May 16 – Construction began last month on four main roads in the Thu Thiem New Urban Area, a development located near the heart of Ho Chi Minh City (HCMC).

Construction of the Thu Thiem New Urban Area has been steady, with 99 percent of the seven square kilometer area already cleared, with the adjacent Thu Thiem tunnel and bridge already having been completed. Construction is currently expected to be completed by 2025, with its developers promoting the area as the future financial and cultural hub of Vietnam and Southeast Asia.

Economic recession, however, has slowed the development of other key infrastructure projects in the area. At the Conference on Investment Promotion held earlier this month, investors voiced their concerns, citing worries over the slow infrastructure development in addition to the high land prices and restrictive administrative regulations. Continue Reading

May 16 – With regard to international trade, the various countries’ tax systems oftentimes put global investors in the unfavorable position of having to face redundant taxes on their income —i.e., double taxes . For example, a company may be subject to taxes in its country of residence and also in the countries where it raises income through foreign investments for the provision of goods and services.

It is therefore extremely worthwhile for foreign investors to be aware of the existing Double Taxation Avoidance Agreements (DTAAs) between Vietnam and various foreign countries, as well as how these agreements are applied. These treaties effectively eliminate double taxation through identifying exemptions or reducing the amount of taxes payable in Vietnam.

For access to a resource library of Vietnam’s current trade agreements, including DTAAs and bilateral investment treaties, please see here. Continue Reading

May 15 – On April 22, 2013, the Vietnamese Ministry of Industry and Trade issued Circular No. 08/2013/TT-BCT (hereinafter referred to as “Circular 08″) regarding the activities of selling goods and related activities by foreign invested enterprises (FIEs) in Vietnam.

Circular 08 will replace Circular 09/2007/TT-BTM and Circular 05/2008/TT-BCT, which are dated July 17, 2007 and April 14, 2008 respectively. Continue Reading

May 10 – The residents of Phan Thiet City in Vietnam’s central Binh Thuan province can soon expect an influx of tourists as a new airport is built in the area, scheduled for opening in 2017. Plans for the airport have already been submitted to the central government for approval.

The airport, which reportedly will cost over VND5.6 trillion (US$265 million) to build, and which will span around 500 hectares (1235 acres), will be located in Thien Nghiep – a coastal area near Mui Ne Beach. 

Initially, its facilities and landing areas will only be able to accommodate smaller planes and helicopters, providing services to over 500,000 passengers annually. Also, it is expected to offer 12 air routes of distances under 800 kilometers (500 miles) on top of 12 services of distances below 2,000 kilometers (1,200 miles). Continue Reading

May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.

The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue Reading

May 9 – After a 15-month hiatus, Vietnamese produce exporters are now allowed to resume shipments of fruits and vegetables to the European Union (EU) after Vietnam’s plant protection department agreed to re-issue quarantine certificates.

Exports will resume as normal starting June 30.

Vietnam’s plant protection department stopped issuing certificates in March 2012 in an effort to prevent certain exported fruit (such as blue dragon or grapefruit) from being added to the EU’s blacklist after Vietnamese basil, sweet pepper, celery, bitter gourd and coriander failed to meet the EU’s food hygiene and safety regulations. The EU threatened to ban all Vietnamese produce if they found five more batches that were in violation of their regulations. Continue Reading

May 7 – The Red River Delta constitutes the industrial heart of Vietnam and is one of the richest and most developed regions in the country.

Hanoi, Vietnam’s capital city, dominates in terms of foreign investment and gross industrial output. It is also home to many manufacturing plants for big international names like GM, Nokia and Yamaha. The industrial parks and economic zones in the region are strengthened by their “corridor to the sea” via the Hai Phong Port, one of Vietnam’s largest ports. Continue Reading

May. 3 – Following the relevant customs procedures when importing or exporting goods from Vietnam is one of the most vital aspects of doing business in a country where manufacturing costs are leveraged to its favor. Goods to be imported or exported are subject to the relevant customs clearance standards, which effectively check the quality, specifications, quantity and volume of the goods.

Following the standards set by the Vietnamese government, certain imported goods are subject to inspection. For example, imported pharmaceuticals must undergo testing and also include documents detailing product use, dosage and expiration dates (written in Vietnamese), which must also be included in or on the product packaging. Continue Reading

May. 2 -The Vietnamese government is set to approve a decree that will officially establish a national asset management company to help with the resolution of bad debts in the country. The company has already received the Politburo’s in-principle approval.

The central bank has submitted its detailed plans for the company, which will be called the Vietnam Asset Management Company (VAMC). It is yet to specify when the company will be established.

The state-run VAMC, under the State Bank of Vietnam’s (SBV) management, will help banks and enterprises deal with their bad debts. The VAMC will play an important role in controlling bad debts – which are the main culprit for the banking system’s weak liquidity. Continue Reading

Apr. 30 – Vietnam’s online national business registration platform, which will allow enterprises to register online and be able to verify the legitimacy of potential business partners and companies, will be fully completed by the end of this year. This new system is designed to reduce the risk of doing business in Vietnam. Le Quang Manh, the head of the Ministry of Planning and Investment’s Business Registration Agency, stated that in cooperation with the provincial offices, all information will be updated and placed onto the national business registration system this year. Continue Reading