Vietnam Market Watch: Government Contracts, E-Visa Services, and Tax Competitiveness
Can Tho Officials Award Contract for US$47 million Waste plant
Can Tho city officials have granted China Everbright International Limited, a Hong Kong based environmental services firm, the rights to build a US$47 million waste-to-energy plant. The solid waste disposal plant is being designed to process 400 tons of daily household waste and generate electricity for the national grid. The company would implement its in-house technology including a grate furnace system, gas emission treatment system and leachate treatment system. The construction of the 53 hectare plant in Truong Xuan commune (to be located in Thoi Lai District) will commence from February 2017 with operations starting from February 2018. This is the first project in Vietnam funded by China Everbright International.
Vo Thanh Thong, Chairman of the Municipal People’s Committee stated that the company was selected from seven other investors after a visit by the city’s delegation of their Chinese projects. According to Chen Xiao Ping, Director General of China Everbright International, the company currently has 68 waste-to-energy plants with a capacity of 55,000 tons garbage per day and is committed to making this an environmentally friendly project following Vietnam’s environmental standards.
Vietnam to Start E-visas Services from 2017
The Vietnam National Assembly has approved a resolution to offer electronic visas from February 1, 2017, for a trial period of two years. As per the new scheme, foreign tourists can apply online for a single entry, 30 day visa by paying a non-refundable fee. Currently, the Vietnamese government is finalizing nations eligible for the scheme. Vietnam, at present, has a visa-free policy for ASEAN countries along with Japan, South Korea, Norway, Finland, Denmark, Sweden, and Russia. In 2015, Vietnam attracted almost eight million tourists with China, South Korea and Japan leading among the visiting countries.
The Vietnam National Administration of Tourism has welcomed the resolution stating the move will boost the domestic tourism industry and attract more tourists. The e-visa facility will ease the process for tourists and provide the local immigration control over entry as well. Funds collected from the scheme will also allow for subsidizing the tourism promotion program. Vietnam aims to attract a revenue of US$18 billion to US$19 billion and around 10 million foreign tourists each year by 2020.
Vietnam Climbs 11 Places in World Bank’s Tax Rankings
Vietnam climbed 11 places to 167th position in terms of paying taxes according to the World Bank’s 2016 Doing Business report. The World Bank uses criteria of paying taxes to rank 189 countries on the ease of doing business. The Finance Ministry and the Vietnam Chamber of Commerce and Industry highlighted the ranking during a dialogue on November 28 in Hanoi.
Recent changes in the tax administrative and payment procedures contributed to the climb in rankings. The sector abolished 32 administrative procedures and streamlined 40 other processes leading to efficiency. The General Department of Taxation also signed agreements with 41 commercial banks for carrying out nationwide e-tax payments and in turn reducing time to pay taxes from 537 hours to 117 hours a year, a reduction of around 78 percent. Changes implemented by the General Department of Vietnam Customs in clearance time from 21 days to 14 days for exported goods and to 13 days for imports also contributed to the rise.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email email@example.com or visit www.dezshira.com.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
Annual Audit and Compliance in Vietnam 2016
In this issue of Vietnam Briefing, we address pressing changes to audit procedures in 2016, and provide guidance on how to ensure that compliance tasks are completed in an efficient and effective manner. We highlight the continued convergence of VAS with IFRS, discuss the emergence of e-filing, and provide step-by-step instructions on audit and compliance procedures for Foreign Owned Enterprises (FOEs) as well as Representative Offices (ROs).
Navigating the Vietnam Supply Chain
In this edition of Vietnam Briefing, we discuss the advantages of the Vietnamese market over its regional competition and highlight where and how to implement successful investment projects. We examine tariff reduction schedules within the ACFTA and TPP, highlight considerations with regard to rules of origin, and outline the benefits of investing in Vietnam’s growing economic zones. Finally, we provide expert insight into the issues surrounding the creation of 100 percent Foreign Owned Enterprise in Vietnam.
Tax, Accounting and Audit in Vietnam 2016 (2nd Edition)
This edition of Tax, Accounting, and Audit in Vietnam, updated for 2016, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who must navigate Vietnam’s complex tax and accounting landscape in order to effectively manage and strategically plan their Vietnam operations.