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
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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?
The Ministry of Finance has proposed raising environmental protection taxes on oil and petroleum products from the current VND3,000 (13 US cents) to the ceiling level of VND4,000 (17 cents) per litre beginning July 1, 2018. Accordingly, environmental protection taxes have been proposed to increase by VND500 per liter of diesel oil to VND2,000 and by VND1,100 per liter of other oil products to VND2,000. Plastic bags are also expected to see higher environmental taxes, rising from the current VND30,000 to VND50,000 per kilo, if the draft is approved. Last year, the ministry sought opinions about a draft law on the environmental protection tax hike to the highest level of VND8,000 per litre. The proposal faced fierce opposition from both the public and economists. In 2014, a similar hike was imposed, raising the taxes from VND1,000 to VND3,000, which the ministry referred to as a good way to stabilise the State budget. The ministry said that the tax hike was necessary because import taxes … [Read more...] about Finance Ministry proposes environmental tax hike
After two years of deployment, the Vietnam Automated Cargo and Port Consolidated System and Vietnam Customs Information System (VNACCS/VCIS) will be deployed in all 34 provincial/municipal customs departments across the country on June 25, the Vietnam Business Forum Magazine (VBF) reported. Funded by the Government of Japan, this project is based on techniques and technologies applied by Japanese customs authorities and government. Hence, VNACCS/VCIS is expected to become an effective tool for Vietnamese customs authorities and the government, and help the business community carry out customs clearance procedures. The VNACCS/VICS system automates many tasks like automatically determining the tax rate for each HS code, including special preferential tax rates in accordance with agreements with other nations, and calculating duties on specific merchandise in every declaration sheet, automatically storing modifiable declaration forms. This is a huge benefit for enterprises when they do … [Read more...] about Bản in : Vietnam Customs Information System in the pipeline
Minister of Industry and Trade Vu Huy Hoang spoke to the Vietnam Government Portal on how Vietnam can make use of the free trade agreement signed with the Republic of Korea in Hanoi on May 5. Q: Vietnam is the first FTA partner to gain market access in the RoK for agricultural products such as garlic, ginger, honey, and sweet potatoes ─ products Vietnam has a comparative advantage in producing. In your opinion, what criteria must domestic enterprises meet to export these items to the RoK? A: Exports from Vietnam will enjoy many new market opportunities because of the strong market access commitments from the RoK. The RoK liberalised 97.2 percent of import values (calculated according to 2012 figures), accounting for 95.4 percent of all tariff lines, including many of Vietnam's key agricultural commodities and seafood products such as shrimp, crab, fish, tropical fruits and industrial goods like textiles, furniture, and engineering products. Vietnam is the first FTA partner with which … [Read more...] about Bản in : Vietnam-RoK FTA brings new opportunities: Minister