Vietnam’s National Assembly on June 19 ratified the government’s proposal to cut corporate income tax (CIT) by 30 percent. The reduction was approved by more than 90 percent of all State members. Of note, the most important factor is that the CIT reduction will apply to all businesses if their total revenue does not exceed the VND […]
On June 8, 2020, both the European Union Vietnam Free Trade Agreement (EVFTA) and the EU Vietnam Investment Protection Agreement (EVIPA) were ratified by Vietnam’s National Assembly. Expected to take effect by July or August 2020, the EVFTA will eliminate almost 99 percent of customs duties between the EU and Vietnam, as well as provisions on intellectual property rights, […]
As Vietnam comes out of lockdown and attempts to recover its economy, the government on May 29 issued Resolution 84/NQ-CP (Resolution 84) unveiling a number of incentives for businesses affected by the pandemic. The Resolution includes the reduction of certain fees, as well as the easing of various regulations related to trade, industries, and foreign employees. Reduction of fees To […]
Tax, Accounting, and Audit in Vietnam 2020, the latest publication from Dezan Shira & Associates, is out now and available for download through the Asia Briefing Publication Store. A strong understanding of tax liabilities enables foreign investors to maximize the tax efficiency of their investments while ensuring full compliance with all tax laws and regulations. Vietnam Briefing’s […]
The COVID-19 pandemic has had a significant impact on global supply chains, upending trade, and slowing growth. Due to the pandemic, China, known as the ‘factory of the world’ shut factories and production lines, battering supply chains. This created a domino effect with businesses struggling to finish products and source raw inputs. Moreover, the US-China trade war was already […]
The US-China trade war has forced firms worldwide to rethink business strategies, investment plans and operations, throwing a spanner in supply chain networks as well as expansion plans. For companies still on the fence, the COVID-19 pandemic has given further impetus to reconfigure and adjust their manufacturing operations. Foreign companies outsourcing operations to reduce costs and improve market share […]
Vietnam’s National Assembly on June 2 approved new changes to personal income tax (PIT) increasing deductions for individuals and dependents in 2020. The government issued Resolution 954/2020/UBTVQH14 (Resolution 954) which is effective July 1, 2020 however the increase is retroactive and thus effective from January 1, 2020. Our HR and tax experts highlight the important points of the resolution. […]
As COVID-19 disrupted supply chains and battered global economies, the Vietnamese government issued several incentives to counter the impact of the pandemic including license fee cuts, financial incentives for employers and employees, and the deferral of tax payments. On April 8, the government issued Decree 41/2020/ND-CP on extending the deadlines of tax and land rental fee payments for companies, individuals, and business households […]
Vietnam has a population of over 97 million people spread over 330,000 square kilometers. The country is still predominately rural, with urban centers providing a home for just 35 percent of the population. Companies entering Vietnam for the first time often fail to account for regional variation in the labor market and invest in locations […]
Vietnam recently released Decree 35/2020/ND-CP, providing guidance on the Law on Competition, which went into effect in July 2019. The Decree gives guidance on specific thresholds for merger notifications, anti-competition agreements, and market dominance among others. Decree 35 took effect on May 15, 2020. Clarification on Mergers and Acquisitions The Decree particularly provides clarification on mergers and acquisitions (M&A). As per the Law […]
Vietnam’s automobile industry has grown significantly in recent years. The average growth rate of domestically assembled vehicles was approximately 10 percent per year in the 2015-2018 period. With major manufacturers such as Toyota, Honda, Ford, Nissan, and Kia in the Vietnamese market, the number of spare parts suppliers have also invested in the industry giving […]
In light of the recent COVID-19 outbreak, Vietnam has imposed several travel restrictions on those entering the country. As of May 19, Vietnam had confirmed 324 cases of COVID-19, though 263 of the patients had recovered. Those planning to travel to Vietnam should be aware of the latest restrictions currently in place: Vietnam has suspended […]