Other Briefings
HCMC Zone Officials to Handle Environmental Regulation
Feb. 1 – Ho Chi Minh City industrial zone officials may soon be able to assess and ratify the environmental impact of new projects as they push for the authority to act as environmental regulators.
Currently, the Department of Natural Resources and Environment acts as an environmental regulator for new investments. Ngo Anh Tuan, deputy head of the HCMC Export Processing and Industrial Zones Authority, told Thanh Nien News that his agency would send a request to the city's People’s Committee.
Vietnam to Offer Discounts and Extension on Taxes to Boost Growth
Jan. 24 – Vietnam will offer discounted rates on value-added tax plus cut export tariffs for rice, fertilizer and copper ore in addition to extending deadlines for tax payments as a way of easing burden on companies coping with the global slowdown.
According to Thanh Nien News, there will be a 50 percent tax reduction on cars, ships, coal, chemicals, tires, engineering equipment, cement structures, automatic data-processing machines and precious stones. The reduction measures is expected to boost production and exports as the economic crisis deepens.
In 2008, Vietnam’s economy grew by 6.2 percent, the lowest figure in nine years. The government is looking at 6.5 percent growth for 2009. Hotels, travel services and printing business will also be qualified for the tax cuts.
Vietnamese Customs Officials Misinterpret Repatriation Tax
Jan. 23 – Vietnam's Finance Minister said that customs officials misinterpreted a circular that called for taxing paper and polymer used to print currency bills and thus collected taxes on dollars repatriated in cash.
The Circular No. 131 effective January 1st, meted a 10 percent value added tax (VAT) on these materials.
Finance Minister Vu Van Ninh told Thanh Nien News that is office has already sent a note to customs to clarify. He said, “This is a misunderstanding and no bank will have to pay the 10 percent VAT on foreign currency bills.”
Vietnam Raises Taxes on Mining and Crude Oil
Jan. 22 – Vietnam has increased the tax on mineral and crude oil production and doubled the tariff on coal beginning January 19.
The new tax rates will be based on the value of output calculated at commercial prices. Anthracite coal tax from underground mines increased by 4 percent while opencast coal were raised from 3 to 6 percent.
Crude oil production of up to 20,000 barrels daily willl be meted a tax of between 6 percent and 8 percent.
Crude production that reaches 20,000-50,000 bpd will be taxed higher at 8 to 10 percent.
Vietnamese Rice Prices Propped by Manila Deal
Jan. 21 – Prices for Vietnamese rice slated for export increased by 3 to 4.9 percent when exporters start loading 500,000 tons bound for the Philippines starting next month.
The Vietnamese rice shipment is expected to arrive in Manila by February and March as part of a deal that will ship a minimum of 1 million tons of grain.
"Food companies have prepared stocks for the shipment so the price rise won't affect their loading but indicative prices have gone up, anyway," a trader at a foreign firm in Ho Chi Minh City told Reuters.
HCMC Unveils Plans for Waterway Transport System by 2020
Jan. 20 – The HCM City Department of Transport has unveiled its plan to develop the city's waterway transport system by 2020 at a cost of VND2.27 trillion to be funded by the city and official development assistance.
The proposal is still unapproved and will call for developing existing routes and building new ones. All in all the plan will span 88 routes including three categories within the city, 16 national routes and seven local marine routes.
The city routes will connect downtown with the suburbs, and also connect to new seaports. There will soon be seven passenger and cargo ports in Districts 7, 8, 9, Nha Be, Cu Chi, and Thu Duc.
Sourcing Tips for Vietnam
Jan. 19 – As sourcing from China becomes more expensive, foreign investors are increasingly turning to its neighbor, Vietnam, to meet their production needs.
Choosing Vietnam could be an answer for some companies looking to diversify their low-cost-country (LCC) sourcing campaigns beyond China.
Below are five basic tips that should guide companies wanting to source from Vietnam:
a) Work on strengths
A company should be able to evaluate its needs and assess if those needs correspond to the strengths Vietnam already has. For example, Vietnam's top advantage includes access to a highly-skilled yet low-cost labor pool. The country is also rich in natural resources in terms of agriculture and fisheries.
Vietnam Reduces SME Tax by 30 Percent
Jan. 16 – The Vietnamese government has announced that it would cut corporate income tax for small- and medium-sized enterprises (SMEs) by 30 percent starting from the fourth quarter of 2008 throughout this year.
The Ministry of Finance said SMEs in the doing business in the agricultural, seafood, textiles and garments, footwear and electronic industry would be qualified for the tax cut.
Vietnam Rice Trade Ends on Manila Deal
Vietnamese rice exporters stopped trading a popular grade of rice on news that the Philippines had already placed an order to buy one million tons of the grain, although local authorities from both sides remain quiet on the deal.
