The approval of the Double Taxation Avoidance Agreement will create a legal framework to encourage and protect businesses of the two countries when conducting business or investment.

Within the framework of a working trip to the United States and attending the “SelectUSA 2025” Investment Program in the United States, Mr. Dang Ngoc Minh, Deputy Director of the Tax Department, led a number of members of the Ministry of Finance’s working delegation to have a working session with Ms. Rebecca Burch, Deputy Assistant Secretary of the US Treasury Department and a number of members on a number of issues including the Double Taxation Avoidance Agreement between Vietnam and the United States (DTA).

The Double Taxation Avoidance Agreement (DTA) between Vietnam and the United States (US) was signed on July 7, 2015 in Washington, USA. After the Agreement was signed, Vietnam completed the procedures for approving the validity of the agreement between the two countries in accordance with the provisions of the Law on International Treaties 2016.

However, since 2017, after major policy reforms by the United States, the United States has yet to ratify the agreement between the two countries, so this document has not yet come into effect.

Currently, countries are in the process of negotiating Pillars 1 and 2 within the framework of the OECD/G20 global tax reform initiative on Base Erosion and Profit Shifting (BEPS) to avoid taxes by multinational corporations. Therefore, the United States has proposed that countries that have signed the Double Taxation Avoidance Agreement with the United States amend and supplement the signed agreements, including Vietnam.

Ms. Rebecca Burch, Deputy Assistant Secretary of the Treasury Department of the United States

During the meeting, the two sides clarified their views and positions on the draft Protocol proposed by the US side. From there, relevant agencies of the two countries will continue to review and revise it to submit to competent authorities.

The approval of the Double Taxation Avoidance Agreement between Vietnam and the United States will create a legal framework to encourage and protect businesses of the two countries when conducting business or investing in the other country.According to data provided by the Foreign Investment Agency, as of April 30, 2025, the United States currently has 1,447 valid projects with a total registered capital of more than 11.94 billion USD, ranking 10th out of 143 countries/territories investing in Vietnam. US investors have invested in 18/21 sectors in the national economic sector classification system, of which investment capital is most concentrated in the accommodation and food service sectors; processing and manufacturing industries; followed by the following sectors and fields: water supply and waste treatment; real estate business activities; transportation and warehousing… Meanwhile, Vietnam has 252 investment projects in the United States with a total investment capital of 1.36 billion USD. Vietnam’s investment projects are concentrated in professional, scientific and technological activities; real estate business activities; processing and manufacturing industries.