Recent high-level government meetings have confirmed that Vietnam and the United States are continuing to strengthen their bilateral relations. Among the important agreements are trade deals such as the Trans-Pacific Partnership (TPP) and the removal of a US arms embargo. In 2015, the two countries will celebrate their 20th anniversary of normalized bilateral relations.
Two recent important meetings between the two nations have included Pham Binh Minh’s, Vietnam’s Deputy Prime Minister, recent trip to the US and Michael Froman’s, a US Trade Representative, trip to Vietnam.
Vietnam has issued amendments to certain provisions related to the country’s corporate income tax (CIT) and value-added tax (VAT). The changes have been laid out in Decree 91/2014/ND-CP and will become effective on October 15, 2014.
Intellectual property (IP) is a key concern for every business, no matter where they are operating. This is no less true in Vietnam – while the country has signed onto numerous IP conventions, there are still many reasons for foreign companies operating there to keep a close eye out for IP violations. Therefore, it is crucial that foreign investors have a clear understanding of how IP operates in Vietnam and what possible recourses are available should they find themselves dealing with a violation of their property.
The Vietnam Automobile Manufacturers’ Association (VAMA) has announced that August was the 17th consecutive month of auto sales growth within the country. The month saw a 59 percent year on year increase, with total sales of 12,562 units. Total sales for 2014 are now forecast to be 130,000 units, representing an 18 percent growth year on year.
Once a company has gone through all the legal procedures required for the establishment of their business in Vietnam, the next big hurdle is the process of actually hiring the staff that will be needed and dealing with the associated payroll obligations. Hiring, and the associated legal obligations that go along with it, can be a confusing process. It is therefore strongly recommended that businesses take a careful look at all relevant regulation and engage a professional where appropriate to ensure proper compliance with all laws.