HÀ NỘI — Việt Nam has welcomed the European Union’s decision to remove it from the bloc’s list of non-cooperative jurisdictions for tax purposes, saying it stands ready to keep working with international partners to promote tax transparency and a fair, sustainable business environment.

Responding to reporters on October 10 on Việt Nam’s reaction to the move, Ministry of Foreign Affairs spokeswoman Phạm Thu Hằng said: “Việt Nam welcomes the European Union’s decision to remove Việt Nam from the list of non-cooperative jurisdictions for tax purposes.”

According to the spokeswoman, the decision recognises Việt Nam’s recent efforts to refine its legal and policy framework and improve enforcement in practice, aiming to build a favourable, transparent, and stable business and investment environment in line with international standards and practices. This, she said, helps to safeguard the lawful rights and interests of businesses and investors, promote international economic cooperation and raise the economy’s competitiveness.

“Việt Nam stands ready to continue exchanges and cooperation with international partners, including the EU, in a constructive, equal and mutually beneficial spirit, to promote tax transparency, improve the effectiveness of corporate governance and build a fair, favourable and sustainable international business environment,” she said.

The move was set out in conclusions adopted by the Council of the European Union at a meeting of the Economic and Financial Affairs Council in Luxembourg on October 9. The Council welcomed the compliance with all listing criteria of a number of jurisdictions that had been included in the list since 2017, resulting in their removal from it.

Rather than appearing on the revised blacklist, which now contains eight entries, Việt Nam is reflected in a separate annex setting out the state of cooperation with jurisdictions that have committed to implementing good tax governance standards.

Under the transparency criteria, Việt Nam is listed among the jurisdictions waiting for an in-depth review by the Global Forum on the exchange of information on request, alongside Montenegro and Panama.

On the prevention of base erosion and profit shifting, the Council noted that Việt Nam had committed to addressing the general recommendations on parts B(1) and B(2) of the country-by-country reporting terms of reference from the Inclusive Framework within a timeframe that would allow them to be reflected in the Action 13 peer review report in the autumn of 2027.

More broadly, the Council underlined the importance of promoting tax good governance standards, including on fair taxation and tax transparency, and of fighting tax fraud, evasion and avoidance. It also appreciated the continued cooperation on tax matters between its Code of Conduct Group on Business Taxation and most jurisdictions around the world.

The EU list, first drawn up in 2017, is updated twice a year as part of the bloc’s efforts to encourage better tax governance worldwide. Việt Nam’s removal is expected to strengthen confidence among European investors and support the two sides’ deepening economic and trade ties. — VNS