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Vietnam’s Push for E-Invoice Adoption Driving Digital Transformation

The taxation sector is actively working towards the goal of having 70% of enterprises and business households transition to using e-invoices generated from cash registers by the end of this year. This initiative was launched on 15 December 2022. The promotion of e-invoices is a key task of the tax sector in its attempt to digitally transform businesses, financial agencies, and state departments.

As per the directives of the General Department of Taxation, tax departments have been urged to achieve specific targets for e-invoice adoption. These targets include reaching 30% by the end of the second quarter, 50% by the end of the third quarter, and 70% by the end of the year. In major cities such as Hanoi, Ho Chi Minh City, Hai Phong, and Quang Ninh, the requirement is a 100% adoption rate for dining and restaurant services.

By late May, a total of 18,963 businesses had completed the registration process to utilise e-invoices with tax codes generated from cash registers. According to the head of the Vietnam Academy of Finance’s Tax and Customs Department, expanding the use of e-invoices from cash registers plays a crucial role in enhancing the monitoring capabilities of tax authorities. This, in turn, leads to more efficient and equitable tax management by facilitating better oversight of the supply of goods and services offered by businesses.

Attention has been paid to solving obstacles related to policy, professional process, and the application of software in the scheme; as well as enhancing communication campaigns to raise taxpayers’ awareness of the benefits of using e-invoices generated from cash registers.

Ho Chi Minh City is among the three localities chosen for piloting the use of e-invoices. However, despite more than two months of implementation, the number of taxpayers who have successfully registered in the city has remained relatively low. As of 26 February of this year, the total number of registered taxpayers reached only 278.

Based on a preliminary survey, Ho Chi Minh City has identified 266 enterprises and 5,268 business households that fall within the scope of the scheme. These entities include trade centres, supermarkets, restaurants, hotels, and entertainment service providers. They have been identified as the primary targets for the implementation of the initiative.

Last year, the Minister of Finance said that e-invoices are crucial in creating a transparent and fair business environment, more streamlined administrative processes, and higher productivity. They are an integral part of Vietnam’s national strategy for digitalisation. The Ministry’s e-invoice project significantly improves the level of transparency and effectiveness while helping cut costs and improve the business environment.

Promoting the use of e-invoices is part of the government’s plan to build a digital society and economy. In 2020, Vietnam kicked off a national digital transformation programme, under which the country would renovate the management and administration activities of the government, the production and business activities of enterprises, and the overall way of living and working. It is working to develop a safe, humane, and wide digital environment. The national digital transformation programme has the dual purpose of both developing the digital government and economy and establishing Vietnamese digital businesses with a global capacity.


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