Tax reform passed by the US Congress at the end of last year may affect Vietnam’s economy as US investors are likely to send their investment back home, where the corporate income tax (CIT) rate has been slashed, Vietnamese economic experts have warned.The sweeping tax reforms, signed into law by President Donald Trump on December 22, include reductions in the CIT rate from 35 per cent to 21 per cent and a minimum of 10.5 per cent rate on any foreign profits US companies send home.The tax overhaul should encourage corporations to relocate or build new operations in the US instead of overseas, where the CIT rate is often lower.The US Government also hopes that US companies will repatriate their foreign cash piles given the attractive 10.5 per cent tax rate.Countries where US companies are doing business, including Vietnam, see those benefits as challenges for their respective economies, members of an economic advisory panel to Prime Minister Nguyen Xuan Phuc said in a recent report.“US companies will transfer profits generated from operations in Vietnam back home rather than keeping the money here for re-investment,” said Mr. Vu Viet Ngoan, Head of the panel. “Vietnam’s economy will be impacted if many US corporations follow this trend.”But the bigger concern comes from neighboring economies, not the US tax bill itself, Mr. Ngoan noted.Many countries, including China, have begun to offer new tax incentives to keep US investors, “a trend Vietnam should keep a close eye on,” he said.According to the advisory panel,… [Read full story]
(VEN) - Recently, many foreign invested companies have committed tax evasion, polluted the environment or delayed project implementation. This has become a concerning issue in the society that bothers appropriate authorities. Deputy Minister of Planning and Investment Dang Huy Dong said that in the past the country had very open policies to attract all investors. However, at present, when many foreign investors are aware of Vietnamese strong attraction, we should choose quality investors to exploit our limited natural resources. The quality of investment projects is reflected through investors' sense of responsibility to the environment, the society and their added value…... [read more]
VietNamNet Bridge - Experts have warned that foreign invested enterprises (FIEs) in Vietnam now prefer importing goods to sell domestically instead of setting up production bases in the country. Retailing, not manufacturing Two years ago, the announcement by Sony Vietnam that it will stop production and will import products for domestic sale surprisedmany people. Now people talk more about the "Sony effect". More and more foreign investors have been importing goods and selling them on the domestic market. According to the Ministry of Industry and Trade, in 2010, 525 foreign invested projects were put on the table of management agencies.…... [read more]
The Hanoitimes - Vietnam is now targeting big groups when calling for foreign direct investment (FDI) and directing investors' attention to its key projects The US First Solar Group, one of the biggest energy groups in the world, has been officially present in Vietnam since January 21, 2011, when the group received the investment license to build solar panels with thin-film technology in Dong Nam Industrial Zone in Cu Chi district of HCM City. With the total investment capital of one billion dollars and US$300 million for the first phase of the project , the plant of First Solar is…... [read more]
Vietnam expects disbursements of foreign direct investment to rise by as much as 10 percent in 2012 after forecasting it will be flat at $11 billion this year, Dang Huy Dong, Vice Minister of Planning and Investment said in an interview in Hanoi Tuesday. The actual amount forecast to be disbursed compares to pledged foreign investment that may total $15 billion to $16 billion this year, Dong said, without giving a figure for next year. Vietnam attracted $18.6 billion of committed foreign investment in 2010, according to figures on the ministry's website. The government is struggling to tame inflation, which…... [read more]
Vietnam will soon publicize a list of fields which either forbid or restrict foreign investment under its WTO commitments, local newspaper Vietnam Economic Times reported Thursday. The list, which is being translated from Vietnamese into English, is much likely to be issued in November, the newspaper quoted Pham Manh Dung, head of the Legal Department under the Ministry of Planning and Investment, as saying. Under the list, foreign investment in around a dozen of fields, including banking, insurance, telecommunications, financial services, maritime, advertisement, and real estate business, will be restricted. Specifically, foreign investors will be allowed to hold at most…... [read more]
