On October 9, 2026, the European Union officially removed Vietnam from its tax blacklist. Vietnam was originally added to this list in February 2026. The quick removal and shift to the EU’s “Grey List” (Annex II) shows that Vietnam is actively working to meet global tax standards.
Relief for German Investors For German companies, this brings major relief from Germany’s Tax Haven Defence Act (StAbwG). This law places heavy tax penalties on businesses dealing with blacklisted countries. Because Vietnam was on the blacklist for only eight months, German investors avoided the most severe penalties. They will not face strict extra taxes, a new 15% withholding tax, or the loss of their right to deduct ordinary business expenses.
Benefits for European Businesses For all European companies, this change makes doing business in Vietnam safer and less complicated. Companies that manufacture goods, source materials, or manage supply chains in Vietnam will not have to deal with surprise tax costs or heavy paperwork. This keeps European operations in Vietnam efficient and profitable.
Vietnam’s Improving Global Reputation This quick resolution proves that Vietnam is serious about fair and open tax rules. By addressing the EU’s concerns so fast, Vietnam shows it is a reliable partner that is willing to cooperate with international standards.
What Companies Should Do Now European businesses can now confidently expand their operations, open new factories, and invest more money in Vietnam. Companies that set up special, defensive tax measures between February and October 2026 should review and adjust them with their advisors. At the same time, companies must continue to keep highly accurate records for all cross-border business deals and payments.
Things to Keep in Mind Being moved to the “Grey List” means the EU is still monitoring Vietnam’s progress. It is a sign of good faith, but it is not a complete free pass. Companies must still follow all standard tax filing, reporting, and pricing rules very carefully.
The Duane Morris Vietnam Perspective At Duane Morris Vietnam, we see this as excellent news. It proves once again that Vietnam is a highly attractive, long-term home for European investment. For German and European businesses looking for a safe and competitive place to build their supply chains in Asia, Vietnam’s quick action shows the government is deeply dedicated to supporting a healthy, transparent business environment.
***
For more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under [email protected]. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.