On April 22, 2026, the National Assembly discussed in the hall the draft Resolution of the National Assembly on a number of breakthrough mechanisms and policies for the development of Vietnamese culture. Minister of Culture, Sports and Tourism Lam Thi Phuong Thanh said that the ministry has closely coordinated with relevant ministries, sectors and agencies of the National Assembly to build and complete the Resolution Project Dossier. The draft Resolution proposes 10 major policies, reflecting the strong and comprehensive changes from management to investment in the cultural field.
Meaning of the 5% Value Added Tax figure
Among the 10 major policies of the draft National Assembly Resolution on a number of breakthrough mechanisms and policies for Vietnamese cultural development, there is a proposal to apply a 5% value-added tax rate to film production, film distribution, film dissemination, exhibitions, physical education, sports, performing arts...
Reviewing the context of November 2024, the National Assembly passed the amended Value Added Tax (VAT) Law. Cultural, exhibition, sports, performing arts, film production, import, distribution and screening activities are subject to a tax rate of 10%. This amended Law takes effect from July 1, 2025. This was once likened to a "shock" for filmmakers, because the specific characteristics of the Vietnamese film market are that the break-even is very difficult.
As of 2025, although many film projects have achieved high revenue, breaking box office records, they are still only a small number. Most Vietnamese films released in theaters still suffer from unsold tickets and losses. Director Nguyen Quang Dung commented: "Selling tickets is a very difficult problem to solve in the current film market. There is almost no completely correct answer. Predicting audience tastes is a big challenge for all of us filmmakers.
Furthermore, Vietnamese films always face great competition with foreign films right in "home theaters". If movie ticket prices increase sharply, audiences can choose the option of staying at home to watch... Netflix, the cost from online movie viewing platforms is much cheaper.
Therefore, in 2025, the 10% VAT rate has caused confusion among filmmakers. Chairman of the Vietnam Cinema Association, Assoc. Prof. Dr. Do Lenh Hung Tu shared that increasing the tax from 5% to 10% is a challenge and burden for filmmakers. According to Mr. Hung Tu, we should wait 5-10 more years, when cinema becomes a real industry, then we can earn income from higher tax rates.
The draft Resolution of the National Assembly on cultural development of Vietnam proposing to apply a 5% value-added tax rate will be a major turning point, with many meanings for filmmakers and business units investing in the field of culture and art, when they no longer have to "carry" the 10% VAT rate.
In the past 2 years, Vietnamese cinema has made strong changes with many historical projects, promoting culture and the image of the country. These projects are not only expected to create revenue boosts but also to be a channel to spread national beauty, enhance patriotism and national pride. Promoting the national image to the world is also the goal of cinema and the cultural industry, according to Resolution 80 NQ/TW.
The draft on the 5% VAT policy is likened to a step concretizing Resolution 80, in which the State has played the role of "investment", "management" and created a foundation and mechanism to promote cultural development.
National investment strategy for culture
In addition to the 5% VAT policy, the draft Resolution of the National Assembly on Vietnamese cultural development also shows "revolutions" in investment in culture. Accordingly, the State ensures that cultural spending annually accounts for at least 2% of total state budget expenditure, and at the same time encourages the mobilization of social resources for cultural development. Establishment of the Culture and Arts Fund at the central level and in some localities, operating under the public-private partnership model.
Preferential policies and talent development in the field of culture and sports include increasing preferential allowances, training regimes for artisans and artists, and a budget mechanism for retraining to change careers when artists reach retirement age.
