Vietnam’s National Assembly has approved changes to the tax law, requiring local operators of foreign ecommerce platforms to pay value-added tax (VAT) starting July 1, 2025.

The standard VAT rate will also rise from 8% to 10%.

The assembly has also urged the government to end the tax exemption for imported goods under 1 million dong (US$40).

Vietnam’s ecommerce sector, valued at US$22 billion, is growing fast, with about 5 million daily orders, according to state media.

Key platforms in the country include Singapore’s Shopee, China’s Lazada, TikTok, Shein, and Temu, which entered Vietnam in October.