APPLYING BLOCKCHAIN TECHNOLOGY FOR VALUE-ADDED TAX MANAGEMENT IN VIETNAM

Value-added tax (VAT) is a key source of government revenue in Vietnam. However, issues like tax evasion, fraud, and revenue leakage present major challenges. This paper explores the potential of blockchain technology to modernize and optimize VAT management in Vietnam. Blockchain's decentralized, immutable ledgers can enhance transparency, reduce fraud, and streamline tax processes. The paper reviews global blockchain case studies in Estonia, China, and the EU. It then analyzes Vietnam's VAT system and proposes a blockchain framework incorporating digital invoices, smart contracts, and inter-agency data sharing. A phased implementation plan is recommended focusing rst on e-invoicing, followed by payment automation and advanced data analytics. Blockchain can signicantly improve VAT collection efciency and transparency in Vietnam. However, success requires strong institutional support, public-private collaboration, updated regulations, and major investments in digital infrastructure and human capital.