Other Briefings
E-Customs Clearance Process Still Limited
HO CHI MINH, Jul. 14 – Despite being offered on a trial basis in Ho Chi Minh City and Hai Phong since 2005, the e-customs clearance service is still bogged by inefficiencies and delays. City customs departments are ill-equipped to handle the surge of applications because of insufficient bandwidth capacity sometimes aggravated by the country’s […]
Personal Income Tax Exemption Approved
Jun. 22 – Vietnam’s National Assembly voted in favor of the Personal Income Tax (PIT) exemption from the period beginning July 1. The ministry is expected to release a follow-up announcement detailing the coverage of the exemption. The directive should specify the residency status subject to tax exemption, types of income subject to tax exemption […]
More Goods Qualified for 50 Percent VAT Discount
May 20 – Vietnam’s Ministry of Finance has added thousands of goods on their list that qualify for a 50 percent cut on VAT rates until the end of the year. The list added knives and cutting blades used for machines or mechanical tools, welding rods, water tanks with a capacity of more than 300 […]
First-Half Income Tax Exemption Proposed
May 8 – Vietnam’s Ministry of Finance has sent a proposal that taxpayers be exempt from paying the Personal Income Tax (PIT) during the first half of the year. PIT collection was originally set to begin at the start of the year but was deferred to back taxes being paid when collection began. The new […]
Changes on Personal Income Tax Regulations for Expats
Apr. 7 – Vietnam's Ministry of Finance has issued a new circular amending the guidelines on the implementation of the Personal Income Tax law.
One of the most important points of the circular detailed that all stated benefits that expatriates were previously entitled to and which were tax exempt under previous PIT regulations, are now fully re-instated.
These include: one time relocation allowances when expatriates move to Vietnam; one round trip air-tickets for annual leave back to home country; school fees paid by the employer for children of expatriates and employer provided accommodation is taxable at the lower of the actual rent or 15 percent of the expatriate’s total base taxable income.
Vietnam Attracts US$6 Billion Worth of FDI
Mar. 30 – For the first quarter of the year, Vietnam attracted US$6 billion in foreign direct investment; comprising of 60 percent of the figure for the same period last year, reports the Ministry of Planning and Investment.
So far, FDI mostly went to the province of Ba Ria-Vung Tau amounting to US$5 billion, mainly for entertainment and tourism projects. Ninety-three new foreign investment projects were licensed during the period with an investment capital of US$2.1 billion.
Foreign investors also registered an additional capital of US$3.84 billion in 34 existing projects, an increase of 34 percent in capital compared to the same period last year.
Vietnam, China Complete Border Demarcation
Feb. 24 – China and Vietnam have completed the final demarcation of their land border located at the Youyiguan border gate in Pingxiang City in south China's Guangxi Zhuang Autonomous Region.
The border, spanning 1,300-kilometers, begins at the junction of China, Vietnam and Laos and continues along the Beilun River to the coast.
On the Chinese side is Yunnan Province and Guangxi Zhuang Autonomous Region while on the Vietnamese side is Cao Bang, Lang Son, Dien Bien, Lai Chau, Lao Cai, Ha Giang, Guang Ninh.
HCMC Named One of the Top Emerging Locations for Outsourcing
Feb. 11 – A global service survey has named HCM City as one of the world’s top ten emerging locations for outsourcing in 2008.
The top 50 Emerging Global Outsourcing Cities survey was conducted by Tholons, a strategic advisory firm for global outsourcing and research.
Ho Chi Minh City was ranked at fourth place in terms of application development and maintenance, product development and testing.
The city's biggest firms for outsourcing include FPT Software, IBM, Luxoft and Vietnam Software Outsourcing which hire most of their employees from the HCM City National University and the University of Technical Education.
Vietnam’s Central Bank to Loosen Monetary Policy
Feb. 3 – Vietnam's central bank said it will continue to ease monetary policy this year by cutting more benchmark interest rates.
State Bank of Vietnam Governor Nguyen Van Giau said, the policy would be flexible to “stabilize the macro economy and prevent a [balance of payments] deficit.”
He added that credit growth could be 3.2 to 3.5 times that of the gross domestic product this year while the government expects GDP to grow by 6.5 percent.
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.”
