Vietnam is planning to establish a comprehensive tax framework for cryptocurrency trading. According to a recent draft notice published by the Ministry of Finance, there is a plan to impose a 0.1% transaction tax on individual investors. Since Vietnam has not had an official tax system for cryptocurrency transactions until now, this move represents a significant turning point.

Looking at the proposal, it is quite detailed. Individuals trading digital assets through authorized platforms will be taxed at 0.1%. This rate is the same as the current stock trading tax. On the other hand, Vietnamese companies that profit from cryptocurrency trading will be subject to a 20% corporate tax. If foreign companies operate on Vietnamese platforms, instead of a higher corporate tax, a 0.1% transaction tax will be applied.

Interestingly, this framework excludes digital assets from the scope of value-added tax. In other words, digital assets are treated as financial products and are not considered taxable goods or services. Since other countries like Thailand and Indonesia are adopting similar approaches, it seems to be part of an international trend.

However, there are still many vague areas in this proposal. The tax treatment of cryptocurrency mining rewards and staking rewards, as well as how to tax transfers between wallets outside authorized platforms, are not clearly specified. Additionally, the requirement for investors to pay taxes even on losses might be harsh.

Vietnam has launched a five-year digital asset regulatory pilot program starting in September 2025. Under this program, all cryptocurrency transactions are required to be conducted in Vietnamese dong. It appears that the current tax proposal is aligned with this pilot program.

Vietnam’s cryptocurrency market has been growing rapidly in recent years, ranking among the top 20 in the world according to multiple industry surveys. Many investors are focusing on digital assets as alternatives to banks and remittance services. The proposed tax framework reflects Vietnam’s intention to generate revenue from this growing market while establishing regulatory clarity.

However, whether it will function effectively in practice remains to be seen. Preventing outflows to unlicensed platforms and establishing a robust enforcement mechanism will be key. The future response of Vietnam’s cryptocurrency market to these developments is something to watch closely.