May 21 – Due to the enforcement of new restrictions on television in Vietnam, at least one Vietnamese TV station has responded by dropping worldwide news channels CNN and BBC. Foreign governments have already warned that various interpretations of the new restrictions could result in foreign media leaving the country altogether.
Joint venture K+ Satellite has dropped more than 20 foreign channels in Vietnam, with the only explanation provided for the downsizing by the station as “complying with regulations.” However, the company has yet to release an official statement. 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. 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. 22 – In a move to enhance Vietnam’s competitive capacity and to create additional jobs, the Vietnamese government will create a fund to assist with the development of small and medium enterprises (SMEs) in the country. The fund will officially function as a State financial organization under the management of the Ministry of Planning and Investment, and it will be responsible for not just financial support but also the management of SMEs.
The fund’s management activities will include receiving and organizing financial resources for SMEs and managing domestic and foreign trust capital to generate funds for SME development. Continue reading
Apr. 19 – The Vietnamese Ministry of Finance recently issued Circular No.38/2013/TT-BTC which amended its preferential import duties on various commodities. Currently scheduled to be implemented from May 19, 2013, the key revised preferential import duty rates can be found below.
- Commodities in the polymeric styrene category will now taxed at 5 percent (previously taxed at 3 percent);
- High impact polystyrene (HIPS) will now be taxed at 5 percent (previously taxed at 3 percent);
- Synthetic filament yarn (except sewing yarn) will now be taxed at 3 percent (previously not taxed);
- Copper-coated carbon steel wire for inflatable pneumatic rubber tires will now be taxed at 3 percent (previously not taxed); and
- Nylon-6 yarns will now be taxed at 7 percent (previously taxed at 5 percent).
Apr. 9 – The number of foreign laborers coming to Vietnam to work has steadily increased in recent years, surging to almost 80,000 workers by the end of 2011. The large majority of foreign workers that come to Vietnam are employees of foreign contractors, working for or establishing foreign direct investment (FDI) projects.
When hiring foreign staff in Vietnam, there are a number of procedures and legal frameworks that must be understood. In this article, we discuss hiring foreign staff to work in Vietnam with regards to:
Apr. 1 – The Vietnamese government has proposed amending its public private partnership (PPP) laws in order to encourage international investment in Vietnam. Under the current rules, PPP projects must fall under one of seven categories in order to qualify for funding, and projects that deal with transport infrastructure have been heavily focused.
The amendment proposes an expansion of the current PPP laws to cover new sectors including agriculture, offices, culture and the construction of markets. Other changes will result in an additional number of incentives for investors as the state is now set to cover a greater number of the costs related to project preparation and management. Continue reading
Mar. 18 – The Central Bank of Vietnam plans to infuse an additional VND30 trillion into Vietnam’s banking system in order to make further soft loans available for home-buyers. This move hopes to revive the struggling property market and resolve bad debt.
The central bank issued a circular late last week in which it clarified that banks will be providing loans at 6 percent a year to low-income home buyers, state employees and the military for at least 10 years, and to low-price property developers for five years. The circular also added that soft loans would be reserved for low-price property projects.
This plan is to take effect starting April 15, 2013. Continue reading