Enterprises benefit directly
The policy of continuing to reduce VAT by 2% according to Decree No. 174/2025/ND-CP is expected to pump hundreds of thousands of billions of VND more in purchasing power into the economy. Thereby creating a strong push for domestic retail enterprises to improve competitiveness. Promoting exports and investment contributes to sustainable development of our country's economy and stronger integration into the global market.
Sharing with Lao Dong, a representative of Masan Group said that consumers tend to spend more when items become cheaper, especially in the context of increasing prices of consumer goods. Access to products and services has become easier, encouraging all social classes to participate in consumer activities more strongly.
According to a representative of Masan Group, domestic consumer demand is expected to maintain growth momentum in the coming time when consumer sentiment gradually recovers, in parallel with high economic growth. Currently, the Government is determined to make great efforts and open up resources to achieve the growth target of 8% or more this year. Thereby creating conditions for people's income and spending to improve, attracting consumer demand and promoting the explosion of the retail market. This is a strategic step of the Government to create a healthy business environment, promote economic development and improve people's lives.
The VAT reduction will help many businesses' retail operations become more active and vibrant. In particular, making the selling price on modern channels close to traditional markets, accelerating the shift in shopping behavior, a double boost for businesses in both customer traffic and order value. For example, Masan MEATLife will benefit from consumers' willingness to spend more on safe, well-known food. When lower taxes reduce prices, Masan MEATLife's "From farm to table" cool meat products are even more attractive compared to hot meat sold on the market. Thereby strengthening profit margins and increasing output for businesses" - this person said.
stimulating domestic consumption, creating momentum for economic growth
For the macro, the VAT reduction policy will create a positive shift in the market, stimulate domestic consumption and promote stronger production and service development. When people consume more, manufacturing and service businesses will have the opportunity to increase revenue and expand their scale of operations.
According to Associate Professor, Dr. Nguyen Thuong Lang, reducing VAT will help businesses reduce input costs, thereby reducing product costs, improving domestic and foreign competitiveness. Enterprises will be able to expand production, improve technology, and better meet market demand. From there, production and service activities will develop more strongly, creating many added values contributing to promoting economic growth.
Continuing to reduce VAT will create a more favorable business environment, encourage domestic and foreign investors to expand the scale of production activities while creating many job opportunities, improving productivity and overall economic efficiency. Although reducing VAT may temporarily reduce budget revenue, through increased consumption and production activities, the State budget will recover and even grow in the long term due to vibrant economic activities.
The policy of continuing to reduce VAT according to Decree No. 174/2025/ND-CP contributes to creating a strong driving force for economic growth by promoting consumption, improving the competitiveness of businesses, expanding export and investment activities. This helps the Vietnamese economy develop more sustainably, creating many job opportunities, increasing income and improving the quality of life for people Associate Professor, Dr. Nguyen Thuong Lang emphasized.
