Other Briefings
New Circular Allows Foreign Investors to Open Direct Investment Capital Accounts in Vietnam
On August 11, the State Bank of Vietnam issued a new circular to provide detailed instructions on the management of foreign currency FDI operations in the country.
Vietnam Issues Circular 78 on Corporate Income Tax Incentives and Deductions
On June 18, 2014, Vietnam’s Ministry of Finance published Circular 78, which provides additional guidance regarding Decree 218 on corporate income tax incentives and deductions. The Circular will come into effect on August 2, 2014 and will be effective for the whole 2014 tax year.
Vietnam’s 12th Draft Law of Residential Housing Expected to be Favorable Towards Foreigners
At a National Congress meeting on June 18th, many Congressmen expressed their approval towards the 12th Draft Law of Residential Housing, which proposes more opportunities for foreign organizations and individuals who wish to purchase housing in Vietnam.
Vietnam’s PM Urges Improvement of Customs Process
Vietnam’s Prime Minister, Nguyen Tan Dung, has called the country’s lengthy import-export procedures “unacceptable” and has proposed upgrading the process so that it is more in line with standards around the Asian region.
Vietnam’s Land Law Goes Into Effect, More Room for FIEs
On July 1st, 2014, Vietnam’s 2013 Land Law (revised) officially came into effect, The new law has seven more chapters and 66 more articles than the original 2003 Land Law. The new law institutionalizes the points of view and orientations contained in Resolution 11-NQ/TW of the sixth Plenum of the Party Central Committee. Although the new Land Law still does not allow foreign-invested enterprises to receive the transfer of land use rights or purchase land, it does not prohibit foreign investors from buying the capital associated with the land, for example, factories.
Vietnam Tightens Regulations on Foreign Sourced Loans
On May 15, 2014, new legislation went into effect that tightened the Vietnamese government’s control of foreign sourced loans. This legislation is of particular importance since many Vietnamese businesses tend to opt for loans from overseas financial institutions and business partners.
Vietnam Finance and Investment Regulatory Update
An update on the latest regulations and legislation affecting finance and investment in Vietnam.
Airfares for Overseas Employees Working in Vietnam Not Subject to Personal Income Tax
On May 15, Vietnam’s Ministry of Finance released Official Letter 6375/BTC-TCT which clarified that airfares and related expenses provided to overseas employees for travel between their foreign location and Vietnam are not subject to Personal Income tax.
Enterprise Law 2005 Amendments Under Discussion
Amendments to the Enterprise Law 2005 are projected to be passed at the 13th National Assembly this October. These draft amendments have received significant attention and opinions from related departments, economic experts and enterprises.
Circular 39/2014 Issued on Invoicing Regulations in Vietnam
Vietnam’s Ministry of Finance has issued Circular 39/2014 to provide guidance on invoicing regulations, replacing Circular 64/2013. The new Circular will come into effect from June 1, 2014. The content in the new Circular regards amendments to invoice self-printing and the tightening of the scope of entities allowed to self-print invoices.
