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Vietnam Approves 3G Firms
Apr. 13 - The Vietnamese government has approved telecommunications providers to license 3G mobile phone services.
Viettel, Vinaphone, MobiFone, and a venture between Hanoi Telecom and EVN Telecom were named as the four firms qualified for licensing, according to the Ministry of Information and Communications.
The companies will be able to fulfill network infrastructure and equipment requirements in the next three months for formal licensing. -
Vietnam Announces Plan to Boost Foreign Investment
Apr. 10 - The Vietnamese government has announced six measures to aid the country in attracting and managing foreign investment.
According to Xinhua, the first step is to review and revise current policies for business activities with the aim of providing preferential incentives for several industries and to boost disbursement.
The second measure is to publicly announce approved development master plans by the last quarter of the year to expedite site clearance. The third measure will involve review and announcement of infrastructure investment goals by 2020 to mobile capital resources for the completion of sea ports. -
HCMC Gov’t Wants New Income Tax Law Delayed
Apr. 9 - The local government of Ho Chi Minh City has petitioned that the new income tax law slated for June 1 be moved to next year.
The proposal was one of the measures suggested by the HCMC government to help push for more business despite the global recession.
One of the measures also called for government direct ministries, enterprises, and other local agencies to support domestic products to help local businesses increase sales.
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Anti-Dumping Lawsuits Hampering Exports
Apr. 8 - Vietnamese businesses are facing overseas anti-dumping lawsuits that may lead foreign investors to shift orders to other countries.
Just this month, PE plastics bags imported from Vietnam was sued by the U.S. companies Hilex Poly Co., LLC and Super Corporation for anti-dumping. India also imposed the highest anti-dumping tax rate on fibre imported from Vietnam, China and Thailand.Vietnamese companies were similarly sued by the Canadian Association of Shoe Producers for exporting soles to the country. There is also the Brazilian shoes industry group, Abicalcado, who petitioned an anti-dumping investigation against shoes coming from Vietnam.
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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.
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Recommended Trade Fairs Now Online
Apr. 3 - A list of recommended trade fairs for the year is now available online at Vietnam Briefing.
You can click here to download the list or click at the Recommended Trade Fairs and Exhibitions in Vietnam located at the right hand column of the website.
Trade fairs are a great way to get a feel of doing business in a country and meeting suppliers face-to-face. In Vietnam, meeting in person to conduct business is still preferred over dealing with contracts via internet or phone calls.
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Danang Targets 12 Percent GDP Growth
Apr. 2 - Danang is setting a goal of 11 to 12 percent GDP growth rate for this year, inspite the slowdown poised by the global economic downturn.
Last year, the city reported a GDP growth 11 percent against the national average of 7.06 percent. Export earnings came in at more than US$905 million with an increase of 19.5 percent compared to 2007.
Chairman of the city’s People’s Committee, Tran Van Minh, told Vietnam Economic Times that this marked the city’s determination to overcome difficulties, stabilize economic growth and promote social-welfare projects to improve living standards.
Danang was at the top of the Vietnam Provincial Competitiveness Index, compiled by the Vietnam Chamber of Commerce and Industry last year. This reflects the marked improvements made in the area in recent years in terms of infrastructure development and governance.
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Tax Cut Proposal for Animal Feed Imports Submitted
Apr. 1 - Vietnam's Ministry of Agriculture and Rural Development has submitted a recommendation that the government decrease import taxes on animal feed for farmers struggling with costs.
The ministry has requested in its proposal that taxes should be slashed by fifty percent on finished feed products to 4 percent in addition to taxes on dry beans to 5 percent.Moreover, it has also been proposed that various feed ingredients should be given a zero rate. Vietnam currently imports 49 to 52 percent of its ingredients for animal feed.
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Chinese Workers Head to Vietnam
Mar. 31 - Chinese workers have been flooding Vietnam to work on huge Chinese industrial projects in the electricity, cement, building and chemical sectors.
One construction project located in Quang Ninh province has as much as 2,000 Chinese workers while using cement and electricity coming from Chinese companies.
Tran Ngoc Hung, president of Vietnam Construction Association, told AFP: "Chinese contractors have won numerous key projects in the electricity, cement, building and chemical sectors... and sent thousands of workers and equipment to Vietnam."
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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.