International Journal of Research Studies in Education
Special Luminary Issue
2025
Volume 14 Issue 2
Available Online: 20 February 2025
Author/s:
Lam Dang, Xuan Hoa
Ho Chi Minh City University of Economics and Finance, Vietnam (hoaldx@uef.edu.vn)
Abstract:
This study evaluated the impact of the global minimum tax (GMT) on attracting foreign direct investment (FDI) in Vietnam. The author uses descriptive and comparative statistical methods to analyze and evaluate the impact of GMT on FDI attraction, including both positive and negative effects. On the positive side, GMT can create opportunities for the Vietnamese government to standardize the investment environment, transition to a circular economy and limit tax evasion by multinational enterprises, promote investment sources, increase Vietnam’s budget, and provide resources for infrastructure development and human resource training, instead of focusing only on reducing tax. This avoids the “race to the bottom” scenario, in which nations reduce tax rates to lure in investment. However, the disadvantages of GMT may include the possibility that businesses face loss of revenue, reducing their competitiveness, especially tax incentives, which may no longer be the most effective tool for countries, particularly Vietnam to attract FDI. From these analyses, the authors propose several recommendations that can be considered for implementation to improve policies related to GMT. In addition, the authors also want to lay the foundation for further research to evaluate the influence of GMT more comprehensively.
Keywords: corporate income tax, foreign direct investment, global minimum tax, multinational corporation
DOI: https://doi.org/10.5861/ijrse.2025.25810
Cite this article:
Lam Dang, X. H. (2025). The impacts of global minimum tax on Vietnam. International Journal of Research Studies in Education, 14(2), 91-99. https://doi.org/10.5861/ijrse.2025.25810