Legal and Regulatory

Business Registration Set to be Streamlined in Mid-2012

Dec. 20 – The Ministry of Planning and Investment (MPI) of Vietnam has recently drafted a circular pertaining to an online registration initiative for start-up businesses that aim to streamline the establishment process.

According to the draft circular, the Business Registration Management Agency will be responsible for the portal www.dangkykinhdoanh.gov.vn, which provides online registration and other basic registration services for managing national business registrations. To avoid confusion, all other websites launched by businesses or organizations for the same purpose will be blacklisted. Continue reading →

Lower Rent for Manufacturers and Environmental Tax Exemptions

By Lorenzo Martelli

Manufacturers benefit from lower rent
Dec. 7 – On November 23, the Vietnamese Government issued Decision No. 2093/QD-TTg to reduce businesses’ land use rental costs for 2011 and 2012. A 50 percent reduction in rentals for leased land will be enjoyed by firms conducting manufacturing businesses. According to calculations, under Decree No. 121/2010/ND-CP, the rental fee is paid annually. However, reductions can be applied under some circumstances only. The land rent charge is reduced when such entities:

Have the proper and lawful use of the leased land;
Have been subject to statutory increases in land rent charges at least twice in 2010. Continue reading →

Posted in Business, FDI and Foreign Trade, Legal and Regulatory, Regulatory Update | Tagged Vietnam Environmental Tax, Vietnam Incentives, Vietnam Overheads, Vietnam Rent, Vietnam Tax, Vietnam Tax Exemptions | Leave a comment

Vietnam to Cut Income Tax By 30% for Small Business

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 →

Posted in Business, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update | Tagged Vietnam Legal, Vietnam PIT, Vietnam Tax, Vietnam Tax Incentives, Vietnam VAT | Leave a comment

Vietnam’s National Assembly Approves 2012 Salary Increases

Nov. 15 – On November 10, the Vietnamese National Assembly approved VND59.3 trillion (US$2.83 billion) in salary increases starting from May 1, 2012.

Under the recent resolution, minimum salaries for state employees will be increased to VND1.05 million (US$51) per month. The current minimum wage for state employees is VND830,000 (US$40), established by Decree No. 22/2011/ND-CP dated April 04, 2011 with an implementation date of May 1, 2011 and it is still in force. Continue reading →

Posted in Business, Hanoi, Legal and Regulatory | Tagged Vietnam HR, Vietnam Labor, Vietnam Minimum Wages, Vietnam Overheads, Vietnam Salary | Leave a comment

Corporate Income Tax Delayed One Year For Labor-Intensive Enterprises

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 →

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update | Tagged Vietnam FDI, Vietnam Incentives, Vietnam Labor, Vietnam Ministry of Finance, Vietnam Regulatory, Vietnam Regulatory Update, Vietnam Tax | Leave a comment

Vietnam Seeing an Industrial ‘Renaissance’

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 →

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting, Legal and Regulatory | Tagged Foreign Direct Investment, Vietnam FDI, Vietnam Industry, Vietnam Manufacturing, Vietnam Trade | Leave a comment

New Regulation to Improve FDI Quality in Vietnam

Vietnam determined to improve the quality of foreign direct investment

Oct. 7 – Over the last few years, Vietnam has emerged as an important destination to invest in for foreign companies. In 2009, the government issued a resolution titled Decision 129/2009/QD-TTg (“Decision”) aimed at attracting and managing FDI. The Decision’s goal was to build and complete a system of comprehensive, specific and uniform mechanisms and policies on land, finance, investment capital, human resources, science and technology to promote investment in, and ensure the achievement of the set targets for, natural resource and environmental protection and sustainable development. However the Decision didn’t reach the goal. Continue reading →

Posted in Business, FDI and Foreign Trade, Legal and Regulatory | Leave a comment

Vietnam Raises Ceiling for Minimum Wage Levels

By Francesca Grassi

Sept. 27 – On October 5, 2011, new Decree no.70/2011/ND-CP on region-based minimum wage levels will come into force in Vietnam bringing in eloquent changes and a step forward from previous Decree no.107/2010/ND-CP and Decree no.108/2010/ND-CP.

The regulation is effectively structured in order to provide companies with exact information about the applicability and scope of the Decree, the amended minimum wage levels, and their application. Continue reading →

Posted in Business, Economy and Politics, Legal and Regulatory | Leave a comment

Vietnam Introduces Favorable Policies for Supporting Industries

By Stefano Miggiano

Sept. 22 – On February 24, 2011, the Vietnamese government issued Decision No.12/2011/QT-TTg pursuant to the Prime Minister’s Decision No. 49 10/QT-TTg of July 19, 2010, approving the list of prioritized high technologies. The Decision took effect on April 15, 2011.

The new regulations aspire to encourage the development of the following industries: manufacturing mechanical engineering, electronics-informatics, manufacturing and assembly of automobiles, textile and garment, leather-footwear and high-tech industry development. Continue reading →

Posted in Automotive, Business, FDI and Foreign Trade, IT & Telecom, Legal and Regulatory, Manufacturing, Regulatory Update | Leave a comment

Vietnam to Implement Single Window Customs Mechanism

Sept. 19 – Prime Minister Nguyen Tan Dung has decided to simplify procedures concerning exporting, importing, and transiting goods and means of transport in the period 2011- 2014 by implementing the “National Single Window Customs Mechanism” pilot program.

The new system will allow all stakeholders involved in importation and exportation to submit or send standardized information and documents to the single processing unit. New regulations should significantly shorten the time needed for required formalities. Continue reading →

Posted in FDI and Foreign Trade, Legal and Regulatory | Leave a comment