Reducing 1099 taxes

As foreign direct investment (FDI) business representatives and analysts gathered at an investment forum Wednesday morning, Deputy CEO of Deloitte Vietnam Phan Duc Hoang said that the new global minimum corporate tax was designed to block multinationals from tax avoidance. Starting next year Vietnam is set to apply a 15% tax on profits from multinationals with total revenues of at least EUR750 million ($819 million) in two of the preceding four years. Hoang said if a South Korea-based company that has a factory in Vietnam is paying taxes for less than 15% of its profits, it will be taxed in South Korea to ensure the 15% level is achieved. If South Korea does not also implement the extra tax on the company, other countries that have approved the new global minimum corporate tax, such as Indonesia and Thailand, will have the rights to impose the tax, he added. For this reason, Do Thien Anh Tuan from the4 Fulbright School of Public Policy and Management, forecast that Vietnam will … [Read more...] about Don’t rely on tax incentives for FDI: analysts

A bank employee handles cash. The corporate bond market has flourished with an estimated annual issuance value of over VND500 trillion (US$21.9 billion) in 2021. — VNA/VNS Photo The State Bank of Viet Nam has unveiled a preliminary revision to Circular 16, requesting public input on proposed modifications that would permit credit institutions to procure corporate bonds as a means of boosting liquidity in the corporate bond market. The revision corresponds to Decree 08 of the Government, which went into effect on March 5 and aims to address bottlenecks in the corporate bond market. Circular No. 16/2021/TT-NHNN, issued on November 10, 2021, delineated principles for the acquisition and sale of corporate bonds by credit institutions. The preliminary revision aims to clarify and expound on various components of Circular 16 to avoid ambiguities and gaps. The notable changes include more specific regulations for banks in investing in corporate bonds, such as banks’ responsibility … [Read more...] about SBV’s draft regulations encourage banks to support corporate bond market

A press conference was held by the General Statistics Office (GSO) on Wednesday. Viet Nam’s gross domestic product (GDP) expanded by 3.32 per cent in the first quarter of 2023. — VNS Photo Linh Anh Viet Nam’s gross domestic product (GDP) expanded 3.32 per cent in the first quarter of 2023, the General Statistics Office (GSO) said yesterday. The expansion is nearly the lowest in 13 years, with Q1 of 2020, which recorded growth of 3.21 per cent. Speaking at a press conference, officials from the GSO said that the agro-forestry-fishery sector expanded by 2.52 per cent and contributed 8.85 per cent to the GDP growth. The industry and construction sector contracted by 0.4 per cent, leading to a 4.76 per cent decline in the growth, and the service sector increased by 6.79 per cent to contribute to 95.91 per cent of the overall expansion. In the agro-forestry-fishery sector, agriculture saw a year-on-year increase of 2.43 per cent in added value, forestry 3.66 per cent, and … [Read more...] about Viet Nam’s economy grew 3.32% in Q1, near the 13-year quarterly lowest

Hanoi is known to have more rivers, lakes, ponds, and lagoons than any other city in Vietnam, acting as natural air conditioners to maintain a balanced ecology or being the city's green lung. The Hanoi People's Committee has recently approved a comprehensive list of 3,164 lakes, ponds and lagoons that are now off-limits to reclamation activities, demonstrating the authorities' unwavering commitment to preserving the capital's greenery and environmental sanctity. Cau Giay Lake in Dich Vong Ward, Cau Giay District. Photo: Pham Hung/The Hanoi Times There are 30 districts and towns on the list. Among them, the inner-city district of Hoan Kiem has the lowest number of protected lakes, with only one, while Quoc Oai District has the highest number of protected water bodies, with an impressive 276 lakes, ponds, and lagoons. Other areas with notable numbers include Cau Giay (29), Dong Da (15), Hoang Mai (40), Long Bien (53), and Son Tay Town (199). Drastic actions … [Read more...] about Hanoi determined to preserve its “green lung”

Climate change, rapid urbanization and large-scale construction are the main causes of Hanoi's flooding. Technology and innovation are crucial to protecting the capital city from heavy rains and urban flooding, Nguyen Trong Dong, Deputy Chairman of the Hanoi People's Committee, said on March 28. Tran Thai Tong street in Cau Giay District flooded after heavy rain. Photo: Thanh Hai/The Hanoi Times Speaking at the 50th anniversary of the founding of Hanoi Sewerage and Drainage Co. Ltd., he said the company needs to speed up digitalization and improve performance and governance so that Hanoi can handle 50-55% of total sewage by 2025. Dong said the company needs to review all wastewater management criteria and standards to improve its performance. "The company must strengthen its cooperation with city departments and propose possible solutions to improve the city's wastewater treatment capacity," he added. "The company should also develop plans to … [Read more...] about Technology critical to Hanoi’s urban flooding solution

The CEO and Regional Head, Client Coverage, Americas, Standard Chartered, shared his view on Vietnam's significance for US businesses and why Vietnam is potential for foreign investors. Vietnam has gone from being a frontier economy in ASEAN to a flourishing, cost-effective industrial nation. Firms and investors looking for new markets to grow, source, or manufacture their products – especially in Asia – should consider Vietnam’s long-term potential and stay updated on its opportunities. Steven Cranwell, CEO and Regional Head, Client Coverage, Americas, Standard Chartered. Photo: Standard Chartered In recent years, Vietnam has benefited from the trade tensions between the US and China. With US companies adopting a ‘China plus one’ approach to their supply chains, the percentage of exports from Vietnam to the US has risen by approximately nine percent between 2018 and 2021. It is, however, important to note that Vietnam has been an alternative to China … [Read more...] about The significance of Vietnam for US businesses and why they should take notice: Standard Chartered

In 2008, the US investment bank Bear Stearns, on the verge of collapse, had to be rescued by J.P. Morgan. This marked the beginning of the global financial crisis of 2008, which sent the global economy into a deep recession and caused significant economic damage, including massive employment losses. Patrick Lenain, senior associate at the Council on Economic Policies Today, several banks are once again in trouble. As of March 22, four large banks were in distress. Silicon Valley Bank (SVB), a $212 billion US bank specialising in tech startups, collapsed when it was unable to meet deposit withdrawal requests and had to be taken over by federal regulators. A few days later, Signature Bank, another midsized US bank with assets of $110 billion, also suffered a severe liquidity crisis and was seized by federal regulators. This was followed by First Republic Bank with assets of $205 billion, which was hit by rating downgrades and a tumbling share price and had to be … [Read more...] about Developments for Vietnam to watch in midst of bank crisis

A bowl of daffodils displayed in a porcelain bowl. Photo: Nguyen Khac Tuong Daffodils often appear during the Lunar New Year and on the altars of many Hanoian families. Nguyen Trang, who loves and has extensive knowledge of the flowers, shared that every year since the 1990s, her mother has had to buy a bunch of beautiful daffodils and put them in an antique glass bowl to offer on her grandfather's altar. The hobby of displaying daffodils contributes to preserving traditional culture and bringing it closer to modern life. Today, the hobby has become more common in daily life. People prune flower bulbs from December to the end of April. Daffodil pruning has become popular on occasions such as New Year's Day, Valentine's Day, Women's Day, and Reunification Day. Beautiful bowls of daffodils also appear at weddings, birthdays, and conferences throughout the spring. Currently, many groups have been created for people who are interested in the flowers and enthusiasts join to share … [Read more...] about Tending daffodils is an elegant aspect of Hanoian culture

A vehicle loaded with Vietnam ese goods goes through  Ma Thu Lang Border Gate to enter China .(Photo: VNA) Hanoi (VNS/VNA) - The Ministry of Industry and Trade (MoIT) is seeking public comments on a legal draft amending Decree No. 14 on cross-border commercial activities. The draft aims to plug some loopholes that have been exploited by traders to disguise their commercial activities as cross-border individual transactions (CITs). It is also part of the government's efforts to promote the movement of goods via official channels, putting an end to trade bottlenecks at border gates. The draft stipulates that traders who engage in commercial activities at auxiliary border gates or border crossing points must do so at the gates or points approved by provincial authorities. The traders and their companies are also required to carry a valid passport or equivalent papers while doing the trade. Vehicle drivers, in addition to the papers, are required to have a valid … [Read more...] about Ministry proposes draft on cross-border trade

Australian enterprises, participating in the Australia-Vietnam Energy Transition Business Forum held in Hanoi on Tuesday, said they are willing to help Vietnam develop systems and equipment to produce large energy-storage batteries domestically to reduce their prices. At the forum jointly held by the Australian Trade and Investment Commission (Austrade), the Electricity and Renewable Energy Authority under the Ministry of Industry and Trade, and the Vietnam Electricity Group (EVN), the energy transition of the two countries and Australia’s new energy technology and solutions were introduced. The event was among those to celebrate the 50th anniversary of the diplomatic relations between Vietnam and Australia. Building energy storage systems in Vietnam Renewable energy needs large storage equipment which meets safety standards and is eco-friendly. A typical solution in Australia is the energy storage battery. This is a feasible solution to optimize the renewable energy … [Read more...] about Australian firms willing to transfer energy-storage battery tech to Vietnam