VN trade deficit hits $2.13b

Hanoi, August 16 (VNA) - The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 percent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their costs.  Speaking at a press conference in Hanoi on August 15, Pham Dinh Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 percent of the car value, the tax on the pickups should be 33 percent.  The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less.  According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 percent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 percent for those with over 2,500cc-3,000cc and 25 percent for those with over 3,000cc.  In recent years, the number of pickups has sharply increased in Vietnam, the majority imported. In 2012, 3,291 units were sold, of which 3,252 were imported and 39 units were locally-assembled. In 2016, sales soared to 28,233 units, of which 27,265 units were imported and 968…... [read more]

The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 per cent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their cost. Speaking at a press conference in Ha Noi on Tuesday, Pham Dinh Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 per cent of the car value, the tax on the pickups should be 33 per cent. The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less. According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 per cent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 per cent for those with over 2,500cc-3,000cc and 25 per cent for those with over 3,000cc. In recent years, the number of pickups has sharply increased in Viet Nam, the majority imported. In 2012, 3,291 units were sold, of which 3,252 were imported and 39 units were locally-assembled. In 2016, sales soared to 28,233 units, of which 27,265 units were imported and 968 units were locally-assembled. Thi…... [read more]

An automobile assembly line at Xuan Kien Automobile Joint Stock Company in Ha Noi. The Ministry of Finance has proposed applying a special consumption tax on pickup trucks. — VNA/VNS Photo Huy Hung The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 per cent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their cost. Speaking at a press conference in Ha Noi on Tuesday, Pham Dinh Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 per cent of the car value, the tax on the pickups should be 33 per cent. The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less. According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 per cent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 per cent for those with over 2,500cc-3,000cc and 25 per cent for those with over 3,000cc. In recent years, the number of pickups has…... [read more]

Speaking at a press conference in Hanoi on August 15, Pham Dinh Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 per cent of the car value, the tax on the pickups should be 33 per cent. The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less. According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 per cent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 per cent for those with over 2,500cc-3,000cc and 25 per cent for those with over 3,000cc. In recent years, the number of pickups has sharply increased in Việt Nam, the majority imported. In 2012, 3,291 units were sold, of which 3,252 were imported and 39 units were locally-assembled. In 2016, sales soared to 28,233 units, of which 27,265 units were imported and 968 units were locally-assembled. Thi said the five-seat pickups had for many years enjoyed special consumption tax lower than that of vehicles with the same number of seats (lower than SUV models, with engine displacement from over 2,500cc to…... [read more]

The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 per cent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their cost.   Speaking at a press conference in Hà Nội yesterday, Phạm Đình Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 per cent of the car value, the tax on the pickups should be 33 per cent. The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less. According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 per cent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 per cent for those with over 2,500cc-3,000cc and 25 per cent for those with over 3,000cc. In recent years, the number of pickups has sharply increased in Việt Nam, the majority imported. In 2012, 3,291 units were sold, of which 3,252 were imported and 39 units were locally-assembled. In 2016, sales…... [read more]

Environmental protection tax on pollutant production The Government’s report emphasises the need to issue the Law on Environmental Protection Tax to cope with the negative environmental impact caused by the current rapid socio-economic development, urbanisation and modernisation processes. Vietnam’s sustainable development is facing numerous challenges due to increasing pollution in the soil, water and air. At present, Vietnam has not yet had a separate law on environmental protection to impose tax on commodities that cause environmental pollution. Usage and production in order to limit the production and consumption of these types of products has also been unaddressed previously. The assessment report of the NA's Committee for Finance and Budget also agrees that a law on environmental protection tax is needed to create a synchronous legal framework. Committee agreed it would help to adjust behaviours that cause a negative impact on the environment and raise funds for environmental protection. This would assist in balancing economic development and sustainable development, as well as implementing international commitments. The draft Law on Environmental Protection Tax consists of four chapters and 14 articles stipulating tax declaration, tax payment and tax refund on environmental protection. Tax payers include producers of coal, oil and gas, plastic bags, Hydrochlorofluorocarbons (HCFC solution), and pesticides that are limited to use in agricultural production. The Government proposes that the law on environmental protection tax regulate a tariff table on the minimum and maximum of tax on environmental protection. With such a tariff table, it is expected to collect a tax revenue…... [read more]

At a seminar was held in the southern province of Dong Nai on August 6, Vietnamese businesses discussed principles of origins in free trade agreements (FTA) and the new Generalised Scheme of Preferences (GSP) of the European Union (EU). Claudio Dori, EU-MUTRAP’s technical assistance team leader, said the new GSP is expected to make a positive impact on Vietnam during the 2014-2017 period such as the re-application of preferential tariffs on a number of export products which was removed following the old GSP. However, Vietnam still faces increasing fierce competition from the union’s FTA partners, said Dori, adding that the problem can be solved once Vietnam signs a trade pact with the EU. According to the new GSP, all products from Vietnam will enjoy preferential tariffs when imported into the EU, but they must meet a number of requirements, especially those in origin. Nguyen Huu Nam, a representative from the Vietnam Chamber of Commerce and Industry (VCCI), said the new regulations will help promote Vietnam’s exports to the EU market. The seminar was co-organised by Dong Nai province’s Department of Industry and Trade and the European Trade Policy and Investment Support Project (EU-MUTRAP).... [read more]

He mentioned huge populations, economic growth, rising purchasing power parity, geographical closeness and membership in ASEAN as potential for bilateral cooperation. During the event, jointly held by the Vietnam Chamber of Commerce of Industry (VCCI) and the Indonesian Embassy, Indonesian business representatives heard about the host country’s investment policy as well as specific tax regulations. Vietnam has become a new destination for Indonesian investors and several companies have been very active in exploring opportunities and completing deals with Vietnamese companies, the ambassador said. He urged the Vietnamese business community to explore Indonesia’s investment and business climate and learn about the opportunities the market holds for foreign investors. “While Indonesia is becoming more attractive to foreign investors, we sincerely look forward to Vietnamese entrepreneurs taking full advantage of what Indonesia has offered, both in terms of business and investment,” he said. Bilateral trade and investment between the two nations have developed significantly over the past years, said head of VCCI’s International Relations Department Pham Quang Thinh, who added that the two business communities could bring the relationship to a higher level. Dang Xuan Quang, deputy head of the Ministry of Planning and Investment’s Foreign Investment Agency, emphasized the importance of accelerating the two nations’ ties with a focus on speeding up trade and investment promotion and links between the two private sectors. Last year, two-way trade turnover reached US$4.6 billion, with Vietnam’s export revenue contributing over US$2.35 billion. Vietnam imported more than US$2.24 billion worth of goods from Indonesia, including paper,…... [read more]

Obscure land lease laws, income tax regulations, inadequate infrastructure, and overly burdensome administrative procedures are just a few of the obstacles to attracting higher levels of foreign investment. The adoption of new technology is going to be critical for Vietnam to maintain its competitiveness in the global arena of high-tech agriculture but that takes large amounts of investment, one representative said. The representative added that if Vietnamese agriculture doesn’t find the funds to invest in modern technology then the nation may as well forget the ambitions on becoming a food bowl in Asia. The unclear land lease laws are causing much trepidation by investors, a representative from Nestle Company said, indicating that there are just too many unanswered questions. The representative also raised a number of queries regarding the future of high-tech agriculture in relation to governmental and administrative policies adding that the lack of clarity makes it difficult, if not impossible, to attract funds. Meanwhile, a representative from Syngenta Vietnam Co, Ltd also emphasised the need to devise a policy for foreign companies to establish research and development subsidiaries and improve intellectual property laws. A Vietnam Chamber of Commerce and Industry (VCCI) representativeTran Thi Thanh Tam in turn said Vietnam has signed several free trade agreements (FTAs) which have opened up huge opportunities for farm produce to access foreign markets. However, many of these nations have set up strict requirements and technical barriers in terms of product quality and significantly higher levels of investment are needed to purchase the…... [read more]

The agreement aims to prevent tax evasion of taxes on income and assets, helping boost bilateral economic cooperation. With its clear and transparent tax regulations, the agreement will create a sound legal environment for both sides to conduct business and investment activity, said Truong Chi Trung, Deputy Finance Minister of Vietnam. It will also help facilitate economic, investment and trade cooperation between the two countries, contributing to tax incentives for foreign investors in Vietnam and opening up economic and investment cooperation between Vietnam and other countries in Europe. Trung voiced his ministry’s resolve to work closely together with its San Marino counterpart to effectively implement this agreement, thereby facilitating bilateral economic and trade exchanges. For his part, San Marino Minister for Finance and Budget Claudio Felici stressed that the agreement is of great importance to a small country like San Marino given the current global economic recession. Despite limited trade exchanges between San Marino and Vietnam, the signing of the document will add fresh impetus to the two countries’ cooperation and development, and help San Marino businesses explore Vietnam’s legal system. Covering 61.5sq.km and with a population of 30,000, San Marino is one of the smallest countries in the world. This republic has joined the United Nations and developed relations with many countries around the globe. Vietnam and San Marino established diplomatic ties in 2007.... [read more]




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