VinaCapital has released an Economist’s Note Looking Ahead at 2024, in which the firm’s Chief Economist, Michael Kokalari, says the introduction of the global minimum tax should have limited impact on Vietnam’s FDI inflows. His key points are Vietnam will find away to work around it and rebate some of

Vietnam issues draft decree re: global minimum tax support fund

the-shiv December 27, 2023

Vietnam’s Ministry of Planning and Investment has released a draft decree outlining the establishment of a support fund to compensate foreign firms subjected to the Global Minimum Tax initiative, The Investor is reporting. Key points The fund will support businesses making high-tech goods or applying advanced technology in their operations

Global Minimum Tax legislation passed in Vietnam, to start Jan 2024

the-shiv November 29, 2023

A top-up tax has been approved by Vietnam’s National Assembly and will see corporate income taxes raised to a minimum of 15 percent in the country, Reuters is reporting. This will take effect from January 1 next year. Legislation set to provide alternative benefits to corporate firms operating in the

🇻🇳 Global Minimum Tax (GMT) finds its way onto current NA sitting agenda

the-shiv November 9, 2023

Whereas it was reported last month that GMT legislation was not ready and therefore would not be presented to the current sitting of the National Assembly (NA), and therefore there would be no GMT in Vientam by 2024, the situation has now changed and it is being reported a resolution

Global Minimum Tax off the cards in Vietnam until 2025

the-shiv November 2, 2023

This was reported by The Investor who referenced a speech from Vu Tuan Anh, a member of the National Assembly’s Finance and Budget Committee. The understanding appears to be, per this article, that firms do not need to pay GMT in their home countries until 2025 and therefore Vietnam still

🇻🇳 Global minimum tax legislation delayed, alt. support for business not ready

the-shiv October 18, 2023

Legislation that would see a number of multinationals in Vietnam pay at least 15 percent tax in Vietnam under the OECD’s Global Minimum Tax (GMT) initiative, has been delayed, Reuters is reporting. State-controlled media is saying that the legislation has not been submitted to the National Assembly, which starts sitting

Standing committee agrees to submit draft resolution on global minimum tax to NA

the-shiv September 29, 2023

The National Assembly’s (NA) Standing Committee, a small group of lawmakers that make key decisions when the NA is not in session, has agreed to submit a resolution on implementing the global minimum tax (GMT) when it sits next in October this year, VN Economy is reporting. The GMT has

Minimum Wage in Vietnam 2024: Your Questions Answered

the-shiv June 28, 2024

Vietnam’s minimum wage is an attractive drawcard for businesses in a broad range of industries. Among the lowest in Southeast Asia, foreign firms may be able to realise real value by making the most of this low-cost labour. That said, the minimum wage should not be conflated with the average

Corporate Income Tax in Vietnam 2024

the-shiv May 25, 2024

There are a number of taxes that foreign business owners in Vietnam should be aware of. One of these taxes is Vietnam’s corporate income tax which is particularly important for foreign firms looking to manufacture in Vietnam. With this in mind, this article runs through what this tax is, what it applies, and the key elements that apply to foreign business persons.

European insurance firm predicts Vietnam top-up tax to have minimal impact on FDI

the-shiv December 7, 2023

Vietnam’s recently passed top-up tax, a response to the Global Minimum Tax, should not impact how attractive Vietnam is to foreign firms, according to Raphaël Cecchi, an analyst with European credit insurer, Credendo. It may, however, “slightly hit Vietnam’s reputation” as a low-tax jurisdiction for foreign firms, he says. He

Vietnam stands to make US$600 million in tax revenue from GMT in 2024

the-shiv November 13, 2023

If a Global Minimum Tax comes into force in all OECD member states from the start of 2024, and Vietnam has a top-up tax in place, the country could benefit to the tune of US$600 million in increased tax revenue a government report has found, The Investor is reporting. In

Mixed messages on future of FDI in Vietnam

the-shiv July 15, 2024

Vietnam has used tax incentives as a financial lever to influence investment trends. Preferential tax rates for foreign projects are available at rates of between 10 to 17 percent, depending on the field and location, with some enjoying special tax rates as low as 5 percent. However, these tax incentives have been significantly diminished by the Global Minimum Tax–about 122 foreign companies have been impacted by the new tax in Vietnam, according to a review by tax authorities…

LG factory complex in Hai Phong set to be completed in 2025

the-shiv July 8, 2024

Of note, in 2013, Trang Due Industrial Park, where the complex is located, gained official approval from the Prime Minister to become part of the Dinh Vu-Cat Hai Economic Zone giving the park access to government incentives only offered to approved Economic Zones. For example, firms in the past have been eligible to pay no taxes for the first four years, and a ten percent tax rate for the following 15 years. That said, in response to the OECD’s Global Minimum Tax initiative, Vietnam’s National Assembly passed Resolution 107 late last year, which will see multinational companies paying less than 15 percent tax, required to make up the difference via a top up the tax mechanism…

‘Limited investment support’ in Vietnam sees big name FDI go elsewhere: MPI

the-shiv July 4, 2024

This stems from the introduction of the Global Minimum Tax which has seen corporate tax incentives significantly diminished for firms operating in Vietnam. An alternative ‘investment support fund’ has been proposed, however, this is yet to be legislated. A December 2023 draft included financial support for training and reimbursements for research and development conducted in Vietnam…

Made in Vietnam: Major Brands and Key Goods

the-shiv August 22, 2024

Over the past two decades, generous tax incentives and an abundance of low-cost labour have made Vietnam a very attractive option for firms looking to diversify their manufacturing supply chains. Specifically, Vietnam’s exports have grown surprisingly fast, with just US$19.9 billion worth of exports in 2002 compared to a whopping

Manufacturing in Vietnam 2024: Ultimate Guide

the-shiv August 13, 2024

Vietnam’s manufacturing sector is in the middle of a boom period. In just over two decades the country has gone from relatively underdeveloped to a thriving hub of activity on the back of a manufacturing sector that has brought millions of jobs to the country. In fact, 86 percent of

Vietnam records win for R&D with new Motorola facility in HCMC

the-shiv June 8, 2024

Back in 2019, Vietnam issued Decree 13/2019/ND-CP, which was designed to drive investment in research and development. To do this, it offered tax breaks, preferential loans, and reductions in land and water fees.

How to Open a Data Centre in Vietnam: Ultimate Guide 2024

the-shiv June 6, 2024

Data centres in Vietnam are becoming more and more common. This is a result of a broader move to digitise the economy as well as several key regulations that require businesses to store the data of Vietnamese users in Vietnam. Opening a data centre in Vietnam for foreign firms or

How to Open a Factory in Vietnam: Ultimate Guide 2024

the-shiv April 24, 2024

Low-cost labour, tax incentives, and a broad drive among manufacturers to diversify their supply chains have seen factories proliferate all over Vietnam. Opening a factory in Vietnam for foreign firms or individuals, however, is not always easy. Not only are there several technical requirements that need to be met, but

Vietnam’s Economy, January 2024: Snapshot

the-shiv February 19, 2024

The start of the new year, as it does most years, heralded an influx of data covering Vietnam’s economy in 2023. Imports and exports were a key focus with Vietnam registering a trade turnover of US$683 billion in 2023 a fall of 6.6 percent over 2022. Of particular interest, however,