Decree 35 brings many positive changes to the legal framework for IPs and EZs, addresses various shortcomings of Decree 82 and is expected to attract more investment in IP and EZ development. For example, the requirement of a minimum 60% occupancy rate no longer applies and housing accommodation for employees working in IPs and EZs.
Decree 15 has reduced the VAT rate for many goods and services from 10% to 8%. However, the implementation of this has resulted in some additional burden for companies as it is not possible to include different VAT rates in one VAT invoice. The draft decree addresses this issue.
Circular 21 introduces new domain names: id.vn, io.vn and ai.vn. The first is for individuals only and the other for both individuals and organisations. Upon expiration of a domain name, it will be suspended immediately but it can be renewed within 25 days.
The Draft Decree will impact the practice of e-commerce providers about being compliant with tax submissions. Provisional CIT obligations at the end of any calendar year will favourably impact companies with high revenue in the last quarter. Some changes related to PIT are introduced as well.
The decree results in changes of decisions related to the suspension or temporary reassignment of official duties, the definition of extremely serious cases of corruption has been changed and the periodic relation of office will be applied to more positions.
Circular 5 provides further information on how to define the origin of goods to qualify for reductions under the RCEP. It contains specific provisions on applicable tax differences for beneficiaries of the RCEP, unifying definitions, specifications, requirements, formalities, and tax rates. Thereby facilitating cross-border trade inside the free trade zone, one of the core incentives for RCEP signatories.
Decree 128 on penalising administrative violations in securities and the securities market sector amends some existing penalties and adds a new one as well. Penalties can be given related to issuing shares, selling treasury shares, publishing maximum ownership ratio and the reporting regime.
Resolution 43 sets out the new fiscal and monetary policies to support the Vietnamese program of socio-economic recovery and development. It contains guidance on tax reduction and exemption, steered public investment in various sectors and monetary measures. It will have an impact on businesses and individuals.
Vietnamese pharmaceutical sector has grown significantly over the last decade thanks to positive regulatory changes and rising domestic demand. Watch the Vietnamese Pharmaceutical Market Webinar, a part of BritCham Vietnam's Sector-focused Webinar Series, where we discuss opportunities and challenges within the imported pharmaceutical market in Vietnam.
The circular gives information on who can buy shares (strategic investors, local and foreign investors, employees, trade unions), how shares can be offered (public auction and direct negotiation) and how deposits can be made in foreign currencies. It also contains sample documents.
Decree 80 provides more support to women-owned SMEs or SMEs with a high percentage of female employees and social SMEs. New is also that technology and consulting support can be obtained and specific SMEs can qualify for special interest rates.
Directives 15, 16 and 19 no longer provide guidelines in light of COVID-19. Instead, Resolution 128 outlines how services can be provided and businesses can operate. The country will be divided into red, orange, yellow or green zones with connected possibilities and requirements. The provincial People’s Committees are responsible for implementation.
Vietnam is a dynamic country with an economy that continues to grow and modernise and has a lot to offer. It is a unique country and provides extensive opportunities if you are willing to spend the time to understand the market and the people living and working in it.
Since Vietnam has joined the WTO in 2007, investment opportunities in Vietnam have developed immensely. Nevertheless, there are undoubtedly many challenges in doing business here, some of which we will touch upon the main points in our guide “Doing Business in Vietnam".
In this guide you can find information about:
Ways to invest and available incentives;
Types of legal entities you can setup;
The do’s and don’ts of borrowing or lending money;
Competition law, contract law, intellectual property rights law, the labour code and dispute resolution;
What to do in case of insolvency, bankruptcy, or dissolution; and