Vietnam excise tax

A Samsung manufacturing plant in Bac Ninh Province. — Photo baophapluat.vn The Organisation for Economic Cooperation and Development (OECD) two-pillar solution has introduced a global minimum corporate tax rate (GMCT) of 15 per cent applicable from 2023, but experts have mixed positions on the tax. Nguyen Mai, chairman of the Association of Foreign Investment Enterprises, said that the GMCT would boost Viet Nam’s tax revenues and contain tax avoidance, tax evasion and price transferring in the country. This is because tax rates lower than GMCT have incentivised illegal tax practices without significantly affecting investment attractiveness. In fact, 56 per cent of foreign-invested firms in Viet Nam declared unprofitability in 2020, with a total loss of VND151 trillion (US$6.5 billion), substantially reducing the country’s tax collection. Accordingly, he urged the Government to modify tax regulations in line with the GMCT and re-negotiate with FDI investors on investment terms … [Read more...] about Mixed views on global minimum corporate tax rate

According to the Ministry’s statistics, only from the beginning of 2022 until now, on average, each month, Vietnam imports about US$160 million-US$190 million of foreign fruits and vegetables (mainly fruits). It is estimated that the import turnover of foreign fruits and vegetables in the first six months of the year reached nearly $1 billion. This fact also significantly increases the competitive pressure of foreign fruits and vegetables with domestic agricultural products. General Director of Saigon Co.op Nguyen Anh Duc said that recently, Co.opmart and Co.opXtra supermarkets across the country, in turn, put on shelves a large number of cherries imported directly through the official channels from the USA’s California. This is a standard shipment of cherries certified by the US Department of Agriculture. The supermarket increased the purchase of vegetables and fruits from foreign countries to meet consumers’ demand in addition to a display of Vietnamese agricultural products. … [Read more...] about Fruits from foreign countries imported into Vietnam leading to tough competition

Vietnam’s economy has performed well amid a difficult global environment in the first six months of the year. The Vietnamese Government would stay focused on stabilizing macro-economic conditions, containing inflation, and keeping all major balances intact. Overview of the meeting. Source: VGP Prime Minister Pham Minh Chinh gave his conclusion at the monthly Government meeting held today [July 4]. According to Chinh, Vietnam’s economy has performed well amid a difficult global environment in the first six months of the year. Chinh highlighted the GDP growth of 7.72% in the second quarter, the highest second-quarter growth since 2011, and the six-month GDP growth of 6.42%. Such  half-year growth rate is even higher than the pre-pandemic one. (6.38% in the 2016-2019 period). In this context, 44 out of 63 provinces/cities posted economic growth of over 6%, which showed a consistent recovery level among localities, he said. Other positive factors include … [Read more...] about Vietnam to solidify macro-economic stability: PM

Optimistic exports In 2021, despite COVID-19, Vietnam's goods exports to CPTPP markets recorded encouraging achievements. Japan became the largest CPTPP importer of Vietnamese goods, accounting for more than 52 percent of Vietnam’s export value to the bloc. Meanwhile, exports to Chile and Peru increased 85 and 128 percent over the previous year. According to the Ministry of Industry and Trade, the CPTPP bloc has contributed 15 percent to the global gross domestic product (GDP) and trade. The zeroing of import duties by large markets, such as Japan and Canada, will help Vietnam increase its export value. Vietnam’s major exports, including farm produce and seafood, electricity and electronics, became tax-freed ones as soon as the CPTPP came into effect. The Ministry of Planning and Investment has predicted Vietnam's exports would likely increase 4.04 percent by 2035. Having FTA relations with CPTPP countries will offer Vietnam opportunities to restructure its import and export … [Read more...] about Pacific Rim trade deal boosts Vietnam’s economy

The Government is looking at measures to curb the rising trend of petrol prices on the domestic market, which is placing a huge burden on the economy. Vietnam’s state budget revenue this year is estimated to increase by over VND9.1 trillion (US$385 million) thanks to rising petrol prices. A petrol station in Hanoi. File photo Vice Minister of Finance (MoF) Nguyen Duc Chi gave the remarks at a Government press briefing on July 4. Chi, however, noted the increase in revenue was significantly lower compared to the budget decline from the two cuts estimated to be around VND32.5 trillion ($1.4 billion) in environmental protection tax for fuel and petrol products on April 1, and the upcoming August 1. According to Chi, the MoF has been taking measures to curb the upward trend of petrol prices, which are posing severe impacts on business operations and people’s lives. Chi suggested the latest cut on environmental protection tax on petrol products, set to take … [Read more...] about Rising petrol prices contribute US$385 million to state budget revenue

Prime Minister Pham Minh Chinh addresses the meeting (Photo: VNA) Hanoi (VNA) – Prime Minister Pham Minh Chinh on July 4 chaired an online meeting with localities and a regular Cabinet meeting to review the socio-economic situation in the first half of this year and seek solutions to implement tasks for the rest of the year. Highlighting positive socio-economic results in H1 ar as well as good control of COVID-19 , PM Chinh hailed efforts by ministries, sectors and localities in all fields in the period. Holding that there are still various difficulties in the time to come, he asked ministries, sectors and localities to strictly implement the 13th National Party Congress ’s Resolution, the resolutions and conclusions of the Party Central Committee, Politburo and Secretariat as well as the resolutions of the National Assembly and Government, giving priority to ensuring macro-economic stability and major economic balances and controlling inflation, considering them … [Read more...] about Maintaining macro-economic stability, controlling inflation remain key tasks: PM