Is there a US Vietnam tax treaty?

The short version: there is a signed text and no treaty. Americans in Vietnam are in the same position as Americans in the handful of other major economies with no US treaty, such as Brazil and Singapore.

What was signed and what happened to it

On 7 July 2015 the two governments signed an "Agreement between the United States and Vietnam with respect to taxes on income". The US Treasury still lists the text on its treaties page. A treaty only takes effect once the Senate gives its advice and consent and the two sides exchange instruments of ratification, and that never happened. The IRS list of income tax treaties in force, checked on 11 September 2026, goes from Uzbekistan to Venezuela with no Vietnam in between.

What that means if you are a US citizen in Vietnam

1. No tie-breaker. A treaty normally decides which country you are resident in when both claim you. Without one, you can be a Vietnamese tax resident (183 days, a residence card or a lease of 183 days or more) and a US taxpayer at the same time, because the US taxes citizens wherever they live.
2. No reduced withholding. Vietnamese withholding on dividends, interest or royalties from Vietnamese sources applies at domestic rates.
3. Relief comes from US domestic law. The foreign earned income exclusion lets a qualifying person exclude up to USD 132,900 of earned income for 2026 (USD 130,000 for 2025) under the physical presence or bona fide residence tests. Vietnamese income tax actually paid can be claimed as a foreign tax credit on Form 1116 instead of, or on income above, the exclusion.
4. Vietnam gives no treaty credit. Vietnam's procedure for crediting foreign tax runs through its double tax agreements, of which it has more than 80. The US is not one of them, so US tax paid is not creditable in Vietnam.

What about other nationalities?

Most nomads from Europe, Australia, Canada, the UK, Japan and Korea are covered: Vietnam has agreements with more than 80 countries and territories. To use one, a notification with a residency certificate must reach the Vietnamese tax authority 15 days before the tax payment deadline. Since 1 July 2026 (Circular 95/2026/TT-BTC) the authority also applies a substance test, so paperwork alone no longer secures treaty benefits.

Practical steps for Americans

Keep a day count, avoid leases of 183 days or more unless you accept Vietnamese residency, keep proof of Vietnamese tax paid if you do become resident, and file US returns every year regardless. The Vietnam tax guide explains the residency tests, and this is a case where a cross-border accountant earns their fee.