Oecd

Vietnam’s economic growth will be twice the global rate, International Monetary Fund (IMF) managing director Kristalina Georgieva said on Saturday, calling the country a 'shining star' in the global market. Vietnam has maintained economic stability and a positive growth rate despite global economic fluctuations, risks, and the severe impact of the COVID-19 pandemic, Georgieva said during a meeting with Vietnamese Prime Minister Pham Minh Chinh in Hiroshima, Japan on the occasion of their attendance at an expanded summit of the Group of Seven (G7) countries. She highly spoke of Vietnam’s socio-economic management policies, adding that the government’s active, flexible, prompt, and effective monetary policies have helped the country maintain its growth rate despite challenges. The IMF will provide consultancy on interest rates and monetary policies to improve Vietnam’s capacity to respond to crises, Georgieva added. For his part, PM Chinh thanked the IMF for its support and … [Read more...] about Vietnam’s economic growth to double global rate: IMF

The global minimum corporate tax, expected to take effect in January next year, will affect large corporations' investment strategies and governments' investment policies, such as Vietnam's. The global minimum corporate tax could impact Vietnam's competitive advantages in attracting foreign investment. Dr. Oliver Massmann, Partner - General Director of Duane Morris Vietnam LLC, shared his views with The Hanoi Times on how Vietnam should respond to ensure its competitiveness. Dr. Oliver Massmann, Partner-General Director of Duane Morris Vietnam LLC Vietnam is urged to apply the global minimum corporate income tax soon to ensure its financial benefits and competitive advantages in attracting foreign investment. Do you agree with this view? Yes, we fully agree with the view that Vietnam must promptly adopt and apply the global minimum tax and feasible and legal mechanisms to ensure its benefits of finance and competitiveness advantages in foreign … [Read more...] about Global minimum tax requires Vietnam to adopt new incentives

MTEX Vietnam, a subsidiary of Japan's Mtex Matsumura Corporation, which makes semiconductor devices and automobile parts. Viet Nam will continue to be the biggest beneficiary of “China + 1”- motivated investments in the years ahead. — VNA/VNS Photo The global corporate minimum tax is unlikely to impede Viet Nam’s FDI inflows given the fact that tax incentives are not the primary attraction for setting up a factory in Viet Nam, Michael Kokalari, chief economist at investment fund VinaCapital, said. In his latest analysis, he said FDI had been one of Viet Nam’s most important economic growth drivers over the last decade. The country had significantly outperformed its regional peers in attracting FDI since the US-China trade war emerged, but there were two potential risks to its future FDI inflows. Firstly, Viet Nam could be losing its competitiveness as an FDI destination versus India, Malaysia and/or Indonesia, and secondly, a new global corporate minimum tax scheme would reduce … [Read more...] about Việt Nam will continue to be prime destination for FDI: VinaCapital

Illustrative image (Photo: VNA) HCM City (VNS/VNA) - The global corporate minimum tax is unlikely to impede Vietnam’s FDI inflow s given the fact that tax incentives are not the primary attraction for setting up a factory in Vietnam, said Michael Kokalari, chief economist at investment fund VinaCapital . In his latest analysis, he said FDI had been one of Vietnam’s most important economic growth drivers over the last decade. The country had significantly outperformed its regional peers in attracting FDI since the US-China trade war emerged, but there were two potential risks to its future FDI inflows. Firstly, Vietnam could be losing its competitiveness as an FDI destination versus India, Malaysia and/or Indonesia, and secondly, a new global corporate minimum tax scheme would reduce Vietnam’s relative attractiveness as an FDI destination by limiting the tax incentives offered to prospective investors. According to Kokalari, FDI companies that invest in Vietnam … [Read more...] about Vietnam will continue to be prime destination for FDI: VinaCapital

Production at Jasan Textile & Dyeing Vietnam. Viet Nam has opened its door for foreign investment for 35 years and provided many incentives for investors. — VNA/VNS Photo The Ministry of Planning and Investment (MPI) is working on designing incentives and measures to support new investment activities amid the upcoming application of the global minimum tax. Viet Nam is one of the countries to join the OECD global minimum tax rule, a minimum rate of tax on corporate income internationally agreed upon and accepted by individual jurisdictions which was introduced in 2021. Each country would be eligible to a share of revenue generated by the tax. On August 4, 2022, the Prime Minister formed a special taskforce led by Deputy Prime Minister Le Minh Khai for the studying and proposal of measures related to the OECD’s deal. MPI Deputy Minister Nguyen Thi Bich Ngoc said that the PM has directed the taskforce to focus on reviewing, completing the related institution and regulations … [Read more...] about MPI builds new investment incentives to match global minimum tax rule

AEON has poured in Vietnam 1.18 billion USD in investment, making the country its largest overseas investment destination (Photo: baodautu.vn) Hanoi (VNA) - Vietnam has yet to lose its advantage as an attractive destination for f oreign investment flows , although in the short term, investors are taking a careful consideration before making their decision, according to Lecturer Nguyen Xuan Thanh from the Fulbright School of Public Policy and Management. In addition to a common trend of decrease over the globe, unnecessary procedures, tax incentives and low licensing are making investors hesitate. However, in the long term, Vietnam remains a country with various advantages in investment attraction, Thanh stressed. Sharing the same view, Michael Kokalari, chief economist at investment fund VinaCapital, said that Vietnam will continue to be a prime destination for FDI, particularly from multinationals looking to produce exports and seeking an alternative and/or … [Read more...] about Vietnam remains leading destination for foreign investment inflows: experts