Prime Minister Nguyen Tan Dung has approved a new tax reform strategy for 2011-2020 which aims to encourage investment by gradually reducing corporate income tax.

According to the strategy, tax polices will be created with a view to boosting investment for supporting industries and the production of high value-added products. Tax procedures will continue to be simplified.

The strategy also envisioned increasing domestic tax revenues so that they can contribute up to 70 percent to the state budget in 2015.

Vietnam was named among the most improved economies in terms of business environment, moving 10 places to number 78 in global rankings, according to a World Bank survey late last year.

However, the country was ranked 124th in the category of "paying taxes". The survey said it took businesses 941 hours per year to finish tax procedures and the total tax rate was 33.1 percent of profit.

With the new tax reform strategy, Vietnam now targets entering the top five countries in Southeast Asia in 2015 in terms of tax payment convenience.