Investor opportunities in 2018 The government has lined up a number of divestments of State-owned enterprises (SoE) in 2018. This provides an opportunity for foreign investors looking to acquire brands that are well known locally and have a majority market share. Petrolimex – The country’s biggest petroleum distributor will divest a 24.9 percent stake in […]
M&A Regulations In Vietnam, there is no single law that governs M&A activities and investors should take note of the different laws and decrees that governs such issues. The laws and regulations include: The 2014 Investment Law and Law on Enterprises – These laws set out the general legal framework and investment rules and procedures. […]
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 […]
2017 emerged as one of the strongest years for Vietnam. With the GDP growing at 6.81 percent and a record high FDI, Vietnam will continue to be a priority for investors in 2018. In 2017, the total M&A deal value reached a record high of US$ 10.2 billion. In the first half of 2018, M&A value […]
Partial Tax Exemption scheme Companies that do not qualify for start-up exemption or are beyond the first three years of their incorporation, can avail for partial tax exemptions. This may amount to 75 percent tax exemption for the first S$10,000 (US$7,310) of normal taxable income and a 50 percent tax exemption on the next S$290,000 […]
Minimizing risks Manufacturers based in China can minimize risk by moving to other cost-effective locations in Southeast Asia, including Vietnam. This would require finding new suppliers, renegotiating contracts, and moving assets which will be time-consuming and costly. In the short term, companies can add new suppliers and apply tariff engineering strategies if possible to mitigate […]
Singapore is globally renowned for its competitive tax structure. The country imposes corporate income tax (CIT) at a flat rate of 17 percent, which is the lowest among the ASEAN member states. The single-tier corporate tax system enables businesses to save on the cost of compliance, eliminate restrictions placed on the distribution of dividends from […]
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 […]
Available tax incentives in SEZs To avail tax facilities, the investing company must be registered by the relevant government authority to be a ‘business entity’ that develops or manages a SEZ; have a new investment with new investment plan; and must be involved in chain of ‘main’ activities – as determined by the National Council […]
As Vietnam continues to show fast growth (6.6% in 2017), the need for reliable information regarding this expanding market is increasingly vital for any company or individual looking at developing a business in the country. Dezan Shira & Associates, together with its publishing arm Asia Briefing, has recently published the latest version of “Doing Business […]
Over the last decade, Indonesia’s economic clusters –special economic zones (SEZs) and industrial estates have grown multi-fold, both in terms of number and breadth. In 2014, there were approximately 74 industrial estates with an area of 36,300 hectares in the country. By 2017, the number of industrial estates expanded to 87 with an area of […]
2021 to 2025 Credit institutions should operate in accordance with international standards. In addition, Decision 986 also focuses on increasing the competitiveness and transparency of such institutions. End of 2025 Maintain the bad debt ratio below three percent; Increasing the share of non-credit services to the total income of a commercial bank to around 16 to […]