FDI flow to the real estate sector has been increasing steadily in the last five years. There are two special characteristics of capital flow. First, most of the foreign investors registering their projects are from Asia. Second, they have recently begun paying attention to the northern market, especially Hanoi, while they previously mostly targeted the Ho Chi Minh City market. Whether the big FDI capital flow into the real estate sector is good or bad remains a hot topic of debate among analysts. While some believe that Vietnam should focus on attracting FDI to the manufacturing and service sectors which can bring advanced technology and generate added value, others believe Vietnam still needs to continue luring FDI to real estate. Su Ngoc Khuong from Savills Vietnam said foreign capital brings additional resources to Vietnam, thus accelerating growth. Foreign investors, with their experience and relationships, bring Vietnam closer to other developed markets in the region. The … [Read more...] about What can US$3.05 billion worth of FDI bring to Vietnam?
Foreign direct investment (FDI) enterprises, which have enjoyed multiple tax incentives, pay the lowest State taxes despite reporting high profits, statistics show. FDI enterprises have achieved the highest profit growth among the economic sectors but pay the lowest taxes FDI enterprises have achieved the highest profit growth among the economic sectors, generating 327.4 trillion VND (14.4 billion USD) in pre-tax profits in 2016, an increase of 17.3 percent on average in the 2010-16 period, according to the latest report by the General Statistics Office (GSO).This amount accounted for 45.9 percent of the total profits earned by businesses across all sectors in 2016. However, they paid the lowest taxes to the State budget, amounting to only 250.9 trillion VND in 2016.State-owned enterprises, comprising the largest number of companies and employees, earned 197.4 trillion VND in 2016, accounting for 27.7 percent of profits earned by all businesses, marking a 9.4 percent rise per … [Read more...] about FDI enterprises pay lowest taxes despite high profits
According to GSO (General Statistics Office of Vietnam)’s February 6 report on the development of businesses in centrally run cities in 2017 and the 2010-2016 period, FDI businesses have achieved the highest turnover growth among economic sectors. They recorded a turnover of around US$216 billion in 2016 and an average growth of 23% in the 2010-2016 period. … [Read more...] about Profitable FDI businesses pay low taxes
Foreign investors pumped in a total of US$77.6 million in the real estate market in January. - Photo baodauthau.vn Foreign investors pumped in a total of US$77.6 million in the real estate market in January, according to statistics of the Foreign Investment Agency. The real estate sector ranked third among 19 sectors with foreign direct investment (FDI) in January, attracting 6.2 per cent of the total registered FDI. Su Ngoc Khuong, investment director at property services firm Savills Viet Nam, said foreign capital would promote the development of the property market in the country. In 2017, the real estate sector attracted $3.05 billion FDI, accounting for 8.5 per cent of the country’s total registered FDI, ranking third in terms of FDI attraction after the manufacturing and processing industry and power distribution sector. According to the General Statistics Office, 1,400 new construction firms were founded in January, up by 21 per cent, together with more than 460 new firms … [Read more...] about Property market gets $77.6mn in FDI in January
It has been 25 years since ANZ first entered the country in 1993, after the introduction of the Law on Foreign Direct Investment (FDI) in 1987, which opened the floodgates for a burgeoning inflow of FDI into the nation. Indeed, the inflow of FDI has changed the face of the local economy. It has bolstered economic growth and opened up a whole new world of opportunities for the local business community as well as the community of foreign-invested enterprises, including ANZ.“I suppose you could say that we correctly forecast this incredible growth when we started 25 years ago,” was the joking assessment of Dennis Hussey, CEO of ANZ Vietnam and ANZ’s Greater Mekong Region head, when asked if the lender had been right about FDI growth from the beginning.With the long-term vision and corporate strategy that set ANZ Vietnam – as well as some of the lender’s other Asian subsidiaries – to shift its focus on the institutional banking sector instead of retail, … [Read more...] about A new route for ANZ as FDI growth hits records