Circular 6 loosens some restrictions on lending and debt repayment currency while introducing certain new requirements and restrictions. Besides, it also creates a new legal framework for digital lending activities.
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 strategy gives a number of key solutions, including actively preventing and controlling negative impacts on the environment and environmental incidents, encouraging ecological and circular economic development, green growth, and promoting sustainable production and consumption.
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.
Foreign investors can invest under varying conditions depending on the free trade agreement they rely on. Some investments are allowed without restrictions under one free trade agreement but not under another. Others are allowed under WTO commitments but are restricted under the EVFTA, UKFTA or RCEP; or the other way around.
After the issuance of Decree 153, MOF became aware of certain risks related to non-compliance and/or high-risk financing via corporate bonds. The draft decree intends to lower risks for investors and make the market more transparent. However, with the current draft, Vietnamese companies might be impacted negatively.
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.
As of 1 January 2022, Decree 85 aims to tax Vietnam-sourced income from local individual customers regardless if the merchant is local or foreign and will impact e-commerce activities. A draft Decree related to import and export via e-commerce activities will have a further impact but clarifies certain points as well.
After almost 2 years of limited access, it will become easier for foreigners with a business visa, visa exemption, temporary or permanent residence cards, overseas Vietnamese and their family members to enter Vietnam. Tourists are expected to be able to come to Vietnam later this year without having to join an organised tour.
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.
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