A tax overhaul passed by the U.S. Congress by the end of last year may affect Vietnam’s economy as American investors are likely to send their investment back home, where the income tax rate has been significantly slashed, Vietnamese economic experts have warned. The sweeping tax reforms, signed into law by U.S. President Donald Trump on December 22, include reductions in the corporate income tax rate from 35 percent to 21 percent, and a minimum of 10.5 percent taxes on foreign profits U.S. companies send home. The tax overhaul ought to encourage corporations to relocate or build new operations in the U.S. instead of sending them overseas, where the corporate tax rate is often lower. The U.S. government also hopes that U.S. companies will repatriate their foreign cash pile, with the attractive 10.5 percent tax levied for this kind of profit. Countries where U.S. companies are doing business, including Vietnam, see those benefits as challenges for their respective economies, members of the economic advisory panel to Vietnamese Prime Minister Nguyen Xuan Phuc said in a recent report. “U.S. companies will transfer their profits generated from operations in Vietnam back home, rather than keeping the money here for reinvestment,” Vu Viet Ngoan, head of the panel, told Tuoi Tre (Youth) newspaper. “Vietnam’s economy will be impacted if many U.S. corporations would follow this trend.” Employees are seen at a shoe making plant in Vietnam. Photo: Tuoi Tre But the bigger concern comes from neighboring economies, not the U.S. tax bill itself,… [Read full story]
The amount includes capital poured into newly licensed and existing projects and share purchase. The figure is expected to reach 35 billion USD by the end of the year, surpassing the yearly target. Around 16 billion USD has been disbursed in the 11-month period, up 11.9 percent year on year. Disbursement of foreign capital is also expected to reach a record high at about 17.5 billion USD for the entire year.According to Minister of Planning and Investment Nguyen Chi Dung, foreign investment is expected to maintain the momentum of this year to fare well in 2018. He attributed the increase…... [read more]
By Tu Hoang - The Saigon Times Daily HANOI - International development partners are urging the Government to settle down the macroeconomic chaos in order to put the country back to the radar screen of foreign investors as uncertainties have caused foreign investment to fall. Japan is the pioneer to do so. For the first time ever, the joint committee of the Vietnam-Japan joint initiative phase 4 has defined macroeconomic stability as the major condition for the country to improve the business environment. The initiative, being implemented from July to the end of next year, highlighted concerns over the depreciation…... [read more]
Foreign-invested banks in Vietnam reported a considerable rise in their profits in 2011 despite the economy recession. On March 29, HSBC Bank in Vietnam announced that its pre-tax profits in 2011 had risen 40 per cent compared to 2010. Standard and Chartered Bank also announced its revenue had increased for a ninth consecutive year with revenue of $17.64 billion and an operating profit margin of $6.78 billion. The total profit of retail banking sector increased 26per cent, with profits from the institutional banking sector reached five billion. A Standard Chartered Bank representative said, "This achievement was due to strong capital,…... [read more]
VietNamNet Bridge - The big economies, including in Taiwan, Japan and South Korea, are believed to see strong recovery next year, which will prompt the investors from these countries to make outward investments. Vietnam remains the attractive destination in the eyes of investors. However, experts have pointed out that Vietnam is losing its advantages . At the conference on exchanging experience in promoting investment held in Binh Duong province on December 27, ten officers in charge of investment promotion from Vietnamese representative agencies in foreign countries, shared the information they get about the foreign direct investment (FDI) flow to Vietnam.…... [read more]
The jury is out on whether new regulations will get the retail market moving. On April 22, 2013, the Ministry of Industry and Trade (MoIT) issued further guidance via Circular 08/2013/TT-BCT (Circular 08) on goods trading and directly related activities (referred to as "trading activities") of foreign-invested enterprises (FIEs) in Vietnam. Circular 08 replaced Circular 09/2007/TT-BTM and Circular 05/2008/TT-BCT and came into effect on June 7, 2013. This is seen by many as a significant attempt to reinvigorate foreign investment in the retail sector by relaxing many of the market development barriers contained within the previous circulars. However, the question…... [read more]
