How to define the value of cross-border services and the purpose of payments for overseas entities remains a big hindrance.(Photo:Vietnamplus) Big tax losses Tran Duong Quy, director of the online ceramics provider BATO Online Business and Technology Co., Ltd expressed disappointment at the fact that the ad charges paid for a Facebook agency were not included in the firm’s balance sheet as the agency did not provide any invoices for transactions. Since its inception in 2014, the BATO, headquartered in Hanoi, has poured some VND8 billion (US$344,000) into online advertising and most of the sum were spent on the ads on Facebook. There have been no tax invoices for the Facebook ad charges as the firm made online transactions and payments and received only confirmation emails. That’s a big hindrance to the firm, Quy complained. Nguyen Nam Binh, deputy head of the Ho Chi Minh City Tax Department reportedly stated that taxing cross-border services is faced with … [Read more...] about New regulations urged for taxing cross-border services
Foreign earned income tax credit
Banks earn increasing profits from services
In the first nine months of the year, the Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank)’s pre-tax profit exceeded the full-year 2017 figure and closed in on the year’s target. — Photo soha.vn In the first nine months of the year, the Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank)’s pre-tax profit exceeded the full-year 2017 figure and closed in on the year’s target. Thanks to a decline in provisioning for risky loans from 36.2 per cent to 29.9 per cent, the profit surged by 47 per cent year-on-year to VND11.68 trillion (US$516 million). Notably, its net profit from services was up 34 per cent to VND2.63 trillion. Explaining the reasons for the impressive results, a bank executive said profits from non-credit activities increased sharply and contributed 30 per cent of the profits. In addition, the lender’s investments became more selective, focusing on effective products, the executive said. Military … [Read more...] about Banks earn increasing profits from services
Vietnam’s listed banks see credit grow 11% in Jan-Sep
The Hanoitimes - It is expected that around VND391 trillion (US$16.76 billion) of credit could flow into the economy in the last quarter of 2018, which will be enough to meet the entire demand of the economy in the remaining months. By the end of September, credit growth of the 14 listed banks was 11% year-to-date, implying that total credit growth of those banks in the third quarter was approximately two percentage points, according to Vietnam Dragon Securities Company (VDSC). The growth, however, varied quite a bit between banks. Particularly, the credit growth of small banks like Vietnam Export Import Commercial Bank (EIB), Kien Long Bank (KLB) or Saigon Hanoi Commercial Bank (SHB) was almost unchanged compared to the end of June. Meanwhile, state-owned commercial banks still had positive credit growth compared to the average of listed banks, with Bank for Investment and Development of Vietnam (BIDV), Bank for Foreign Trade of Vietnam (VietinBank) and Vietnam … [Read more...] about Vietnam’s listed banks see credit grow 11% in Jan-Sep
Brokerage projects VietinBank’s pre-tax profit to reach US$430 million in 2018
The Hanoitimes - Brokerage expected the bank`s provision expense will continue to be high in next five to six quarters and undermine its earnings. Viet Dragon Securities Corporation (VDSC) has released a note forecasting the pre-tax profit of state-run Joint Stock Commercial Bank for Foreign Trade of Vietnam (VietinBank) to reach VND10.1 trillion (US$430 million) in 2018. Illustrative photo. In the first half of 2018, VietinBank's total operating income (TOI) grew 6.2% year-on-year to VND17.3 trillion (US$731.57 million). While net interest income (NII) grew 7% year-on-year and associated income declined 62%, services income became the bank's driver with 32% year-on-year growth. Customer loans and deposits grew 9.7% year-to-date (YTD) and 13.2% YTD, respectively, during the period. The trend is in contrast with last year (when deposits grew slower than loans). Including corporate bonds, credit growth was a mere 7.6% YTD as investing in corporate bond was … [Read more...] about Brokerage projects VietinBank’s pre-tax profit to reach US$430 million in 2018
Banks eye profit goals, despite credit crunch
Banks are confident about meeting their profit targets for 2018 despite the central bank curtailing credit expansion in the second half of the year. The State Bank of Viet Nam (SBV) sets a credit growth limit for each commercial bank depending on the bank’s health at the beginning of the year. Many banks have already used up nearly almost of their assigned credit quota for 2018. LienVietPostBank has had to adjust its profit target down in 2018 from VND1.8 trillion (US$76.60 million) to VND1.2 trillion after SBV Governor Le Minh Hung affirmed the central bank would not adjust the credit growth limits for banks. However, LienVietPostBank is the only bank to lower its profit target to date. Other banks, which also had high credit growth rates in the first half of the year, have so far still kept their targets unchanged. According to industry insiders, the banks were optimistic as they had met more than a half of the annual profit targets in the first half of the year, while the … [Read more...] about Banks eye profit goals, despite credit crunch