Aug. 23 – Vietnam’s first trade policy review (TPR) is set for 2012 following the requirements of its membership in the World Trade Organization.
The Ministry of Industry and Trade announced the schedule of the TPR during a seminar held in Hanoi on August 12. WTO members are all required to conduct regular TPRs and this will be a chance for Vietnam to evaluate the benefits of its membership since joining the WTO in 2007. Continue reading
Aug. 20 – Following Government Decree 87/2010/ND-CP, Vietnam will exempt export and import express packages from tax beginning October 1.
The decree will also waive tax on imported raw materials or appliances for specific investment sectors or those not made in the country five years after production date. Continue reading
Aug. 19 – Tax authorities clarified in June that corporate income tax incentives shall not apply to new business activities after a foreign company has already been granted an investment certificate.
Official Letter 2057 says a foreign invested company that decides to offer business activities in addition to the activities stated on its investment certificate shall be considered as expanding its business. The new activity will not be qualified for CIT incentives but will be charged a 25 percent tax. Continue reading
Aug. 18 – Vietnam’s currency, the dong, dropped a further 1.1 percent to VND19,320 against the U.S. dollar from VND19,425 earlier as part of government efforts to rally economic growth and increase exports, said economists.
Yesterday, the central bank let the dong’s daily reference rate slip by 2 percent to VND18,932 per dollar. “The main reason for the central bank’s move is to balance onshore foreign-exchange demand-and-supply and to support exporters,” said Prakriti Sofat, a Singapore-based economist at Barclays Capital. “Vietnam largely exports low value- added goods and typically competes on prices.” Continue reading
Aug. 17 – Beverage and food giant PepsiCo Asia is committing to invest US$250 million in Vietnam to upgrade its manufacturing capacity in the next three years.
The company says it will also develop new products for the market. PepsiCo has new facilities in Binh Duong and Can Tho. Global multinational companies are expanding operations in emerging markets as a way of coping with slower demand in the United States and Europe. Continue reading
Aug. 11 – Taiwanese companies have become Vietnam’s second largest source of foreign direct investment so far with an estimated US$22.58 billion worth of projects in Vietnam, according to the Ministry of Planning and Investment.
The top Taiwanese firms investing in the country include the biggest contract manufacturer of notebook PCs, Compal Electronics Inc., and the biggest electronics provider, Foxconn Group. From January to July, Taiwanese companies committed to investing a total of US$939.9 million, making the region the fifth largest foreign investor in Vietnam.
Aug. 4 – The government has just approved development plans for the Cau Treo Border Gate Economic Zone in central Vietnam’s Ha Tinh Province that will last until 2025.
In February, the zone was allowed to exempt goods from import tariffs – specifically materials, equipment and unfinished products imported for production and installation in the area. The tax exemption is valid for five years beginning March. Development plans for the zone will involve dividing it into specialized areas that include urban, residential, industrial, farming, tourist sites, ecological parks, and sporting facilities. Continue reading
Jul. 23 – Economic and industrial zones investments in Ho Chi Minh City rose by 176 percent during the first half of the year reaching US$320 million.
More than 70 percent of investments made in the zones, approximately US$225 million, came from local investments. Companies located in the zones reported a total export turnover worth US$1.6 billion, an estimated 34 percent increase compared to the previous year. Continue reading
Jul. 20 – Vietnamese exporters may face tougher restrictions this year as countries employ trade remedies to address anti-dumping and countervailing issues on items produced by importing countries according to trade experts.
Vietnam’s top export goods like garments, steel, woodwork and handicrafts are at risk when stricter import regulations are imposed.
“In addition to remedies relating to product quality, subsidies to export industrial products, and food hygiene, regulations on goods’ origin and environmental standards are increasing and getting stricter,” said Phan The Rue, the former industry and trade deputy minister. Continue reading
Jul. 5 – The Netherlands topped the list as Vietnam’s largest foreign investor from January to June this year at US$2.2 billion worth of investment.
During that time, 438 foreign-invested projects were licensed amounting to US$7.9 billion while 121 existing projects were allowed to bring in more funding worth US$525 million. The Netherlands was followed by South Korea with US$1.6 billion, Japan with US$1.2 billion and the United States with US$991.5 million. Continue reading
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