Tax increase effect on aggregate demand

An industrial park in the northern province of Ha Nam (Photo: VNA) Hanoi (VNS/VNA) - A number of changes has been proposed to Vietnam's preferential tax policies by the Ministry of Finance (MoF). According to the ministry, measures should be taken to reduce costs for businesses and to improve the investment environment instead of tax benefits. The ministry's proposed changes include a comprehensive review of businesses to put them in different categories based on industries and locations. The ministry said in recent decades, Vietnam has become one of the most attractive destinations for business investments from most global industries. Current tax policies, according to the ministry, have played an important role in it. " Foreign direct investment (FDI) flows into the country has been steadily increasing, despite global economic downturns," said the ministry. However, the ministry said it's time Vietnam conducted a review of its current tax policies to … [Read more...] about MoF proposes changes to preferential tax policies

Great minds from around the world have a wealth of knowledge and want Vietnam to be a digital pioneer, Photo: Cuong Minh At VIR’s forum on digital transformation on March 21, Do Tien Thinh, deputy director of the Vietnam National Innovation Centre (NIC), said that it is crucial to support innovation and help businesses achieve their emission reduction goals. “While technology groups seek to expand their customer base and provide tech solutions, local businesses require digital transformation and innovation,” Thinh said. “In response, the NIC acts as a mediator, connecting private sector businesses with technology solution providers to provide training for human resources in digital transformation and innovation.” The NIC has already collaborated with the likes of Siemens, Google, and Hitachi to implement innovation support programmes at factories. A very visible area of green digital transformation has been in manufacturing, with factories constantly seeking new approaches … [Read more...] about Greener, faster, smarter digital plans

Vietnamese companies prioritize environmentally friendly and sustainable practices as part of their efforts to ensure long-term growth. More than 85% of Vietnam's 500 fastest-growing companies (FAST 500) have committed or plan to comply with environmental, social, and governance (ESG) standards, according to a survey conducted by the Vietnam Report Company (Vietnam Report). Electronics production at SGK Company (Chuong My Industrial Park), a component supplier for Samsung. Photo: The Hanoi Times As the global community continues to prioritize environmentally friendly and sustainable practices, Vietnam is also placing a great deal of emphasis on achieving carbon neutrality by the year 2050. FAST500 companies are aware of the importance of ESG standards and are in the process of adopting this strategy, the report states. Specifically, 14.8% of companies surveyed had initiated and implemented some of their ESG obligations, while 37% had fully planned and … [Read more...] about Over 85% of major Vietnamese companies are committed to ESG standards

FPT Retail is the owner of consumer electronics chain stores FPT Shop and pharmacy chain Long Chau, while Mobile World is the owner of consumer electronics chain stores The Gioi Di Dong (Mobile World) and Dien May Xanh, as well as drugstore chain An Khang, and food and consumer goods chain stores Bach Hoa Xanh. Drugstores of Pharmacity (left) and FPT Retail's Long Chau located next to each others in HCMC's Binh Thanh District. Photo by VnExpress/Quynh Tran According to documents prepared for its coming annual meeting in mid-April, FPT Retail plans to make pre-tax profits of VND240 billion (US$10.17 million) in 2023, down from VND485 billion in 2022, and VND554 billion in 2021. The main reason behind FPT Retail’s low expectations is difficulties at FPT Shop, the company’s retail chain. Last year FPT Shop contributed nearly 70% of FPT Retail’s VND30 trillion in total revenues. With both financing costs and inflation still rising, FPT Retail management has assumed … [Read more...] about Top electronics retailers Mobile World and FPT Retail facing a rough year

International visitors come to Vietnam for tourism purposes, market surveys, and investment. They not only bring about revenue and profit for the aviation and tourism industries, but also are an important factor for economic recovery and development across the country. Bui Doan Ne - Deputy chairman, Vietnam Aviation Business Association With over 70 per cent of international visitors to Vietnam arriving by air, resuming international flight routes promptly will support aviation and tourism, enabling them to recover soon and increase their competitiveness. These are dynamic industries that contribute significantly to the country’s GDP growth and economic development. International tourism to Vietnam has recovered slowly compared to other regional countries due to tight regulations in other countries, particularly China. The conflict in Ukraine has increased fuel costs and travel restrictions to European markets. Difficult economic conditions have also affected … [Read more...] about More welcoming policies will rejuvenate tourism chances