Vietnam

An Overview of Transfer Pricing in Vietnam

Many foreign businesses delocalize their production facilities in Vietnam and charge their foreign outposts for administrative, technical, financial, and commercial services. However, financial administration teams need to be aware that their transactions must comply with the arm’s length and substance-over-form principles. Before the government released Providing tax administration applicable to enterprises having controlled transactions (‘Decree 20’) in […]

Vinh LeManager, Dezan Shira & Associates

Ho Chi Minh City: How Vietnam’s Emerging Megacity Will Develop

Megacity has become a buzzword associated with rapid urbanization and economic development. For Vietnam, the commercial capital Ho Chi Minh City is often identified within this narrative.  Megacities are typically defined as having a population in excess of 10 million. These demographic pressures often inspire governments to produce large-scale development programs designed to integrate infrastructure regionally. In […]

Alberto VettorettiManaging Partner, Dezan Shira & Associates

Renewables in Vietnam: Current Opportunities and Future Outlook

Vietnam is one of the most efficient power markets in Southeast Asia, driven by low-cost resources such as hydro and coal. The country has achieved around 99 percent electrification with relatively low cost in comparison to neighboring countries. With electricity demand projected to increase by eight percent annually until 2025; the government is moving forward […]

Vinh LeManager, Dezan Shira & Associates

Foreign Firms Continue to Dominate Vietnam’s Online Tourism Industry

The rise in low-cost carriers, internet penetration, and smartphone adoption has led to a rapid growth in the online tourism industry, which is dominated by foreign online travel agencies (OTAs). When compared to foreign firms, domestic firms continue to face issues such as the lack of technology solutions, the scale of partnerships with hotels, and […]

Vinh LeManager, Dezan Shira & Associates

Vietnam’s Corruption Perception Ranking Declines in 2018

In the latest 2018 Corruption Perceptions Index (CPI) by Transparency International, Vietnam ranked 117th amongst 180 countries and territories, dropping by 10 places compared to 2017. It scored 33 points out of 100 in the 2018 CPI, down two points compared to 2017. This was a surprising result as Vietnam has made significant efforts in its […]

Alberto VettorettiManaging Partner, Dezan Shira & Associates

Vietnam: New Incentives for Science and Technology Firms

The Vietnamese government issued Decree No.13/2019/ND-CP (“Decree 13”), which provides preferential treatment such as corporate tax cuts and exemptions, credit incentives, and exemption or reduction in land and water surface lease fees for science and technology enterprises. Decree 13 will take effect on March 20, 2019. Currently, Vietnam has more than 380 firms certified as science […]

Tam NguyenManager, Dezan Shira & Associates

Vietnam Issues Guidelines for Self-Inspection of Labor Law Compliance

Last year, the Vietnamese government issued Circular 17/2018/TT-BLDTBXH (“Circular 17”) regulating self-inspection of labor law compliance by enterprises. The Circular, already in effect since January 1, 2019 provides guidelines for self-inspection of compliance with labor law, online reporting, and responsibilities of employers, labor unions, and the state’s inspection agencies. According to Circular 17, the timing […]

Tam NguyenManager, Dezan Shira & Associates

Investments in Vietnamese Startups Tripled in 2018

In 2018, investments in Vietnamese startups reached US$889 million, nearly triple the deal value compared to US$291 million in 2017, according to a report released by Topica Founder Institute (TFI), a startup accelerator programme. The number of deals in 2018 was the same as 2017, at 92. Last year was a significant year for Vietnamese […]

Alberto VettorettiManaging Partner, Dezan Shira & Associates

New Rules for Vietnam’s Medical Devices Businesses

Vietnam recently announced new rules governing the management of medical devices. From January 1, 2019 – all medical devices sold in Vietnam will require approval by local authorities. Previously, the assessment of the risks and classification of medical devices by international qualified bodies were recognized by the government of Vietnam. Government approved entities will also […]

Vinh LeManager, Dezan Shira & Associates

How to Find a Good Distribution Partner in Vietnam

Companies distributing goods in Vietnam will invariably come to rely on local partners to carry out elements of their sales, marketing, or distribution. These companies can play an invaluable role in establishing brand recognition, sales channels, and effective distribution networks within the country. Executives approaching Vietnam are quick to see the utility of partnering with existing players […]

Vinh LeManager, Dezan Shira & Associates

Vietnam’s Tourism Industry Continues its Growth in 2018

With over 3000 kilometers of coastline, pristine beaches, dynamic growing cities, mountainous highlands, and diverse cultural and historic sites, Vietnam’s tourism industry continues to rank amongst the fastest-growing tourist destinations in the world, with revenue in 2018 reaching VND620 trillion (US$26.75 billion), up VND110 billion (US$4.75 billion) compared to 2017. Since 2010, the number of […]

Alberto VettorettiManaging Partner, Dezan Shira & Associates