A man smokes a cigarette while others look at a tablet device while sitting outside of a store in Hanoi, Vietnam. Photo credit: Bloomberg Vietnam's latest bid to raise its tobacco taxes will do little to curb consumption because it fails to hit the country's die-hard smokers where they hurt most - their pockets, health groups say. At a meeting of the Standing Committee of the National Assembly - Vietnam's legislature - on Thursday, Minister of Finance Dinh Tien Dung put forth a proposal to raise the excise tax on tobacco from 65 percent to 70 percent in January 2016 and 75 percent in 2019. The finance ministry said the 2010 Global Adult Tobacco Survey found that around 15.3 million people actively smoke in Vietnam, exposing an estimated 46.8 million, mostly women and children, to secondhand smoke. Smoking caused around 40,000 deaths in Vietnam in 2007, the World Health Organization (WHO) estimates, which warned that this figure could surge to 70,000 by the end of 2030 if drastic … [Read more...] about Vietnam appeases Big Tobacco with toothless taxes
What is an excise tax
For experts and analysts, the answer is a resounding 'no' while the Trans-Pacific Partnership could render anti-smoking laws toothless Promotion girls dance at a beverage fair in Hanoi. A government proposal to increase excise taxes on alcohol and tobacco is unlikely to curb consumption in a country where people's smoking habits die hard and their thirst for beer is just as difficult to quench, experts say. PHOTO: AFP A recent government proposal to increase special consumption taxes on alcohol and tobacco is unlikely to curb consumption in a country where people's smoking habits die hard and their thirst for beer is just as difficult to quench, experts say. Given Vietnam's current tax regime, the planned hikes by up to 30 percentage points pale in comparison with those in Vietnam's neighborhood and are too paltry to hit smokers and drinkers where it hurts most - their pockets, experts say. They add that such tax increases would turn out to be even more cosmetic if … [Read more...] about Will new taxes curb smoking and drinking in Vietnam?
Vietnam, Japan cooperate for high-yield cassava Vietnamese and Japanese scientists have agreed to study genetically modified cassava to produce a high-yield variety, helping reduce soil erosion or depletion in cassava-growing areas. A document to this effect was signed in the Japanese city of Yokohama on May 22 between representatives of the Japan Institute of Physical and Chemical Research and the Vietnam Institute of Agricultural Genetics. Addressing the signing ceremony, Deputy Prime Minister Nguyen Thien Nhan said that he hopes the project will be a success to pave the way for future agricultural cooperation between the countries. In the coming time, a joint laboratory will be set up in Vietnam to facilitate both countries' scientists to strengthen cooperation in research.- First int'l sea-tourism fair attracts foreign businesses Eighty foreign businesses will attend the first international thematic fair on sea and island tourism in Vietnam, slated for early June in the central … [Read more...] about BUSINESS IN BRIEF 28/5
An assistance package targeting local businesses at an unprecedented scale encompassing diverse solutions from tax reduction to exemption was officially unveiled at a government press meeting yesterday. The package, worth a whopping sum of VND29 trillion, or US$1.39 billion, include delaying or cutting corporate income tax (CIT); deferring value-added tax (VAT); exempting excise tax, and slashing land leasing fee for certain type of businesses. Over the first four months of this year, 17,735 businesses have been dissolved or ceased operations, a 9.5 percent year on year increase, according to figures from the Ministry of Planning and Investment. Of these, firms based in Ho Chi Minh City number more than 5,800, while the figure is over 3,500 for Hanoi. Most of the dissolved companies operated in construction (3,100 firms), manufacturing and processing (2,900), and real estate sectors (247). “Businesses’ VAT from April to June will enjoy a six-month deferral, with the … [Read more...] about $1.4 bln package to assist Vietnam firms unveiled
Hapro and Protrade Corp. report successful IPOs Both state-owned Hanoi Trade Corporation (Hapro) and Binh Duong Producing and Trading Goods Corporation (Protrade Corp.), the owners of several golden land plots and industrial parks, conducted successful IPOs. On March 28, Protrade, the third largest state-owned firm in the southern province of Binh Duong, offered 30 million shares for sale, equalling 10 per cent of its stakes, at its IPO with the initial price of VND12,000 ($0.53). As a result, 63 investors joined the auction, four of whom won with the highest bid of VND21,000 and the lowest bid of VND16,600. The average selling price was VND17,474, which was 46 per cent higher than the initial price. After the IPO, the state’s holding in Protrade decreased to 50 per cent, equalling 150 million shares. Besides, Protrade Corp. will put 119.7 million shares, equalling 39.91 per cent of the stakes, on sale to strategic investors. Previously, Protrade Corp. also published the … [Read more...] about BUSINESS IN BRIEF 4/4