During a National Assembly (NA) session on December 9, legislators debated the government’s proposal to allow full deduction of input VAT for goods and services not subject to output VAT. The measure is intended to ease persistent cost burdens on sectors such as animal feed and other VAT-exempt products, where non-deductible input taxes have long inflated production expenses and weakened domestic competitiveness.

However, when comparing this proposal with the case of fertilisers – previously suggested being taxed at a 5 per cent VAT rate – NA deputy Tran Van Lam of Bac Ninh noted a policy inconsistency. He stressed that both animal feed and fertilisers are essential agricultural inputs, yet they are subject to different VAT treatments, creating disparities in how the sector is taxed.

“I propose that the NA and the government thoroughly address this inconsistency while amending the VAT policy. Fertilisers should be returned to the group not subject to VAT, which would end ongoing debates, as fertiliser producers would still enjoy input VAT deductions even if fertilisers themselves are not subject to VAT, similar to the proposed treatment for animal feed,” Lam said.

Sharing the view that VAT ultimately burdens consumers, particularly for agricultural products, NA deputy Ta Van Ha of Danang said the claim that higher taxes could reduce prices is unconvincing. He explained that any tax increase would directly affect agriculture and, in turn, the livelihoods of 100 million people.

“The state has invested billions of dollars to support agriculture, farmers and rural areas. Therefore, having addressed animal-feed issues, we should also consider fertilisers,” he said.

However, deputy Trinh Xuan An of Dong Nai argued that products related to animal husbandry and processing are created by farmers, whereas fertilisers are produced by businesses. In practice, fertiliser manufacturers and associations have repeatedly proposed that fertilisers should be subject to a 5 per cent VAT rate.

He recalled that fertilisers were taxed at 5 per cent in 2008, but were removed from the taxable group in 2016 to allow input VAT deductions. However, because deductions did not materialise in practice, domestic fertiliser companies suffered significant disadvantages compared to importers, who could claim refunds. As a result, domestic producers were forced to add this cost to retail prices.

“This impacts people’s livelihoods or household budgets. Policies must be carefully calculated to ensure benefits for enterprises, citizens and the state. If fertilisers remain outside the VAT-taxable group, input VAT must be deductible to support domestic fertiliser production; otherwise, they face significant disadvantages,” said An, adding that if fertilisers are moved back into the taxable group, then deductions must apply to ensure fairness.

Minister of Finance Nguyen Van Thang

Minister of Finance Nguyen Van Thang explained that the VAT amendments aim to ensure consistent application of VAT for animal feed. The goal is to level the playing field with imported products that are not taxed, while domestic products currently face a 5 per cent VAT burden. The tax imposition has increased production costs and prices for domestic animal feed, hurting farmers and weakening competitiveness against imported feed.

“Therefore, the amendment seeks to remove obstacles for agricultural production, especially as the sector continues to be heavily affected by natural disasters and prolonged flooding,” the minister said. “Tax on fertilisers would be acknowledged for further thinkings, and findings would be submitted to the competent authorities.”

Impacts on VAT fertiliser rate rise considered for farmers The National Assembly Standing Committee has fixed a 5 per cent VAT rate on the draft amendments to the existing VAT law, which, if becoming true, will affect millions of farmers in Vietnam while likely benefiting fertiliser producers.

Tax move to aid fertiliser producers Fertiliser producers are expected to benefit from propitious market prospects and a forthcoming tax move.

South Korean enterprises show interest in developing green agriculture in Vietnam An increasing number of South Korean entrepreneurs are turning their attention to Vietnam, believing in the country’s economic growth potential and its goals for green and low-emission agricultural development.

This is one of the largest Cloud ERP projects in Vietnam’s materials manufacturing industry, marking a significant milestone in Phu Tai’s journey towards building a modern, data-driven centralised management model.

The move aims to accelerate business growth amid global competition, demonstrating global-standard management solutions for mid-sized enterprises through a new implementation approach.

Building on the successful pilot deployment of SAP S/4HANA Cloud Public Edition at Phutai Quartz, the group’s core quartz stone manufacturing unit for export, Phu Tai has decided to roll out the system concurrently across seven additional units.

The implementation covers all critical business domains, including finance and accounting, sales, procurement, warehouse management, production, quality management, and e-invoice integration.

Among them, stone manufacturing companies Phu Tai Binh Dinh Quartz Stone Co., Ltd., Tuan Dat Minerals Co., Ltd., Enterprise 380, Binh Dinh Stone Processing Plant, and Nhon Hoa Construction Materials Enterprise will be deployed simultaneously within four months, inheriting all operational models, processes, templates, and methodologies optimised at Phutai Quartz.

Meanwhile, implementation at wood sector companies Phu Tai Binh Dinh Wood Co., Ltd. and Thang Loi Enterprise will be tailored to the characteristics of the wood production value chain, while still adhering to group-wide governance standards.

At Phutai Quartz, within just five months, the adoption of a modern Cloud-based ERP system enabled the unit to transition to a new operating model built on a modern digital brain, helping to achieve seamlessly connected data, real-time process control, and decision-making powered by precise analytics.

More than 50 core business processes were prepared following global best practices for the quartz stone industry, along with over 60 reports and customised functions to help meet both international governance standards and Vietnamese regulatory requirements.

The impact of the strategy undertaken by Phu Tai is clearly reflected in its daily operations. Overall internal processing time dropped by 30 per cent, order handling, inventory checks, and stock decision-making were accelerated by up to 40 per cent. Real-time decision-making capabilities increased by 50 per cent thanks to dashboards and data analytics.

Inventory governance achieved exceptional accuracy with discrepancies kept below 2 per cent, while excess inventory decreased by 20-25 per cent, significantly reducing long-stagnant stock.

The demand forecasting system reached an accuracy level of up to 85 per cent, enabling Phutai Quartz to proactively secure global quartz raw materials and respond quickly to large and premium orders from demanding markets such as the US and EU.

The project is considered a trial run to validate the organisation’s readiness and adaptability, serving as a crucial foundation for Phu Tai’s confidence in the effectiveness of digitalised governance.

The large-scale deployment of SAP S/4HANA Cloud Public Edition reflects Phu Tai’s strong commitment to building a unified, modern governance platform, especially in the context of Vietnam’s stone and wood industries facing significant challenges such as rising international standards, fluctuating raw material costs, growing requirements for data transparency from export markets, and fierce competition from regional manufacturers.

The strategy of starting small and scaling up, and fully utilising the potential of Cloud ERP with implementation consulting from FPT, allows Phu Tai to access a global-standard management platform aimed at optimised cost and rapid deployment speed, a fundamentally different approach from traditional ERP implementation models.

This marks a transformative leap, propelling Phu Tai’s operational management into a new acceleration phase with technology as its backbone.

Nguyen Sy Hoe, CEO of Phu Tai JSC, giving remarks at the event

At the ceremony, Nguyen Sy Hoe, CEO of Phu Tai JSC, noted that the stone and wood manufacturing industries are inherently cautious in adopting technology because every decision directly affects productivity, quality, and operational material costs. Each factory and each production batch presents challenges in quality control, inventory accuracy, and cost efficiency. Processes are lengthy, data is siloed, material waste is hard to predict, and lead times are often prolonged.

“Therefore, together with FPT and SAP, Phu Tai has chosen a steady path, gradually building a digital operational DNA for the company, starting with Phutai Quartz as a solid foundation to scale the model across the entire group, elevating Phu Tai’s governance to international standards. We strongly believe that this next phase of innovation will drive Phu Tai’s acceleration in the new era”.

Dang Truong Thach, executive vice president of FPT IS, FPT Corporation, shared, “We sincerely appreciate Phu Tai’s leadership for continuing to place their trust in FPT as a strategic partner for this large-scale digital transformation initiative. Phu Tai launched the quartz stone project with a remarkable level of determination, aiming to go live within just five months, and together, we delivered on that ambitious commitment. This journey brought valuable lessons for both sides, and today, FPT remains a steadfast partner, supporting Phu Tai as they continue to roll out their enterprise-wide digital transformation across seven member units.”

Thach added that as the implementation expands across multiple units, this is no longer just a software project but a true transformation journey.

Dang Truong Thach, executive vice president of FPT IS, giving remarks at the event

“In digital transformation, every process must operate on a unified digital platform, much like travelling on a highway: to move fast, you must follow clear rules and cannot stop midway at will. Cloud ERP is no different; it must be built on standardised processes that align with international best practices while remaining practical for the Vietnamese business context,” he said.

Nguyen Hong Viet, managing director of SAP Vietnam, shared, “Phu Tai’s expanded roll-out of SAP S/4HANA Cloud Public Edition across its stone and wood subsidiaries reflects their forward-thinking approach to digital transformation. Building on top of Phutai Quartz’s successful transition to SAP Cloud ERP, we are proud to now support the group’s next phase of transformation together with our partner FPT. This continued collaboration shows how manufacturers like Phu Tai can rapidly and incrementally implement SAP Cloud ERP using a standardised framework and tools, helping them gain real-time insights, improve operations, and pursue sustainable growth.”

Phu Tai’s journey has become an exemplary success story, inspiring businesses to proactively embrace technology to achieve breakthrough growth, contributing to national digital transformation goals aligned with Resolution 57-NQ/TW, and strengthening Vietnam’s competitive position in global markets.

IT service providers form green transformation partnership IT service providers FPT IS and SK C&C have formed a strategic partnership to research and develop SK C&C’s net-zero factory in Southeast Asia and develop solutions to promote green transformation.

FPT IS marks 30th anniversary with vision for the future More than 3,200 FPT IS employees participated in a 24-hour series of activities at VinWonders Nam Hoi An to mark the company’s 30th anniversary and embark on a significant business shift – Go Global.

FPT IS and Metrodata partner to secure leadership in AI, cloud, and cybersecurity in Indonesia FPT IS Co., Ltd. and Metrodata Electronics, Indonesia’s leading IT company, signed a cooperation agreement on September 23 to establish a joint venture.

Flights will depart from Tan Son Nhat International Airport (Ho Chi Minh City) at 11.05 every day and land at Ninoy Aquino International Airport (Manila) at 2.50 the next morning (local time). In the opposite direction, flights will take off from Manila at 3.45 and land in Ho Chi Minh City at 5.30 the same day.

On this occasion, Vietjet is offering thousands of 0 VND tickets (excluding taxes and fees) during the golden hours of 12.00-14.00 (GMT+7) every day and an additional 20 kg of free checked baggage for passengers booking Eco tickets on www.vietjetair.com and the Vietjet Air mobile app. The offer applies to flights from January 5 to May 28 (*).

With exclusive offers from Vietjet, Manila is now closer than ever. From the dynamic capital of Manila in the Philippines, visitors can easily connect to famous beach paradises such as Boracay, Palawan, and Cebu to enjoy the bustling festival atmosphere, the unique culture, and rich cuisine of the island.

Meanwhile, Ho Chi Minh City is the most dynamic economic and cultural centre in Vietnam, famous for Nguyen Hue walking street, Notre Dame Cathedral, Ben Thanh market and diverse cuisine, bringing a vibrant urban experience, both exploring culture and enjoying modern life.

Every flight with Vietjet will be a happy experience with friends and family, inspired by the new, modern, fuel-efficient fleet with professional flight crews and heartfelt service. Passengers can also enjoy fresh hot meals, including Vietnamese and international cuisine such as pho thin, banh mi, and iced milk coffee, along with unique cultural and artistic performances at an altitude of 10,000m.

Fly to the Philippines, renew yourself, let’s Vietjet!

(*) Specific flight times depends on each route. Note: Offers do not apply to some peak flight periods.

Vietjet completes Airbus A320/A321 updates ahead of deadline Vietjet has completed urgent software and hardware updates on its A320/A321 fleet, finishing ahead of schedule and reinforcing its safety standards.

New phase launched to support women-led ventures A national conference reviewed a flagship initiative for female-led startups and launched a new decade-long support program, with Prime Minister Pham Minh Chinh presiding.

Fly to Con Dao from 0 VND with Vietjet mega promotion To celebrate the resumption of Vietjet’s services connecting Hanoi and Ho Chi Minh City with Con Dao from December 3, Vietjet is offering an attractive “Golden 3 Days” promotion with fares starting from 0 VND (excluding taxes and fees).

At the Sustainable Development 2025 Conference on November 27 in Hanoi, Nguyen Thi Ngoc Hue, senior general manager of people and brand strategy, and corporate and supplier quality management, shared the retailer’s new development agenda for 2026-2030.

Nguyen Thi Ngoc Hue, senior general manager of people and brand strategy, and corporate and supplier quality management

She said that Vietnam will remain one of AEON’s most strategic markets for the coming decade. With rapid urbanisation, stable economic growth, and an increasingly attractive business environment, Vietnam provides strong foundations for AEON to scale up.

“From 2026 to 2030, AEON Vietnam will expand into more provinces and cities to be closer to communities across the country. AEON aims to triple its revenue during this period,” she said.

This expansion involves both the number of new stores and their proximity to emerging residential areas where living standards and consumer demand are rising. Hue noted that the strong Japan-Vietnam partnership further boosts investor confidence.

“Japan and Vietnam enjoy a very strong bilateral relationship. This creates favourable conditions for AEON’s expansion, especially in the post-merger period when administrative procedures have become faster and local expansion opportunities more diverse,” she added.

More than a decade of operations in Vietnam has enabled AEON to accumulate valuable experience in developing local supply chains. As the retailer expands its footprint, its ability to connect with suppliers across the country also increases.

Hue emphasised that support from local authorities has helped AEON proactively source products and access more small- and medium-sized enterprises. This creates opportunities to bring speciality and local products into AEON’s modern retail system.

“We hope to offer convenient products at good prices for consumers, while partnering with local businesses to develop their unique regional products,” she said.

In recent years, consumer behaviour has shifted significantly. Post-Covid, shoppers increasingly prioritise health, product quality, and transparency of origin. As a result, the share of green, clean, and organic products at AEON has risen sharply, aligning with the retailer’s quality standards.

To ensure product quality, AEON applies rigorous inspection processes. Its teams frequently visit suppliers’ facilities to verify production conditions and product integrity.

AEON also conducts annual training sessions for existing suppliers, sharing solutions to common challenges. Potential suppliers are supported through seminars that provide guidance on AEON’s standards and best practices from small suppliers who have successfully transformed into official partners.

Hue explained that AEON adopts a three-stage development roadmap for suppliers:

• Stage 1: Preparation – helping potential partners understand requirements and build necessary capabilities.

• Stage 2: Partnership – supporting suppliers in improving production, management, and product quality, including participation in AEON’s private label programme, AEON TopValue.

• Stage 3: Export – once suppliers reach the required level, products can be exported to overseas markets through AEON’s network.

“AEON not only partners with suppliers but also trains them. We expect Vietnamese suppliers to go beyond the domestic market and eventually enter international markets,” she said.

Beyond retail and supply chain development, AEON dedicates significant resources to community education, especially nurturing the next generation.

AEON’s education ecosystem is structured around three pillars: knowledge, experience, and financial support, tailored to three groups: primary school pupils, secondary school students, and university students. For primary students, AEON offers the AEON Cheers Club and AEON’s “sustainability squad”, focusing on environmental education and experiential learning.

For secondary students, the AEON Ambassador programme enables participants to exchange ideas on sustainability and join creative competitions. For university students, AEON provides scholarships and opportunities to join the Asian Youth Leaders programme, where they engage with peers from across Asia to discuss sustainable development issues in their respective countries.

These programmes help young Vietnamese gain international exposure, deepen their understanding of sustainability, and strengthen community engagement.

With strong momentum in expansion, efforts to upgrade product standards, support for local suppliers, and investments in future generations, AEON Vietnam is shaping a retail model that stays deeply connected with local communities.

These initiatives are not only the long-term commitment of a Japanese investor in Vietnam, but also reflect the country’s broader sustainable development goals.

AEON Vietnam expands retail footprint in 2025 Japanese retail giant AEON Vietnam is accelerating its expansion plans in 2025, following the opening of two new business locations in October, marking a new phase in the company’s strategy to diversify retail formats and scale operations across different regions.

AEON Group provides $184,000 in relief to storm-affected communities AEON Group in Vietnam has donated over $184,000, including $80,000 worth of essential goods, to support communities affected by typhoons Matmo and Bualoi, reaffirming its commitment to social responsibility and disaster relief efforts.

Green manufacturing insights and transformations: SABECO’s path to industry leadership In an era when global market forces, consumer expectations, and national emphasis converge towards sustainability, green manufacturing has shifted from a corporate aspiration to an economic imperative. For Vietnam, this shift is especially urgent, and highly strategic.

In an announcement on November 28, the European aircraft manufacturer said the updates affect a significant portion of the A320 family fleet, prompting airlines to review operations and prepare for possible short-term changes to flight schedules as the checks and modifications are carried out.

According to a preliminary assessment, analysis of in-service aircraft indicates that a significant number of A320 family jets could be affected and may require immediate precautionary action.

An emergency airworthiness directive issued by the European Union Aviation Safety Agency requires affected airlines to implement the modification before their next flight, effective from 23:59 UTC on November 29.

Based on this foundation, Airbus has released a notice to operators, requesting immediate precautionary action through the available software and/or hardware updates.

The incident is expected to lead to operational disruptions for passengers globally at the weekend. In Vietnam, 63 planes of Vietnam Airlines and 65 planes of Vietjet are thought to be affected.

Airbus and FPT deepen digital partnership Airbus signed a new supplier agreement with leading Vietnam-based technology and IT services provider FPT on June 11 to strengthen their long-standing collaboration.

Vietjet places new order for 100 A321neo aircraft Vietjet and aircraft manufacturer Airbus on June 17 announced a major new order for 100 A321neo aircraft, with the potential to add another 50 in the future.

Vietjet orders 100 Airbus A321neo aircraft Vietjet has made a significant order for 100 Airbus A321neo aircraft, marking a new milestone in UK-Vietnam ties.