May 10 – The residents of Phan Thiet City in Vietnam’s central Binh Thuan province can soon expect an influx of tourists as a new airport is built in the area, scheduled for opening in 2017. Plans for the airport have already been submitted to the central government for approval.
The airport, which reportedly will cost over VND5.6 trillion (US$265 million) to build, and which will span around 500 hectares (1235 acres), will be located in Thien Nghiep – a coastal area near Mui Ne Beach.
Initially, its facilities and landing areas will only be able to accommodate smaller planes and helicopters, providing services to over 500,000 passengers annually. Also, it is expected to offer 12 air routes of distances under 800 kilometers (500 miles) on top of 12 services of distances below 2,000 kilometers (1,200 miles). Continue reading
May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.
The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue reading
May 9 – After a 15-month hiatus, Vietnamese produce exporters are now allowed to resume shipments of fruits and vegetables to the European Union (EU) after Vietnam’s plant protection department agreed to re-issue quarantine certificates.
Exports will resume as normal starting June 30.
Vietnam’s plant protection department stopped issuing certificates in March 2012 in an effort to prevent certain exported fruit (such as blue dragon or grapefruit) from being added to the EU’s blacklist after Vietnamese basil, sweet pepper, celery, bitter gourd and coriander failed to meet the EU’s food hygiene and safety regulations. The EU threatened to ban all Vietnamese produce if they found five more batches that were in violation of their regulations. 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
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
By Nguyen Huyen My
Mar. 7 – In 2010 and 2011, the Vietnamese Government issued a number of policies to encourage supporting industries, especially those connected to the high-tech sectors (Prime Minister’s Decision No 12/2011/QD-TTg).
Supporting industries play a key role in promoting the development of Vietnam’s main industries. Furthermore, the potential to develop Vietnam’s service industries is great as it has abundant a labor supply and a strong capacity to absorb and incorporate new technologies.
Strengthening service industries will also reduce the number of imports of any necessary industry products (Vietnam’s imports have outnumbered its exports in recent years, which has been a major factor in Vietnam’s current trade imbalance).
Specifically, the Government aims to develop the following supporting industries: Continue reading
Mar. 6 – The second issue of our new issue Asia Briefing Magazine, titled Expanding Your China Business to India and Vietnam, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of March and April.
As operational costs in China continue to rise, an increasing number of companies are looking at either relocating or moving part of their China-based facilities to lower cost markets elsewhere in emerging Asia. This makes sense since China itself is trying to move away from an export-driven economy and into a consumption-driven growth model.
Meanwhile, countries such as Vietnam are actively courting these export businesses through tax incentives and preferential policies similar to those that helped China get to where it is today. India, too, with its abundant, young and inexpensive workforce, coupled with a massive consumer market, is looking strikingly similar to China 20 years back. Continue reading
By Marco Azzaro
May 18 – Several franchising brands are beginning to view the Vietnamese market more favorably than in past years. According to the country’s Ministry of Industry and Trade, up to 70 foreign brands have registered their franchising business in Vietnam and franchising growth is up 30 percent.
Most of them are consumer brands focused on youth and middle class consumers. Brands such as KFC, Pizza Hut, Lotteria, and Jollibee have been pioneers in the Vietnamese market, but other well-known fast food brands from the United States – such as McDonald’s, Starbucks, Focus Brands and Melting Pot – are reportedly seeking a way into Vietnam or looking for suitable Vietnamese partners. Continue reading
Apr. 30 – On April 12, 2012, Vietnam’s Ministry of Finance promulgated Circular No.58/2012/TT-BTC to guide the implementation of Decision No. 05/2012/QD-TTg dated January 19, 2012 on implementing a pilot project allowing VAT refunds for foreigners departing Vietnam from Noi Bai International Airport in Hanoi or Tan Son Nhat International Airport in HCMC.
Foreigners who buy goods in Vietnam and leave from either of those airports will be reimbursed the VAT they have paid. However, the tax refund service fee which commercial banks are entitled to charge is equal to 15 percent of the total amount of VAT on goods eligible for refund that foreigners carry when leaving the airports. As such, the amount of value added tax which foreigners will be refunded is equal to 85 percent of the total amount of VAT paid. Continue reading
Posted in Business, Finance, Tax and Accounting, Hanoi, Ho Chi Minh City, Retail
Tagged Hanoi, HCMC, Value-Added Tax, VAT, Vietnam Tax, Vietnam Tourism
By Mattia Capsoni
Mar. 13 – In recent years, Vietnam’s real estate market has shown considerable strength and a propensity for growth.
“[The real estate market] has contributed an important part to ensuring economic growth and social security, but besides the positive results there remain a number of weak points,” Minister of Construction Nguyen Hong Quan said in an interview with VnEconomy News. Continue reading