I. INTRODUCTION Implementing the direction of the Association's Chairman, on July 28, 2025, on behalf of the Vietnam Cashew Association (VINACAS), I attended the Conference to collect opinions on the 5% value-added tax (VAT) policy for agricultural products, chaired by the Department of Tax, Fee and Charge Policy Management and Supervision - Ministry of Finance. The conference was attended by representatives of many industry associations, General Import-Export Corporations of Agricultural, Forestry and Fishery Products and tax consultants. The objective was to assess the practical impact, receive recommendations and prepare the content of the report to submit to the Minister of Finance and the Government. The conference was attended by representatives of many industry associations, General Import-Export Corporations of Agricultural, Forestry and Fishery Products and tax consultants. The objective was to assess the practical impact, receive recommendations and prepare the content of the report to submit to the Minister of Finance and the Government. II. CONFERENCE CONTENT The new policy takes effect from July 1, 2025, requiring businesses in the agricultural, forestry, and fishery sectors to declare and apply a 5% input VAT rate. Tax refunds will be made after exporting goods and fully meeting the prescribed conditions. However, most of the Associations and businesses at the conference expressed difficulties and proposed to temporarily suspend implementation, or apply the old tax policy because this policy is not suitable for the characteristics of the agricultural, forestry, and fishery export industry, causing serious difficulties in cash flow, increasing financial risks and reducing international competitiveness. III. OPINIONS OF REPRESENTATIVES OF THE VIETNAM CASHEW ASSOCIATION (VINACAS) I have clearly stated the impacts of the new policy on the cashew industry, including: 1. Long tax refund period causes serious capital jam • The cashew industry has an export rate of over 90%, businesses are mainly small and medium enterprises whose capital source depends heavily on banks. • According to the process: Enterprises buy raw cashews during the harvest season, go through drying, warehousing, production, transportation and export, then customers pay, the total time can last 6-8 months to be eligible for tax refund documents. • Meanwhile, VAT must be paid to suppliers on the 20th of the month after purchase, causing capital jam for a long time, increasing financial costs, especially interest costs. 2. Exporting enterprises must bear risks from suppliers (traders) • The new policy requires a valid VAT invoice to be refunded. However, in reality, in many cases, suppliers or traders take advantage of not paying taxes or absconding, declaring bankruptcy, then exporting enterprises lose the right to tax refund, even though they have fully paid their tax obligations. • This situation had occurred seriously before 2013, causing great losses, loss of confidence, and negative developments in the entire industry. The State at that time adjusted its policy and did not require tax deduction declaration for agricultural, forestry and aquatic products. 3. Tax authorities do not have enough human resources to process the volume of tax refund dossiers. • The cashew industry alone has more than 300 enterprises exporting regularly. If each enterprise makes a tax refund once a month, there are thousands of dossiers each year, not to mention other industries. • With the current human resources and infrastructure system of the tax industry, it is difficult to ensure the processing progress - causing backlog of dossiers, continuing to prolong the tax refund period, creating risks and reducing the efficiency of capital operation of enterprises. 4. Impact on the competitive advantage of the Vietnamese cashew industry. • China is a large consumer country, currently exempting/reducing import tax on agricultural products, including raw cashews and cashew nuts from Africa and Cambodia. • Many Chinese enterprises are investing directly in Africa and Cambodia to reduce costs and take advantage of preferential tax policies. If Vietnam applies the new 5% VAT policy, enterprises will suffer double losses in terms of costs and cash flow speed → losing competitiveness in the international market. IV. Recommendations After analyzing the above shortcomings, the Vietnam Cashew Association officially recommends: Proposing to continue applying the old VAT policy to purchased goods that are agricultural products for export, specifically: agricultural products purchased for export are not subject to tax declaration. This policy has been applied stably for many years, suitable for the characteristics of agricultural products in general and the cashew industry in particular, contributing to ensuring capital flow, reducing administrative procedures, limiting risks, and at the same time maintaining competitiveness for enterprises in the context of many fluctuations in the international market. V. CONCLUSION OF THE PRESIDING AGENCY After listening to opinions from Associations and businesses, representatives of the Tax Policy Department - Ministry of Finance have recorded all recommendations and will synthesize, report to the Minister of Finance and submit to the Government for consideration. Respectfully report!