Building Three Strategic Pillars for Modern Tax Management

As digital transformation reshapes the economy, Vietnam’s tax sector is driving the modernization of tax management with the goal of “digital tax - digital management - digital trust.” The three strategic pillars of data, cross-sector connectivity, and a service-oriented mindset form the foundation of a transparent, efficient, and taxpayer-centered digital tax ecosystem.

Tax authority and MISA JSC partner to provide tax-related support for the business community, including individuals and household businesses

Data as core asset and foundation of modern tax management

In line with the Tax System Reform Strategy through 2030 and the National Digital Transformation Resolution, the tax sector sees modernization as essential for improving revenue collection efficiency, lowering compliance costs for taxpayers, and enhancing economic transparency. Central to this effort is the understanding that data is a core asset, a “source of energy” that shapes governance quality and decision-making within the tax system.

To support this, the Department of Taxation has built a multi-layered data ecosystem that integrates information on tax declarations, payments, and refunds, along with electronic invoices, with data from other ministries and agencies, including Customs, State Treasury, banks, social insurance, and the Ministry of Public Security. A key milestone is the nationwide rollout of electronic invoicing, enabling the tax sector to shift from managing isolated documents to tracking transactional data streams in real time.

From this extensive data repository, the tax sector uses Big Data and artificial intelligence to analyze risks, detect fraud, and streamline accurate tax refunds. The system can identify unusual business activities, such as false invoicing, circular invoice trading, or discrepancies between invoices and VAT returns, preventing fraudulent refund claims. Moving from “document management” to “data management” allows the tax sector to oversee compliance proactively while reducing the manual declaration and reconciliation workload for businesses.

Cross-sector connectivity and service-oriented mindset

If data is the resource, then APIs, the application programming interfaces, are the pipelines that deliver it securely and efficiently. The tax sector is developing a network of APIs for cross-sector connectivity, creating an integrated management system across government agencies. This model allows two-way data sharing between the tax sector and ministries such as Finance, Industry and Trade, the Securities Commission, banks, and the Ministry of Public Security, establishing the foundation for a “digital tax government.”

Key API connections, including exchange of tax declarations, financial reports, tax refund and exemption decisions, registration data, and e-commerce information, are fully automated. This digital integration minimizes manual intervention, shortens processing times, and ensures transparency while strengthening oversight and data reconciliation between agencies.

Alongside data infrastructure and connectivity, the tax sector is transforming its service mindset, placing taxpayers at the center of management. A Compliance Relationship Management (CRM) system has been implemented to assess risk based on taxpayer behavior, segment taxpayers, and apply appropriate support measures.

New services such as automated personal income tax refunds have been introduced, cutting processing times to just one to three business days for low-risk filings. In addition, a 24/7 early warning system, powered by electronic invoice data, can detect unusual transactions and automatically notify businesses for timely adjustment. The tax sector is also exploring pre-filled tax declarations for small and micro businesses to ease reporting burdens and promote voluntary compliance.

By 2030, the tax sector aims to establish a Big Data Center integrating all invoice, financial report, and cross-sector data, applying AI and machine learning to analyze transaction chains, assign risk scores, and support inspection and audit decisions. Concurrently, legal frameworks for secure data sharing, information safety, and personal data protection will be finalized to maintain taxpayer trust.

The tax sector is also prioritizing the development of digital talent, training staff not only in technology skills but also in data analytics, risk management, and CRM-oriented taxpayer support. This human resource strategy is viewed as essential for sustaining the modernization process.

By Hien Kien, Vietnam Business Forum