Business

Vietnam to Extend CIT Payments for SMEs by 3 Months

By Tran Que Chi

Feb. 13 – On January 19, 2012 the Prime Minister enacted Decision No. 04/2012/QĐ-TTg – granting a three-month extension for the payment of corporate income tax which small and medium enterprises, and enterprise using many laborers, must pay for the first and second quarters of 2011.

According to Decision No. 04, enterprises which were extended tax payments according to Decision No. 21/20111/QD-TTg dated April 6, 2011 and Decision No. 54/2011/QĐ-TTg dated October 11, 2011 will be granted extensions to pay corporate income tax for three more months. Continue reading →

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Vietnam’s Nghe An Province Looking for Investors

Feb. 9 – For the fourth time, Vietnam’s Nghe An Province recently organized a conference to show and present its potential as a location for new investment projects.

Ho Duc Phoc, chairman of the Nghe An Provincial People’s Committee, explained that in the last few years the province has increased its efforts to attract new investors and to boost the settlement of production plants and other business activities in the area. Continue reading →

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New Issue of Vietnam Briefing: 100% FOEs, JVs and the Promotion of Supporting Industries

Jan. 17 – The new issue of Vietnam Briefing Magazine, titled 100% FOEs, JVs and the Promotion of Supporting Industries, is out now and is immediately available as a complimentary PDF download on the Asia Briefing Bookstore.

For investors looking to make forays into Vietnam, choosing between a wholly foreign-owned enterprise (100 percent FOE) and a joint venture (JV) can have significant implications, as both have their pros and cons and the permissible establishment details (such as percent of foreign capital contributions) for each vary by sector.

As 2012 will be a year of significant change in limitations on foreign ownership regulations for 100 percent FOEs and JVs, this issue offers a clear snapshot of up-to-date regulations and specific changes to expect in 2012, as well as a useful summary of tax incentives and exemptions. Also, a roadmap and timeline for licensing procedures take the guesswork out of this initial step in establishing a business in Vietnam. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Featured, Markets | Tagged Vietnam Briefing Magazine, Vietnam Establishment, Vietnam FDI, Vietnam FOEs, Vietnam JVs | Leave a comment

Exporters Urged to Increase Focus on Germany

Dec. 29 – There is still much potential in the German market for Vietnamese exporters to explore, said participants in a conference held in Ho Chi Minh City on Tuesday.

While Germany has grown into one of Vietnam’s major trading partners since 2007, the current export volume to the European country is still modest compared to the volume of export to China, Thailand and India, noted Do Thang Hai, director of the Trade Promotion Agency at the Ministry of Industry and Trade (MIT). Continue reading →

Posted in Business, FDI and Foreign Trade, Ho Chi Minh City | Tagged Vietnam Export, Vietnam Germany Trade | Leave a comment

Businesses in Hanoi Asked to Pay VND4 Trillion in Tax Due

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 →

Posted in Business, Finance, Tax and Accounting, Hanoi | Leave a comment

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 →

Posted in Business, Legal and Regulatory, Regulatory Update | Tagged Vietnam Business Online Registration, Vietnam Business Registration Management Agency, Vietnam Corporate Tax Registration | Leave a comment

Vietnam Briefing Now Accessible in Mobile App

Free App Brings Vietnam Briefing to Your Fingertips

Dec. 16 – The brand new Asia Briefing mobile application brings the latest business news and foreign investment insights from Vietnam Briefing web site right to your fingertips.

The free app integrates with legal and tax regulatory updates from Dezan Shira & Associates, along with China, India, Russia, Mongolia Briefings, and 2point6billon.com (for emerging Asia). With hourly updates, it helps you stay on top of Asia’s dynamic investment environments. Continue reading →

Posted in Business, IT & Telecom | Tagged Asia Briefing Mobile App, Vietnam Briefing Android, Vietnam Briefing Blackberry, Vietnam Briefing iPad, Vietnam Briefing iPhone | Leave a comment

Vietnam’s Bank Restructuring a Big Opportunity for Foreign Investors

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 →

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting | Tagged Eurocham, Vietnam Banking, Vietnam FDI, Vietnam Finance, Vietnam Regulatory | Leave a comment

Vietnam Drawing Increasing Interest from Italian Investors

Dec. 8 – Trade and investment between Italy and Vietnam has increased steadily over the last 10 years. According to statistics issued by the Government of Vietnam, Italian FDI projects amounted to US$187 million in 39 projects at the end of 2010. The manufacturing industry still has the biggest share amid Italian FDI, even though other sectors are increasingly showing their interest in the market.

In the wake of a recent successful business mission by 24 Tuscan wineries to Vietnam at the beginning of November, Damiano Francovigh, head of the Economics and Commercial Section of the Italian embassy in Vietnam, shares his vision of the potential cooperation between the two countries. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade | Tagged Italian Trade Commission, Vietnam FDI, Vietnam FDI Attraction, Vietnam Foreign Trade, Vietnam Wine Market, Vietnam-Italian Trade | Leave a comment

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 →