Vietnam recently issued Decree No.119/2018/ND-CP (“Decree 119”) on the use of electronic invoices (e-invoices) for the sale of goods and services. Through Decree 119 which will be in effect from November 1, 2018, the government is aiming that at least 90 percent of the firms will use e-invoices by 2020. Types of e-invoices There are […]
The growth in foreign direct investment in Vietnam, driven by its strategic location, low wages, and improvement in the business environment, is the major factor that transformed Vietnam into a manufacturing hub in the region. In the long-term, this trend is expected to continue if Vietnam is able to maintain its competitive advantages. In addition, […]
In the last few years, driven by rising labor costs, the need for diversification, and the government’s focus shifting from labor-intensive sectors to high-tech industries, Chinese as well as foreign firms operating in China have slowly shifted their manufacturing activities to Southeast Asia, especially Vietnam. In addition to these factors, the escalating trade war between the US […]
The Vietnamese government has issued Decree 69/2018/ND-CP (“Decree 69”) to regulate the temporary import and re-export of goods in Vietnam. The two major stipulations focus on Vietnamese traders processing goods for foreign merchants and the time limit for temporary import and re-export of goods. Decree 69 is already in effect. This is an exerpt from […]
The government has issued the Social Security Scheme for expatriate workers, also known as Decree No. 143/2018/ND-CP, which will enter into force on December 1, 2018. Expatriate employers and employees should familiarize themselves with term amendments since new regulations will affect payroll and taxation. Both employers and employees are responsible for contributions to the scheme; […]
According to a recent economic development report by the government, average monthly wages in Vietnam grew by over 10 percent last year. The private sector witnessed the highest growth, while employees of state-owned enterprises earned the highest salaries. Major FDI destinations in the country continue to have much higher salaries compared to the rest of the country. Average […]
“During the first three quarters of 2018, Vietnam’s economy grew by 6.98 percent, highest since Q1-Q3 of 2011. In Q3, the economy expanded by 6.88 percent, largely driven by the growth in the industry and construction and services sector. In addition, the trade surplus in the first three quarters reached over US$5 billion. The GDP […]
Vietnam’s energy demand is predicted to increase by over 10 percent by 2020, while energy consumption is projected to increase four-fold by 2030 compared to 2014. To meet the growing demand which cannot be fulfilled by sources like coal and hydro, the government is promoting other renewable sources such as biomass, solar and wind to […]
The General Statistics Office of Vietnam (GSO) recently released the 2017 Economic Census, which includes information about economic establishments, business activities, labor market, and outsourcing activities. It covers State and non-state domestic enterprises as well as foreign-invested enterprises (FIEs). Enterprises in Vietnam According to the census, as of April 2017, there were 517,900 businesses operating […]
Vietnam’s coast along the South China Sea makes it prone to typhoons. While this geography makes the country ideal for trade and supply chains, seasonal typhoons often cause infrastructural damage, which disrupts business as usual. Last November, for example, Hoi An, a city on the central coast, experienced the devastating effects of Typhoon Damrey: over […]
Which industries are most exposed to typhoons? The agriculture industry is heavily impacted by flooding. Aggressive rainfalls can prompt landslides in mountainous regions, destroying its path and flushing out low-lying areas. Landslides strip the land of natural resources while destroying crops and killing livestock. Damage to dams and reservoirs cause similar problems, which burden farmers […]
Issuing e-invoices Companies need to register before they use e-invoices (with or without tax codes) to get approval from the tax authorities through the General Department of Taxation’s website. Business and individuals selling goods or providing services need to issue an e-invoice (with or without tax codes) to the buyer in a standardized format prescribed […]