Deputy Director of the Department of Taxation Dang Ngoc Minh and the delegation of the Ministry of Finance at the working session (Photo: Pham Huan/VOV-Washington)

Vietnam and the US signed the agreement in Washington, D.C. on July 7, 2015. Following the signing, Vietnam completed all necessary procedures for ratification in accordance with its 2016 Law on International Treaties.

However, because of a major policy change in 2017, the US has not yet ratified the agreement and it has never entered into force.

Implementation of the Double Taxation Avoidance Agreement would establish a legal framework that would protect businesses when conducting trade or investment activities in the other country.