Informal Economy Taxation in ASEAN: Equity and Inclusion Challenges

Lê Quốc Bảo (Ho Chi Minh City Open University)
Mai Trọng Nghĩa (Ho Chi Minh City Open University)

Indonesian Tax Justice Review
Vol. 2 No. 4 (2025): November, 2025

The informal economy constitutes a substantial share of economic activity in Southeast Asia. This paper compares policies toward informal sector taxation in Indonesia, Vietnam, and Cambodia. Using comparative policy analysis, the study evaluates equity implications and inclusion outcomes. The findings suggest that overly coercive formalization harms vulnerable groups, while excessive tolerance undermines fairness. The global contribution of this study lies in advancing tax justice discourse on informal economies. ASEAN experiences offer valuable insights for inclusive tax policy design in developing regions