“Heartfelt Dilemma: Ho Chi Minh City Vendors Forced to Raise Prices”

According to the newly amended Personal Income Tax Law passed by the National Assembly, the revenue threshold exempt from tax for households and individual businesses is set at 500 million VND per year.

The law also introduces a provision for households and individual businesses with revenue between 500 million VND and 3 billion VND per year, applying a tax calculation based on income (revenue minus expenses).

This means higher income leads to higher taxes, while lower income results in lower taxes; those with no income are exempt from taxation. In response to these changes, several eateries in Ho Chi Minh City have begun adjusting their prices.

A fish noodle soup shop, operating for over three years in HCMC, recently announced a price increase. The owner explained that they had maintained stable prices to offer customers affordable meals. However, due to rising costs of raw materials and other expenses, coupled with the new business tax regulations effective from January 1, 2026, the shop had no choice but to adjust prices.

Each menu item will increase by approximately 3,000 VND. The owner assures that despite the price change, the food quality remains unchanged since the shop’s opening.

Further elaborating on the adjustment, the owner cited soaring raw material costs and additional expenses related to invoicing. After careful consideration, the 3,000 VND increase is deemed sufficient to cover costs, sustain operations, and minimize impact on customers.

“With the new regulations, compliance is mandatory. However, maintaining current prices would make it unsustainable after deducting VAT and personal income tax,” the owner stated.

Beyond fish noodle shops, a Quang-style noodle shop in HCMC is also preparing to raise prices. Ms. Thao, the owner, noted that since the beginning of the year, prices of ingredients like meat, shrimp, vegetables, and noodles have risen steadily, alongside significant increases in rent and labor costs.

The upcoming tax adjustments and new invoicing requirements from January 1, 2026, further exacerbate costs. Despite efforts to maintain prices, the owner admits that continuous cost fluctuations make it impossible to sustain without adjustments.

“The shop plans a modest increase of 5,000 VND per bowl to offset additional expenses, while ensuring consistent flavor and quality. We are reluctant to raise prices, as our customers are primarily workers and students, but it’s essential for our survival. This increase is unavoidable,” the owner shared.