Jul. 2 – Vietnam’s broad application of a special tool allowed for World Trade Organization members to curb market access has hindered major foreign retail companies from entering the country, market analysts are saying.
“We talked to some international distributors who are interested in Vietnam’s market like Walmart. They said that they will only come to Vietnam when they are sure that they can open more than one store,” said Fred Burke of the consulting firm Baker & McKenzie during a retail market workshop sponsored by the National Assembly’s Economic Committee held on Tuesday.
The Economic Needs Test (ENT) Non-objective Criterion gives authorities the power to reject applications made by foreign retailers to expand and open more stores. Specifically it states: “The establishment of retail outlets outside the first retail outlet shall be considered case-by-case … [including] the sustainability of the investment project to the plans of the province or city.”
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Jul. 1 – Vietnam will exempt as much as 90 percent of tax lines on goods imported from Australia, New Zealand and Association of Southeast Asian Nations (ASEAN) members this year.
By 2017, Vietnam will remove import tariffs on butter, milk and cheese. Import duties on car components will also be slashed to 5 percent by 2018. In exchange, Australia, New Zealand and other ASEAN members will also do the same to remove at least 90 percent of tax lines. Read the rest of this entry »
Jun. 30 – The biggest casino in the country has been ordered to shut down due to permit violations.
Located in Danang, the casino is a joint-venture between U.S.-based Silver Shores and Hoang Dat of Hanoi. Hoang Dat Silver Shores International Entertainment Co. will only be allowed to reopen the casino and hotel complex after it complies to regulations. Read the rest of this entry »
Jun. 29 – Vietnam was advised to develop its industrial parks to offer more services to entice more foreign investors to come in.
According to Marc Townsend, the general director of CB Richard Ellis Vietnam, industrial parks in the country should be equipped with trade centers, offices, apartments, hotels and other logistics services in addition to production facilities. Despite charging cheaper rent for its industrial parks compared to other Asian neighbors like China, Vietnam lags behind in offering auxiliary services to support businesses. Read the rest of this entry »
Jun. 28 – French company VINCI Construction Grands Projects recently signed a memorandum of understanding with Deo Ca Investment JSC to develop the Ca Pass tunnel and road project located in the north-south corridor between Ho Chi Minh City and Hanoi.
The US$600 million project will make it safer to travel the mountain pass located in the corridor. The company will expand the road connecting the major cities by nine kilometers as well as build an 11 kilometer section that will feature one 5.5 kilometer and 0.35 kilometer tunnel, three bridges and approach roads. Read the rest of this entry »
Jun. 25 – State-owned Petrovietnam wants to attract foreign investment for 30 energy and real estate projects.
The list of projects includes the country’s third oil refinery, the Long Son oil refinery in southern Ba Ria-Vung Tau Province. The US$7 billion project is now looking for new investors after Venezuela’s state oil firm PDVSA stepped out the project. Read the rest of this entry »
Jun. 24 – An official letter released by the Ministry of Finance on June 7 provided additional guidelines on the 2009 Corporate Income Tax finalization process.
Letter 7250/BTC-TCT states that tuition fees for children of expatriates up to the high school level will be considered tax deductible as long as it meets administrative requirements. It further states that tax loss beginning in 2009 will be carried forward and offset against taxable income of a maximum of five years. Read the rest of this entry »
Jun. 23 – Authorities have released a letter clarifying the tax treatment of interest income and expense.
Letter 1713/TCT-CS provides that net interest income and net foreign exchange gains should be considered as other income. Under corporate income tax regulations, other income is meted a 25 percent tax applicable for the 2009 tax finalization. Read the rest of this entry »
Jun. 22 – The largest cold storage facility in Southeast Asia opened in Ho Chi Minh City last week to provide services to the country’s local and foreign aquaculture and food companies.
The US$28 million facility was built by U.S.-based Preferred Freezer Services as part of its strategic plans to expand into Asia in the next 36 months. Read the rest of this entry »
Jun. 21 – During the first five months of the year, the Mekong Delta region successfully lured in US$78.64 million worth of foreign direct investment (FDI) projects with US$66.44 million of funds coming from 17 new projects and the rest from existing projects.
According to the Foreign Investment Agency, the southern province of Long An was the top FDI destination with 10 projects worth US$7.89 million, at second place is Tra Vinh Province with four projects worth US$17.81 million. Read the rest of this entry »
