Finance Ministry suggests further extending tax payment deadline The Ministry of Finance has submitted a proposal to the Government seeking approval to create a decree expanding the timeframe for tax and land lease payments. The move is expected to ease difficulties faced by enterprises amid the COVID-19 pandemic, especially those in tourism and transportation. Under the proposal, payments of value added tax are to be extended by five months, during which revenue to the State budget will fall by nearly 68.8 trillion VND (2.99 billion USD). Regarding corporate income tax, around 40.5 trillion VND in payments during the first and second quarters will be delayed by three months. Meanwhile, the payment of some 1.3 trillion VND in value added tax and personal income tax from business households and individuals will also enjoy a delay. The ministry suggested extending the deadline for land lease payments in the first installment, valued at about 4.4 trillion VND. The total value of delayed taxes and land lease will amount to 115 trillion VND. Tax agencies allowed delays in tax and land lease payments worth some 87.3 trillion VND last year, for 184,900 taxpayers./. Vietnam to overcome difficulties in 2021 through solidarity: MoIT leader Challenges remain ahead in 2021, but Vietnam will overcome all with solidarity between the political system, businesses, and the people, Politburo member, head of the Party Central Committee’s Economic Commission, and Minister of Industry and Trade (MoIT) Tran Tuan Anh has said. In an interview with the Vietnam News Agency, Anh said that this year, amid the complex developments of the COVID-19 pandemic, the major target defined by the Party, State, and Government continues to be effectively containing the pandemic to protect people’s lives and public health. The country will coordinate with the international community to fight COVID-19 while continuing to recover its economy and return to true normal, …
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VIETNAM BUSINESS NEWS FEBRUARY 6
Exports expected to continue expanding in 2021 EC allows Vietnamese exporters to extend deadline of REX applications In particular, the first month of 2021 reported export revenue of US$27.7 billion, up 0.2% compared to December 2020 and up 50.5% compared to the same month in 2020. Important markets such as the US, China, the EU, and Japan all maintained growth in their demand of between 15 to 111%, compared to the same period in 2020. Deputy Director of the Import and Export Agency under the Ministry of Industry and Trade Tran Thanh Hai said that the lessons learnt from dealing with adverse situations in 2020 will continue to be applied this year. The disruption of the global supply chain due to the COVID-19 pandemic has motivated Vietnamese enterprises to develop solutions to help them survive including enhancing online trading or shifting to the production of goods designed for pandemic prevention and control. The business community has also made efforts to maintain competitiveness, improve product quality, and seek export orders, particularly for key commodities such as phones and components, electronics, computers, footwear, textiles, mechanics, and rice. Rice export, which was a bright spot in agricultural exports in 2020, is facing an opportunity to increase export turnover thanks to high demand around the world and improvements to the quality of Vietnamese rice. Economist Pham Tat Thang commented that enterprises are taking advantage of traditional markets combined with rapid penetration into new markets through free trade agreements in order to take advantage of the new tax incentives therein. With the efforts of authorities and enterprises, total export turnover in 2021 is expected to increase by 4-5% compared to 2020. PV Power to divest subsidiaries and streamline operations PetroVietnam Power (PV Power) has confirmed plans to divest from some of its subsidiaries. PetroVietnam Power Corporation JSC (PV Power, HSX: …
VIETNAM BUSINESS NEWS FEBRUARY 10
HCM City targets domestic market for tourism recovery The Ho Chi Minh City tourism sector this year plans to focus on digitalisation of the industry and promotion of domestic tourism amid a downturn in tourism because of the COVID-19 pandemic. The sector will continue its efforts to boost domestic tourism as the main factor driving the recovery of the tourism industry. The tourism communication and stimulus campaign, ‘Hello Ho Chi Minh City,’ has been implemented to promote the city as a safe, vibrant and friendly destination. Tourism cooperation and linkages between HCM City and the Northeast, Northwest and the Central regions will also serve to boost domestic travel. The city aims to receive 33.5 million domestic visitors this year if COVID-19 remains under control in the country./. Tet sales increase sharply on low prices With a week to go for Tet (the Lunar New Year) sales of goods bought to celebrate the Lunar New Year have increased by 30-40 percent from normal times, according to market observers. They attribute it to prices remaining steady and people’s increasing income at the end of the year. Saigon Co.op’s supermarket chains have managed to meet market demand thanks to early preparation of goods, accurate forecast of demand and discounts, Nguyen Anh Duc, its permanent deputy general director, said. In January sales increased by 37 percent compared to the same period in the previous month, with growth of fresh and processed foods, cosmetics, kitchen appliances, and garments being high, he said. There have been no shortages of goods, especially pork, and no price hikes, he said. Dinh Quang Khoi, head of marketing and customer care at MM Mega Market Vietnam, said customers have bought Tet goods earlier than usual, and retail sales increased by more than 10 percent compare with same periods of last year, while the increase is 5 -6 percent if the wholesale segment is included. Shopping malls in Ho Chi Minh City like Vincom Central …
