Vietnam Regulatory Brief: Import Duty Exemptions, Foreign Contractor Licensing, and Cambodian Information exchange
New Exemption for Import and Export Duties
The Ministry of Finance on August 31 issued new guidelines in Law no 107/2016/QH13 on import and export duties. Goods that are eligible for duty exemption now include:
- Import duty exemption is now for both toll manufacturing and contract manufacturing.
- Goods that are temporarily imported or exported for warranty, repair, replacement and subject to certain conditions
- Goods that are filed under commercial temporary import for re-export custom procedures
- Materials, supplies, and components imported for digital content, information technology and software.
- Fertilizers and pesticides which cannot be locally made.
The above exemption will be welcomed by investors who want to enter the country. The exemption apply to items that are typically not found in the country or are difficult to get. Investors should look out for such sectors that are exempt to benefit from the latest regulations.
Licensing Procedures for Foreign Contractors Amended
New regulations by the Ministry of Construction was introduced for foreign construction contractors in relation to licensing procedures. The ministry came out with Circular 14/2016TT-BXD which went into effect on August 15. The regulation refers to foreign companies and individuals who want to conduct construction related activities in the country.
The changes have been made to the documentation requirements which must be submitted to the licensing authority. In addition, the process will take longer and will now be 20 days instead of the previous 15. License holders will now only need to submit annual operations reports instead of on a bi-annual basis. Licenses can be revoked if contractors have been sanctioned for violations twice as compared to three times before.
Vietnam, Cambodia to Strengthen Information Exchange
Vietnam’s government agencies will coordinate with Cambodia to deepen bilateral relations in all areas including information and communications. In a reception hosted by the Cambodian Prime Minister Hun Sen, Sen urged greater information sharing between the two countries. Both the countries signed four cooperate documents including documents on information sharing between 2016-2020 between the Vietnamese Ministry of Information and Communications (MIC) and the Cambodian Ministry of Information. The event was held in Phnom Penh on September 22 and 23. The developments bode well for investors in both countries.
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 firstname.lastname@example.org 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.