Vietnam introduces new corporate income tax exemptions and reductions under Decree 20/2026
Vietnam has officially introduced a new corporate income tax (CIT) incentive framework aimed at strengthening private sector growth, following the issuance of Decree No. 20/2026/ND-CP. The decree, enacted under Resolution 198/2025/QH15, outlines a series of tax exemptions and reductions designed to support businesses.
One of the central provisions of Decree 20/2026 is a full CIT exemption for newly registered small and medium-sized enterprises (SMEs) during their first three consecutive years of operation.
The decree also extends tax incentives to innovative startups, investment fund managers, and intermediary organizations that support innovation. Qualifying entities engaged in innovative activities will benefit from preferential tax treatment on qualifying income.
Additionally, Decree 20 introduces capital gains and personal income tax benefits for contributors to startup enterprises. Income from transferring shares or capital contributions in innovative startups may be exempt from CIT. Furthermore, experts and scientists working in private-sector innovative enterprises are eligible for personal income tax incentives.
This shift in policy reflects a more targeted approach to tax reform. Rather than broad-based tax support, the government is focusing on incentives that improve capital efficiency, foster innovation, and enhance the overall competitiveness of Vietnam’s private sector in the medium to long term.
Decree 20/2026 significantly enhances Vietnam's corporate tax incentive system by expanding eligibility and clarifying incentive mechanisms for SMEs, innovative startups, and investment intermediaries. The changes free up financial resources for firms to invest in innovation, scale operations, and attract talent - key drivers of a dynamic private sector. Capital gains and personal tax incentives further demonstrate the government's commitment to encouraging investment in high-growth economic segments.
Vietnam fashion retailer Hapas seeks $15M fundraise to fuel Southeast Asia expansion
Vietnam-based fashion retailer Hapas is seeking to raise at least USD 15 million in a new fundraising round, with Index Partners acting as the sell-side advisor, according to sources from DealStreetAsia.
In 2022, Hapas received an impact-linked investment from Beacon Fund (Patamar Capital), which highlighted the fact that 80% of Hapas' management team were women entrepreneurs. Since then, Beacon Fund has fully exited the company, indicating a transition away from impact capital toward growth-stage capital.
Hapas positions itself in the affordable luxury segment, selling bags and accessories through a network of 16 physical stores across Vietnam. However, the majority of its sales currently come from e-commerce platforms such as TikTok Shop and Shopee, reflecting a strong omnichannel strategy. To strengthen brand control and improve margin structure, the company is now planning to develop its own direct sales channels, aiming to reduce its dependence on third-party marketplaces.
As part of its regional expansion strategy, Hapas has already begun online sales in Thailand and intends to grow its offline retail presence in both Thailand and Indonesia over the coming years. These two countries represent Southeast Asia’s largest e-commerce markets.
Operationally, Hapas has demonstrated solid performance. The company reportedly generated USD 19 million in revenue in the 12 months ending September 2025, with approximately USD 3 million in EBITDA, being an indicator of its improving operational maturity.
Hapas’ fundraising reflects a broader shift in Vietnam’s consumer startups—from early-stage impact and marketplace-driven growth toward profitability-focused, omnichannel regional expansion strategies. With Southeast Asia’s e-commerce markets continuing to scale and competition intensifying, this round positions Hapas to evolve from a Vietnam-first digital brand into a regional consumer brand, which controls over distribution channels, brand equity, and offline presence will be critical for long-term defensibility and valuation growth.
Vietnam’s Highland Coffee eyes $300-400M IPO in domestic market
Vietnamese coffee chain Highlands Coffee is exploring a potential initial public offering (IPO) on the domestic stock exchange, with plans to raise between USD 300-400 million, according to Bloomberg. This move comes as the company continues to demonstrate strong financial performance and aims to capitalize on growing investor interest in locally rooted consumer brands.
In the third quarter of 2025, Highlands Coffee reported an EBITDA of approximately 666 million pesos (around VND 297 billion), marking a 17.1% year-on-year increase. This growth reflects improved operational efficiency and a steady path toward greater profitability.
The IPO initiative is part of a broader strategy by its parent company, Jollibee Foods Corporation (JFC), one of the Philippines' largest food service groups. Highlands Coffee is considered a high-performing asset within JFC’s portfolio and plays a significant role in its regional expansion plans.
Although the IPO is still in the planning stage, Highlands Coffee has already engaged financial advisors and may invite additional banks to participate. Final details on the size and timing of the offering are still under discussion.
Founded in 1999, Highlands Coffee has grown to become one of Vietnam’s most prominent café chains. The company continues to expand its retail footprint while reinforcing its financial foundation in preparation for a potential public listing.
Highlands Coffee's potential IPO reflects growing investor interest in consumer-focused, locally rooted brands with strong market recognition. If executed well, this listing could become one of Vietnam's most notable IPOs in recent years—a domestic capital-raising milestone for F&B companies that may encourage similar exits across retail and lifestyle sectors.
Dragon Capital Vietnam Fund Management begins trading on UPCoM
Dragon Capital Vietnam Fund Management Joint Stock Company (DCVFM) has officially made its trading debut on Vietnam’s Unlisted Public Company Market (UPCoM), part of the Hanoi Stock Exchange. The listing, under the ticker symbol DCV, marks a major milestone for both the company and the broader Vietnamese capital market.
As of January 19, 2026, all 31.2 million shares, representing 100% of DCVFM’s charter capital, were registered for trading. This full float listing follows the company’s approval as a public company by the State Securities Commission of Vietnam in late 2025, reflecting a strategic step toward deepening its public presence and long-term vision.
Established in 2003 under the name VietFund Management, DCVFM holds the distinction of being Vietnam’s first domestic fund management company. Over the years, it has evolved into one of the country’s leading fund managers, and its public listing signals a strong commitment to transparency and institutional development within the local financial ecosystem.
DCVFM's debut on UPCoM marks a significant milestone for both the company and Vietnam's capital markets. As one of the country's leading fund managers, its public trading status adds
market depth and gives investors clearer visibility into the asset management sector's performance. This move reflects the broader momentum in Vietnam's IPO and listing activity, which has gained traction recently—signaling renewed confidence in equity markets as a channel for long-term capital mobilization.
Ho Chi Minh City builds interregional innovation network to support startup growth
As part of its 2026 startup development roadmap, Ho Chi Minh City (HCMC) is establishing an interregional innovation network designed to strengthen the startup ecosystem by connecting investors, regulators, and entrepreneurs across regions.
Following recent administrative reforms, HCMC now combines its strengths in digital transformation and innovation (formerly HCMC) with the industrial capacity of Binh Duong and the logistics expertise of Vung Tau. This regional synergy creates broader opportunities for startups to tap into diverse resources, capabilities, and markets.
The HCMC Innovation Hub (Sihub) is at the center of these efforts, deepening collaboration between government agencies, leading corporations, and strategic investors. Through Sihub, selected startups receive tailored support to scale beyond pilot phases and enter sustainable growth trajectories.
Cross-regional collaboration is also expanding market access. Sihub is partnering with neighboring provinces to form networks in key sectors such as technology, logistics, and cultural industries. These partnerships enable startups to test products in real market conditions while accessing specialized regional support.
Additionally, HCMC is working to connect local innovation projects to global impact capital. At recent events, 18 projects in logistics, artificial intelligence, sustainability, and industrial tech were successfully linked with AVPN ImpactCollab, a global network of over 700 investors focused on sustainable and impact-oriented financing.
HCMC's initiative to build an interregional innovation network marks a shift from isolated city-centric support to a broader collaborative ecosystem spanning multiple economic zones. By connecting startups with government agencies, strategic investors, and global impact capital, the network fosters long-term growth, real market validation, and cross-regional scaling - strengthening Vietnam's position as a leading startup hub in Southeast Asia.
