On February 14, 2025, they discussed plans to abolish the district level and initiate discussions on provincial mergers and restructuring local units. This strategy reinforces the government’s focus on efficient governance, as indicated by subsequent conclusions on February 28, 2025, emphasizing the need for systemic organizational reform.
The Ministry of Home Affairs has since been tasked with advising and implementing significant changes by drafting necessary legislative amendments aimed at local governance organization before May 15, 2025. Minister Pham Thi Thanh Tra indicated intentions to streamline local governance through effective feedback from potential mergers to create more efficient administrative units.
A national conference is expected to take place by mid-April 2025, providing a platform for discussing these administrative adjustments. Currently, Vietnam has about 10,035 communes, with the goal to consolidate to approximately 2,000, making each commune resemble smaller administrative divisions, which has been seen as beneficial for governance.
Long An’s forward-thinking strategies and the recent structural governance plans reflect the common theme of enhancing operational efficiency and economic growth, setting the stage for significant developments across both local and national levels.
To summarize, as the General Department of Taxation resumes operations and the province of Long An gears up for impressive economic growth and investment strategies, there is also substantial movement at the national level toward administrative efficiency. The combined efforts signal not only proactive governance but also ambition to solidify Vietnam as both a competitive and engaging environment for domestic and foreign investors alike.