South Korea and Vietnam have concluded negotiations for a bilateral free trade agreement (FTA) at a signing ceremony in Busan witnessed by Vietnamese Prime Minister Nguyen Tan Dung and South Korean President Park Geun-hye. The FTA will remove import tariffs on more than 90 percent of all products.
Paying Personal Income Tax (PIT) is one of the key financial obligations that employers and employees have in Vietnam. In this article, we attempt to clarify some of the key regulations and tax rates involved with the payment of PIT.
Foreign exchange control is a paramount concern of all foreign investors entering into Vietnam, as regulations on capital inflows and outflows have a great influence on operations and profit. These transactions include transferring capital into and out of the country, opening and using bank accounts, borrowing foreign loans and paying foreign debts, dealing with currency exchanges, government reporting, and handling violations.
Global coffee demand is expected to increase over the next year, however production in Vietnam, the world’s second largest producer of robusta beans, is forecast to decline due to factors such as inclement weather, aging trees, lack of moisture, and disease. Additionally, many Vietnamese farmers have been holding back their crops from the market as a way to further increase prices.
The Vietnamese government has issued a decree to increase the country’s minimum salary by between VND250,000-VND400,000 (US$12-$19) starting January 1, 2015. This will bring the wage floor to between VND2.15 million-VND3.1 million ($101.4-$146.2) depending on the region.