Why did the EU place Vietnam on its list and what changes now?

An OECD peer review of 2021–2023 informed the EU move. Vietnam EU tax blacklist status raises bank scrutiny, not trade bans. Expect stricter KYC, more proof of tax residency, and closer checks on transfer pricing and treaty claims. Good documentation should keep payments and clearances moving.

How soon could Vietnam exit the list?

There is no fixed date. Removal depends on Vietnam showing effective reforms and cooperation in line with OECD tax transparency standards. After evidence builds, EU reviews can change status. Investors should track official guidance and practical milestones that improve information exchange and enforcement.

What should Indian companies change in contracts and processes?

Add representations on compliance and beneficial ownership, and stage payments against delivery plus tax documents. Build time buffers for bank reviews. Keep current transfer pricing files, tax residency certificates, and substance proofs. These steps reduce delays tied to the Vietnam EU tax blacklist and support smoother remittances.

Will this listing raise costs or reduce FDI interest?

Short term, tighter checks can add time and advisory costs. Strong files can limit the impact. The Vietnam investment climate still draws interest, as reforms advance. Over time, better compliance and OECD tax transparency can lower risk premia and help restore routine banking and tax processing.

Law and Government

Vietnam on EU Tax Blacklist; Govt Pledges OECD Reforms – February 23

ByHuzaifa Zahoor February 23, 2026February 23, 2026

Vietnam EU tax blacklist status on 17 February followed an OECD peer review of 2021–2023. Vietnam said it values OECD tax transparency and is working with EU partners on reforms. For Indian investors, this matters for cross‑border deals, supply chains, and tax risk. We explain what the listing means, how Hanoi plans to respond, and what steps can reduce compliance and timeline risk in India‑Vietnam trade. The goal is clear, make informed portfolio and procurement choices as the Vietnam investment climate adjusts.