Bac Ninh hosts one of the densest concentrations of foreign-invested manufacturing in northern Vietnam, particularly across the electronics and precision engineering supply chain. Following the administrative merger effective 1 July 2025, the province’s industrial footprint and FDI base expanded significantly — bringing a set of accounting, tax and compliance issues that many companies have yet to revisit.
TrustlineAX Advisory provides accounting, tax and compliance services to FDI companies operating in Bac Ninh, working bilingually in English and Vietnamese, with hands-on experience supporting export processing enterprises, contract manufacturers and tier-one and tier-two suppliers.
The FDI landscape in Bac Ninh after the provincial merger
Effective 1 July 2025, under Resolution No. 202/2025/QH15 of the National Assembly and Resolution No. 1658/NQ-UBTVQH15 dated 16 June 2025 of the Standing Committee, Bac Giang province was merged into Bac Ninh province. The merged province covers 4,718.60 km² with a population of 3,619,433, comprising 99 commune-level administrative units (66 communes and 33 wards), with the administrative centre located in the former Bac Giang city area.
The merger created a continuous industrial corridor of 33 industrial parks spanning over 10,384 hectares. Key parks include Yen Phong I and II, VSIP Bac Ninh, Que Vo I–II–III, Van Trung, Quang Chau and Dinh Tram — concentrating electronics component manufacturing, precision mechanics, industrial packaging and advanced materials.
On capital inflows, published figures for the first seven months of 2026 show Bac Ninh attracting over USD 2.73 billion in FDI, with January 2026 alone accounting for more than USD 2.29 billion. On a cumulative basis as at mid-2026, industrial parks in the province hosted approximately 1,670 active FDI projects with total registered capital of nearly USD 41 billion. The FDI sector now accounts for close to 80% of the province’s industrial output value and export turnover. Nationally, Bac Ninh ranks among the leading destinations for FDI, behind Thai Nguyen, Ho Chi Minh City and Hanoi.
Note: the figures above are compiled from publicly published sources as at August 2026 and may change with each reporting period.
Accounting and tax issues specific to FDI companies in Bac Ninh
The statutory accounting and tax obligations that apply in Bac Ninh are the same as elsewhere in Vietnam. What differs is frequency of exposure: the province’s industry mix means certain risk areas arise far more often than in other localities.
| Common operating profile in Bac Ninh | Accounting and tax issues to watch |
|---|---|
| Export processing enterprises (EPEs) and on-the-spot export transactions within the electronics supply chain | Conditions for VAT refunds on exports; bank payment evidence requirements; risk of input VAT being disallowed where funds are routed through a third party in Vietnam |
| Subsidiaries of Korean, Japanese and Taiwanese groups with extensive intercompany purchases, loans and management fees | Transfer pricing documentation under Decree 255/2026/ND-CP (applicable from the 2026 CIT period): Master File, Local File and Country-by-Country Report; 30% EBITDA cap on deductible net interest expense |
| Foreign engineers and technicians deployed for installation, technology transfer and maintenance | Foreign contractor tax (FCT) on services supplied by the parent company or offshore contractors; tax residency determination and PIT finalisation for expatriates; work permit documentation |
| New projects inside industrial parks still in the construction-in-progress phase | Establishing and maintaining CIT incentives by location and sector; VAT refunds during the investment phase; fixed asset registers and the correct depreciation commencement date |
| Contract manufacturing and import of raw materials for export production | Consumption norm management and customs finalisation reporting; reconciliation of warehouse records against the general ledger; treatment of material variances and scrap |
| Administrative boundary change effective 1 July 2025 | Reviewing and updating the registered address on the Enterprise Registration Certificate, Investment Registration Certificate, e-invoice templates and social insurance records; confirming the tax office now in charge |
Tax administration after the merger
Alongside the boundary changes, the tax authority structure was reorganised. Companies in the province are now administered by the Bac Ninh Provincial Tax Department together with 10 subordinate base-level tax units, established under Decision No. 1378/QD-CT of 2025. In practice this is a commonly overlooked point: filings still reference the former tax office, causing delays with refund claims, invoice registration and tax audits.
Further reading on VAT refund conditions — the issue we see most frequently among exporters in Bac Ninh:
- Receiving export payment through an intermediary company in Vietnam: you could lose your VAT refund
- Buying import-origin goods from a local trader then on-the-spot exporting: does the ban on VAT refunds still catch you?
Services we provide to FDI companies in Bac Ninh
1. Accounting and financial statements
- Monthly bookkeeping under Vietnamese Accounting Standards (VAS)
- Annual financial statements prepared for the statutory independent audit required of FDI companies
- Bilingual management reporting in your parent company’s format
- Fixed asset and tooling registers, depreciation and prepaid expense allocation
- Support during the year-end independent audit
2. Tax filing and compliance
- VAT, PIT and provisional and annual CIT filings
- Foreign contractor tax (FCT) declarations on parent company and offshore supplier transactions
- Preparation of VAT refund files for exporters and investment-phase projects
- Review and maintenance of CIT incentives by location and investment sector
- Support during tax audits and inspections, including drafting explanatory submissions
3. Transfer pricing documentation
- Identification of related parties and reportable related-party transactions
- Preparing the related-party declaration appendices filed with the annual CIT finalisation, and assessing whether the company is exempt from the Local File and Master File
- Review of the deductible interest cap for companies with parent company loans
- Pre-finalisation risk assessment and adjustment planning
4. Payroll, insurance and foreign employees
- Payroll processing, PIT withholding and compulsory insurance filings
- Tax code registration and PIT finalisation for expatriate staff
- Advice on work permits and temporary residence cards for foreign employees
- Tax residency determination and application of double taxation agreements
How we work with companies in Bac Ninh
Our office is in Hanoi, roughly 30–50 km from Bac Ninh’s main industrial parks — close enough to attend on site when original documents need to be reconciled, stocktakes performed or a tax inspection attended in person. A typical engagement runs as follows:
- Initial review — assessment of the Investment Registration Certificate, Enterprise Registration Certificate, the current state of tax filings and incentives being claimed
- Handover and data clean-up — taking over existing records, resolving backlogs, aligning the chart of accounts and reporting templates with the parent company
- Ongoing operation — bookkeeping, preparation and submission of returns to statutory deadlines, with monthly reporting in both English and Vietnamese
- Pre-finalisation review — tax risk review, transfer pricing documentation and refund eligibility checks before the year-end close
- Ad hoc support — liaison with tax and customs authorities and coordination with your independent auditor
Frequently asked questions
Does the provincial merger mean our company needs a new tax code?
No. A company’s tax code does not change when administrative boundaries are reorganised. However, you should review the registered address shown on the Enterprise Registration Certificate, the Investment Registration Certificate, e-invoice templates and social insurance records, and confirm which base-level tax unit now administers your file so that submissions are not sent to the wrong office.
Can an export processing enterprise in a Bac Ninh industrial park claim VAT refunds?
Companies with export activity may recover input VAT provided all statutory conditions are met. The condition that most often causes problems is evidence of payment through a bank. Where export proceeds are not remitted directly from the foreign importer’s account into an account in the exporter’s own name, but instead pass through an intermediary entity in Vietnam, the transaction may fail the condition and the related input VAT can be disallowed. Given the multi-tier supply chain structures common in Bac Ninh, this warrants review before a refund claim is filed.
Do Korean- or Japanese-owned companies in Bac Ninh have to prepare transfer pricing documentation?
Companies with related-party transactions — including intercompany purchases and sales, loans, management fees or royalties paid to a parent company — fall within the declaration and documentation requirements unless a statutory exemption applies. From the 2026 CIT period, the governing framework is Decree 255/2026/ND-CP. We assess the specific obligation based on each company’s ownership structure and the substance of its transactions.
How much do accounting services for an FDI company in Bac Ninh cost?
Fees depend on monthly transaction volume, the nature of operations (trading, manufacturing or export processing), headcount, whether related-party transactions exist, and whether English-language reporting is required for the parent company. We quote after reviewing your actual records rather than applying a fixed price list.
Will TrustlineAX attend our factory in Bac Ninh in person?
Yes. Alongside remote working through electronic document workflows, our team can attend your factory or office in Bac Ninh where original documents need to be reconciled, for year-end stocktakes, or to support you during a tax inspection.
Speak with our specialists
If your company operates in Bac Ninh and needs to revisit its tax filings after the merger, prepare a VAT refund claim, or appoint an outsourced accounting team that can work in English with your parent company, get in touch for a free 30-minute consultation.
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This page is provided for general reference and does not replace specific advice on an individual company’s records or transactions.