The event aimed to help Vietnamese companies grasp key policy changes and prepare appropriate response strategies.

Opening the event, Vietnamese Trade Counsellor in India Bui Trung Thuong noted that on September 3, the Indian Government approved the new Goods and Services Tax (GST 2.0), which will take effect on September 22.

Under the reform, the multi-tier tax system will be simplified to two main rates of 5% and 18%. More than 200 essential items including electronics, automobiles, medical equipment, footwear, and household goods will benefit from tax cuts.

This is a landmark reform that promises to generate profound changes in India’s business landscape and will directly affect Vietnamese investors, producers, and exporters in this market, Thuong said.

Ridhima Mehta, a tax expert at KPMG India, said GST 2.0 centres on simplifying tax structures, adjusting rates, and modernising administrative procedures. Fewer tax brackets will help reduce disputes and provide greater transparency and stability while digitalised registration, filing, and refund processes will ease compliance for small businesses, start-ups, and exporters.

She highlighted that several sectors stand to gain, notably health care, education, textiles, agriculture, electronics, and essential consumer goods. Conversely, coal and other polluting energy sources will face higher taxes to promote clean energy. Meanwhile, life and health insurance will be fully exempt from GST, creating momentum for India’s insurance market.

For Vietnamese businesses, the reform not only helps to lower costs and boost competitiveness but also requires swift adaptation, Mehta stressed. Firms are advised to adjust management systems, update ERP software, review contracts, manage inventory carefully, and devise appropriate pricing strategies to maximise benefits.

Between January and July 2025, Vietnam’s exports to India reached US$5.94 billion, up 10.7% year-on-year, maintaining a trade surplus. Key export items such as steel, textiles, and plastic products are expected to gain from the new tax regime. However, sectors like footwear, farm produce, and aquatic products may face stronger competition due to India’s temporary refund scheme and domestic consumer goods incentives.

Hoa Phat’s HRC steel avoids India's anti-dumping duty, others face tariff

India’s Directorate General of Trade Remedies (DGTR) has issued its final determination in the anti-dumping investigation into hot-rolled coil (HRC) steel imports from Vietnam. Under the decision, HRC produced by Hoa Phat Group will not be subject to anti-dumping duties.