Tax challenge to continue in New Year, Source: AFP/File | Damien Meyer Several days before the Law on Cybersecurity comes into effect on January 1, 2019, Facebook remained silent about its plan to open a representative office in Vietnam, but a Google representative told VIR, “There are a number of factors we need to look at before opening an office, and we have nothing to announce at this time.” Discussing the issue with VIR, economist Vu Sy Cuong, who has long experience in financial analysis and research, said that the establishment of representative offices depends on the decree outlining the specifics of the Law on Cybersecurity, which is currently being drafted. “Without the decree providing guidelines on implementation, the Law on Cybersecurity coming into effect will not be able to force firms to establish representative offices in Vietnam,” Cuong added. The latest draft of the decree is currently collecting opinions for further fine-tuning, which is … [Read more...] about Tax challenge to continue in New Year
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20th edition of Vietfish expo opens in HCM City The country’s premier fisheries expo, the Viet Nam Fisheries International Exhibition, returns to HCM City 30 per cent larger than when it debuted in 2008.The event, hosted by the Viet Nam Association of Seafood Exporters and Producers (VASEP), opened on August 22 at the Sai Gon Exhibition and Convention Centre in District 7.In its 20th edition this year, the annual event, with the theme “Asia’s Home of Seafood”, has attracted 233 exhibitors from 14 countries and territories.The organisers said the exhibition this year has been expanded by nearly 200sq.m from last year with 7 per cent more exhibitors.Vietnamese companies are once more showing off their potential as leading fisheries exporters.Some 66 per cent of the exhibitors are domestic, organisers said.Of the participants, 55 per cent are in aquaculture and services while the remaining 45 per cent sell machinery and equipment, chemicals, … [Read more...] about BUSINESS NEWS IN BRIEF 24/8
The Viet Dragon Securities Company (VCSC) has forecast a bleak outlook on sluggish sales and rising input costs for Hậu Giang Pharmaceutical Joint Stock Company (DHG). The company has downgraded the potential growth of DHG to 'Underperform', VCSC said in its report. VCSC predicts that the compound annual growth rate (CAGR) of DHG’s after-tax profit in the 2017-2020 period would stand at only 3 per cent per year. In the first quarter of 2018, DHG’s in-house sales slid 4 per cent year-on-year, VCSC said, adding that amid stiff competition in the over-the-counter (OTC) channel, DHG still lacks distinctiveness in its products. OTC or over-the-counter means distributing drugs through drugstores. “We have not seen enough changes in DHG to overcome the headwinds in the OTC channel.” DHG’s past success was premised on its market-leading distribution network. However, its sales of in-house products have stalled over the last four years as DHG’s … [Read more...] about VCSC downgrade local pharmacy firm
The concerns were raised after the businesses received a Government document instructing relevant ministries and agencies to build technical barriers to control the quality of imported vehicles. Businesses recommended that the Government maintain stable long-term policies for them to assure future investment in Vietnam. Auto businesses are concerned about Vietnam’s future policy orientation with regard to the auto industry, which they think will affect their business strategy. Photo: thanhnien.vn The request was sent to the Government after an inter-sector auto inspection team worked with 17 auto importers and locally-assembled manufacturers to solve issues while implementing the Government’s decree on car manufacturing, assembly, importation and warranty offering - a move that came into effect from January 1, 2018, and tightened car imports. Enterprises must now receive vehicle type approval (VTA) certification when importing cars from the authorities of … [Read more...] about Gov’t asked to help automakers overcome difficulties
Handing over the right of prosecution and investigation to tax authorities may halt tax evasion? Authorities powerless in face of tax evasion by foreign firms In reality, despite the fact that foreign firms are acquiring massive annual revenue and profit from their operations in Vietnam, the local government faces difficulties in collecting tax from them, as could be seen with the examples of Uber and booking sites Agoda, Booking.com, and Traveloka. A number of these enterprises have been delaying tax payments, while others took advantage of loopholes to evade tax obligations. Notably, in late January 2017, the Ministry of Finance (MoF) asked booking sites that allow tourists to book hotel rooms in Vietnam to calculate and pay VAT and CIT. Targeted websites include Agoda, Traveloka, Booking, and Expedia. The CIT rate is 5 per cent of the total revenue. VAT is calculated on the added value that the companies, called “the foreign contractor” by the ministry, make. MoF … [Read more...] about Extending mandate of tax authorities may halt tax evasion?