Dec. 29 – Businesses in Hanoi still owe more than VND4 trillion in taxes this year, and the government has urged them to pay it back.
Thai Dung Tien, deputy head of Hanoi Tax Department, said that around 86.5 percent of the taxes (VND3.5 trillion) is collectable. However, 3 percent of the money will prove difficult to collect and the status of the remaining 10.5 percent is unclear. Continue reading
By Lorenzo Martelli
Dec. 14 – Increases in the ownership ratios that foreign strategic partners can hold at Vietnamese joint stock banks, encouragement for the merger of weak banks, and not increasing the chartered capital are the main points of the European Chamber of Commerce (EuroCham)’s proposal when talking about bank restructuring.
Decree No. 69/2007/ND-CP enacted by the Prime Minister in 2007 decided to allow a strategic foreign investor to purchase from between 15 percent to 20 percent stake in a domestic bank, which, however, must not exceed 30 percent of the chartered capital of that bank. Continue reading
By Lorenzo Martelli
Nov. 16 – On November 4, 2011 the government enacted Decree 101/2011/ND-CP presenting tax incentives to help enterprises and individuals survive in the current high level of inflation in Vietnam.
According to Decree 101, corporate income tax payable by small-and-medium-sized enterprises will decline by 30 percent this year. Firms in line for tax reductions include those operating in the forestry, agricultural, textile, fisheries, leather, garment, footwear and electronic part production sectors and those contributing to socio-economic development. Continue reading
By Lorenzo Martelli
Oct. 28 – Good news for labor-intensive firms in Vietnam. Decision 54/2011/QD-TT inked by the Prime Minister last week agrees to extend corporate income tax payments in 2011 for labor-intensive companies as well as “co-operatives lawfully established and operating which have revenue from the production or processing of agricultural, wood, seafood, garment, footwear, or electronic products, or from development, construction, and installation of infrastructure works.”
In order to benefit from the tax payment deferral, labor-intensive enterprises are required to employ at least 300 workers, not counting workers with contracts of three months or less. The right to delay payment for 2011 corporate income taxes for one year takes effect from the due date this year. Continue reading
By Lorenzo Martelli
Oct. 19 – Vietnam is gradually moving away from its traditional focus areas of industrial production such as textiles, food processing, rice and coffee to attracting investment in new sectors like electronic and high-tech manufacturing, research and development.
Manufacturers are seeking alternatives along with rising labor costs in Thailand and China – Vietnam’s labor costs are 35 percent to 45 percent cheaper than those in China’s second and third-tier cities and 20 percent to 35 percent lower than Thailand’s. Moreover, preliminary findings of the 2010 Vietnam Industry Investor Survey, released a couple of weeks ago, showed that the main factors that made Vietnam an attractive country for FDI are “political stability, market and low-cost labor.” Continue reading
Oct. 17 – The new issue of Vietnam Briefing Magazine, titled Vietnam’s International Taxation Agreements, is out now.
As Vietnam increasingly finds itself on the receiving end of foreign investment and becomes progressively integrated into the global economy, the pace of changes to trade and tax policies can be difficult to keep up with. However, understanding the state’s policy objectives, and understanding the wider context of its trade policy and how it affects one’s investments, can make the difference between an investment and a lucrative investment.
In this issue, we will first look at the broader context of global trade and the growing salience of free trade agreements (FTAs) between Vietnam and its trade partners. We will examine the effects of current FTAs on Vietnam’s exports, the advantages and disadvantages thus far, as well as the response of Vietnamese enterprises to the policies of the FTAs in effect. Also, an in-depth look at key bilateral and regional trade agreements will reveal some telling trends. Continue reading
Sept. 15 – According to the information provided by the Ministry of Finance (MoF), domestic merchants providing petrol to manufacturers at open economic and cross-border industrial zones will be subject to temporary import and re-export laws.
All fuel-trading activities between traders and producers will be to operate in accordance with General Department of Customs procedures. Continue reading
By Francesca Grassi
Sept. 14 – The State Bank of Vietnam (SBV) has recently elaborated a (third) “Draft Decree” regulating foreign shares in Vietnamese commercial banks: if the new guidelines receive the placet of the government, Decree 69/07 ND-CP (dated April 20, 2007) on foreign investors’ acquisition of shares in Vietnamese institutions will be superseded and current legislation on credit institutions and on enterprises will inevitably be shattered.
In particular, the SBV Draft Decree introduces debatable core “novelties” affecting regulations on:
By Francesca Grassi
Sept. 7 – On June 17 of this year, the Vietnamese government issued Decree n.46/2011/ND-CP (effective from August 1, 2011) amending and supplementing Decree n.34/2008/ND-CP dated March 25, 2008 on the employment and administration of foreigners working in Vietnam.
The new legislation aims at improving the ineffective implementation of foreign labor regulations with strong regard to the working permit requisite.
In fact, the newly called “expats” (foreigners) are entitled to work in Vietnam if they meet all profile requirements listed in Article 3 paragraphs 1, 2, 3 and 4. Namely, the individual is a minimum 18 years of age; in good health; holds a manager, director or expert position; and has no criminal record for national security offense. Continue reading
By Bich Lien
Aug. 25 – On August 4, 2011, Vietnam’s Ministry of Finance promulgated Circular No.113/2011/TT-BTC amending and supplementing the guidance of the PIT Law mentioned in the Circular No.62/2009/TT-BTC dated March 27, 2009, Circular No.02/2010/TT-BTC dated January 11, 2010, and Circular No.12/2011/TT-BTC dated January 26, 2011.
Accordingly, organizations and individuals who pay commission to goods sale agents, salaries, wages, remuneration or other sums of money to individuals performing services with total income of VND1,000,000 or more each time shall deduct PIT before paying incomes to these individuals (in previous regulations, performing services with total income of VND 500,000 or more each time will be subject to such PIT deductions) as per below tariff: Continue reading
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