Vietnam Considers Automatic Tax Refunds for Tourists to Boost High Spending Travel

Vietnam is exploring a shift to automated tax refunds for international visitors, a move that could significantly increase tourist spending and modernize the country’s travel experience.

The proposal comes from Global Blue, a leading global tax refund operator, which has offered to support Vietnam in deploying a fully digital, automated system for value added tax refunds.

Why tax refunds matter more than ever

Shopping is becoming a central driver of travel decisions, not just a secondary activity.

According to Global Blue, international tourists spend an average of 800 USD on shopping at their destination. Countries that make tax refunds fast and seamless tend to capture a larger share of that spending.

For Vietnam, which is positioning itself as a rising tourism and retail hub, improving the refund process could unlock a new layer of economic value.

What would change with a digital system

Today, tax refunds in many countries still involve paperwork, queues, and manual verification.

A fully electronic system would automate the process, allowing travelers to:

Register purchases digitally
Verify eligibility through secure systems
Receive refunds faster with minimal paperwork

Global Blue’s model focuses on two key outcomes: stronger fraud prevention and a smoother user experience. By digitizing the process, authorities can also gain better visibility into tourist spending patterns.

A proven model across Asia

The system is already in use across 45 countries, including major Asian markets such as Japan, South Korea, China, and Singapore.

Governments in these markets credit digital tax refund platforms with reducing fraud, increasing transparency, and enhancing their appeal to international shoppers.

Several Southeast Asian countries, including Thailand and the Philippines, are also evaluating similar systems as competition for high spending tourists intensifies.

Why this is strategically important for Vietnam

Vietnam’s tourism sector is expanding rapidly. In 2025, the country welcomed over 21 million international visitors, with growth exceeding 20 percent year on year.

As the sector matures, the focus is shifting from volume to value, attracting visitors who spend more on retail, dining, and premium experiences.

A seamless tax refund system supports that transition by:

Encouraging higher spending per visitor
Improving overall travel experience
Strengthening Vietnam’s positioning against regional competitors

What happens next

Vietnam’s tourism authorities are currently reviewing the proposal and assessing its feasibility in coordination with relevant agencies.

Global Blue has also offered to share data on tourist shopping behavior, which could help policymakers design more targeted strategies for tourism development.

The bottom line

Automated tax refunds may seem like a technical upgrade, but they carry significant economic implications.

For Vietnam, adopting a digital system could be a decisive step toward becoming not just a popular destination, but a high value one where international visitors are encouraged to spend more and stay longer.