Oct. 14 – Vietnamese garment makers are further intensifying their competition with Bangladesh as it seeks to take an even larger portion of the global clothing market thanks to being on the cusp of being placed within the U.S.-based generalized system of preferences (GSP).
Specifically, the GSP is a trade privilege scheme which has been described by the Office of the United States Trade Representative as “a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 products when imported from one of 127 designated beneficiary countries and territories.” Continue reading
Sept. 4 – A number of Asian firms have begun to eye Vietnam as a potential “Blue Ocean” market thanks to the country’s emerging retail sector and the annual growth rate of its consumer goods trade (which hovers around 23 percent).
Vietnam’s growth is much higher in comparison to the growth rates throughout the rest of the Asia-Pacific region, which currently top out at around 12-15 percent.
Vietnam, a relatively large market of around 90 million people – the majority of which is made up of young consumers – currently has no major players in the retail sector. The largest retail chain in the country is called Shop & Go, which only has a total of 70 stores throughout the entire country. 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
An investor who visits the Megastar Cinema in Vincom City Tower in Hanoi will likely be met by large crowds. A visit to the West Lake, passing through the Ho Tay water park, will generate a similar experience.
By Jonathan Choppin
Jul. 12 – The entertainment industry in Vietnam is showing increasing potential and positive indicators like growing cinema audiences and an increasing number of karaoke venues, western-style bars and nightclubs. Much of this industry’s growth, which tripled in value between 2004 and 2009, can be attributed to the country’s stable economy. On the whole, the entertainment industry will play an important role in Vietnam’s economy through jump starting investment in infrastructure and providing sources of employment. Continue reading
Sept. 24 – The Vietnam Competition Authority and and the Global Competition Fund of Denmark launched an early warning web site on Wednesday to help prevent anti-dumping cases and support exporters in Vietnam.
The web site is available in Vietnamese and English and initially concentrates on the Vietnam’s top export products: garments and textiles, footwear, seafood, wood products and electric cables for the U.S. and EU markets. Continue reading
Aug. 25 – Vietnam’s Ministry of Industry and Trade and the Ministry of Information and Communications encouraged the use of digital signatures for government agencies and companies during a workshop held in Ho Chi Minh City on Tuesday.
The use of digital signature will pave the way for the development of electronic commerce in the country. “One of the solutions to ensure data security in e-transactions is the use of digital signatures,” said Tran Huu Linh, deputy head of the Department of Commerce and Information and Technology. 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