Legal and Regulatory

Vietnam’s MoF Targets FIEs in New Tax Inspection Plan

Apr. 13 – Vietnam’s Ministry of Finance has set up an important tax inspection plan for the year 2011. The objective of the plan is to ensure that enterprises do not commit any tax law violations in Vietnam and might allow to collect tax arrears and to uncover transfer pricing cases.

These inspections will focus on 82 enterprises across Vietnam, including 19 in the capital and 21 in Ho Chi Minh City. Among others, many foreign invested enterprises (FIEs) will receive visits from inspection teams. Continue reading →

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Higher Fuel Prices Proposed to Combat Smuggling

Mar. 24 – Oil companies and authorities in the southern provinces have recommended that fuel prices be raised in Vietnam to combat smuggling into neighboring Cambodia, where fuel is much more expensive.

The Ministry of Industry and Trade said A92 gasoline in Vietnam is VND19,300 per liter, while the price in Cambodia hovers around VND24,000. Continue reading →

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New Changes in Vietnam May Affect Foreign Investors

New rules outline ratio of charter capital in SOEs

Mar. 23 – In newly-signed decision 14/2011/QDTTg, Vietnam’s government will limit its holdings of 50 percent of the charter capital of power production companies that are bigger than 500 megawatts.

The state will continue to hold 100 percent of the charter capital in businesses involved in defense and strategic industries, as well as in infrastructure systems such as railways, airports, and important seaports and television stations. Continue reading →

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Vietnam to Cut Import Duties to 15 Percent

Mar. 15 – Vietnam’s Finance Ministry plans to cut import duties to 15 percent in April. Currently, the tariff on refined sugar is 40 percent, while raw sugar is taxed at 25 percent.

The cuts will help keep prices stable, according to statements made by the finance ministry. However, the Ministry of Industry has set import quotas at 250,000 tons total for both raw and refined sugar, compared to the 300,000 tons of sugar that was allowed to be imported in 2010. Both import quotas and import duties exert the same upward pressure on the price of imports. Continue reading →

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Vietnam’s MOF to Update Finance and Real Estate Regulatory Frameworks

Feb. 28 – Vietnam’s finance and real estate regulatory frameworks are set to undergo changes in the coming months, according to the Ministry of Finance.

New amendments to securities regulations to come into effect in July will allow companies and investors to negotiate investments in terms of cash or assets, contingent upon the mutual approval of contracts and price agreements by both parties. Continue reading →

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Vietnam to Raise Power Prices by 15%

Feb. 22 – Vietnam recently announced that the government has decided to raise the country’s power price by a record 15.3 percent, up from the current VND1,077 per kw/h to VND1,241 per kw/h, starting March 1, 2011.

The government said it had made the price hike as small as possible after considering both the cost factor in production and the impact on people’s living standards. Although the price growth rate this time almost doubled compared to last year’s 8.9 percent, it did not meet the 18 percent to 30.3 percent increase goal the Ministry of Industry and Trade (MIT) set. Continue reading →

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Updated Rules for Small Business Loans to Take Effect February 25

Feb. 17 – The Prime Minister issued decision 03-2011-QD-TTg on January 10, regulating loan guarantees for small and medium-sized enterprises (SMEs). The decision attempts to standardize procedures for the Vietnam Development Bank to issue guarantees for commercial bank loans to SMEs. Continue reading →

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Vietnam Amends VAT Regulations for SMEs

Jan. 25 – Vietnam’s government recently approved a proposal to extend the declaration time of value added tax (VAT) for small and medium enterprises (SMEs) and family businesses, removing cumbersome elements of the country’s tax code for emerging entrepreneurs.

Under Resolution 68/NQ-CP, which takes effect this month, SMEs will only need to declare VAT every quarter. Family-run businesses will need to declare their VAT dues biannually. Previously, companies of both categories had to declare VAT every month. Continue reading →

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Vietnam Lowers Import Duties on Petroleum Products

Jan. 19 – Vietnam’s Ministry of Finance lowered import duties for petroleum products from January 14 onwards, according to the ministry’s web site.

The import tax for gasoline was cut to 0 percent from 6 percent, and the tax on diesel was decreased to 0 percent from 2 percent. The tax on kerosene was reduced to 2 percent from 6 percent, and on mazut from 5 percent to 2 percent. Continue reading →

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Fuel Firms in Vietnam Allowed to Withdraw from Price Stabilization Fund to Prevent Further Price Increases

Jan. 17 – The Vietnamese Finance Ministry is permitting domestic fuel traders to withdraw money from the national price stabilization fund to offset the increasingly high price vendors are paying for imported oil. The vendors have been told to keep prices stable.

Since November 2010, domestic companies selling fuel have taken VND1,200 (US$.06) from the fund for every liter of gas and kerosene sold and VND1,000 (US$.05) for every liter of diesel sold. Continue reading →

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