Vietnam Cuts License Fees for 5 Industries to Reduce COVID-19 Burden
The cut in fees range from 20 percent to 50 percent and took effect on May 5. The reduction will remain in effect until December 31, 2020, following which normal prices will be applicable.
Industries such as construction, banks, financial services, travel, and water resources will benefit.
We highlight the five sectors eligible for the rate cuts.
5 industry types eligible
Banks and credit organizations
The Ministry of Finance (MoF) issued Circular No 33/2020/TT-BTC, which sets the rates of collection and payments of fees and operational licenses for new banks and credit institutions. From May 5 until the end of the year new banks and credit institutions will have to pay just 50 percent of licensing fees equivalent to approximately US$3,000 (VND 70 million).
As per Circular 34/2020/TT-BTC, there will be a 50 percent reduction in construction fees. In addition, the fees for the construction capacity certificate has been reduced to US$21 (500,000 VND) as compared to the current US$43 (1,000,000 VND). For individual applicants, this certificate will cost US$6 (VND 150,000) as compared to the current US$13 (VND 300,000).
For tourism companies license fees for international and domestic firms have been reduced by half from May 6 until the end of the year as per Circular 35/2020/TT-BTC. In addition, the fee for a tour guide card has been reduced US$4 (VND 100,000) from the current US$14 (VND 325,000).
As per Circular 37/2-2-/TT-BTC, the securities fees and charges will be reduced to 50 percent for rates as per Article 2 in Circular 272/2016/TT-BV with some exceptions.
As per Circular No 36/2020/TT-BTC, fees for evaluation and issuing new permits for water resources exploration and exploitation will be reduced by 20 percent. The fee for using hydrological data will be cut by 30 percent.
Further incentives in pipeline
Further clarification and details are likely to be issued by the government. Vietnam continues to work towards incentives for different sectors. Further circulars on investment incentives are likely in the coming weeks. Most recently, Vietnam’s central bank – the State Bank of Vietnam (SBV), cut policy interest rates from May 13. The refinancing rate was reduced to 4.5 percent from the current 5 percent, while the discount rate was cut to 3 percent from the current 3.5 percent. The cut is the second time for the bank in less than two months.