Vietnam to lose $1.88 billion from post FTA import revenue

Contributions from import taxes to the state budget will fall by nearly VND44t trillion ($1.88 billion) in 2020 after several free trade agreements took effect.

Vietnam to lose $1.88 billion from post FTA import revenue


After joining the World Trade Organisation, Vietnam has negotiated and signed on 16 free trade agreements.

Statistics from the Ministry of Industry and Trade show that 12 out of 16 agreements have taken effects.

The negotiation for EVFTA has just completed and three other agreements are still in the negotiation process.

Vietnam has registered high improvement and development after the agreements took effects such as the growth in Chile, India, South Korea and China.

Vietnam also exported more to countries that are also members of the free trade agreements and have complementary goods with Vietnam such as Japan, Australia, and New Zealand.

Luu Manh Tuong, head of the Import and Export Tax Department, said they hadn't been able to calculate the impact on tax duties from the EVFTA yet.

Depending on the negotiation results and commitments, the government will issue policies and the General Department of Taxation, General Department of Customs will use those data to set export and import quota and calculate the impact on tax revenues.

 

According to the Ministry of Finance, the free trade agreements would attract more investment and boost the economy, however, it is also estimated that tax revenue will fall by VND36.34trn (USD1.55bn) in 2019 and VND43.96trn in 2020.

At the Vietnam Business Forum 2019 held in Hanoi on June 26, Mark Gillin, head of VBF's Tax and Customs Working Group, said tax and customs policies played an important role in firms' sustainable development and an important factor in building government credibility.

VBF's Tax and Customs Working Group suggested that the government should have transparent policies for online businesses.

Tien Phong/Dtinews

Top legislator, EU trade commissioner talk about EVFTA

Top legislator, EU trade commissioner talk about EVFTA

Chairwoman of the National Assembly Nguyen Thi Kim Ngan and European Commissioner for Trade Cecilia Malmstrom exchanged ideas related to the signing and ratification of the EU-Viet Nam Free Trade Agreement (EVFTA) 

EVFTA puts pressure on Vietnamese firms to better competitiveness

EVFTA puts pressure on Vietnamese firms to better competitiveness

The EU-Vietnam Free Trade Agreement (EVFTA) is expected to put pressure on Vietnamese enterprises to increase their competitiveness in order to make inroads into the European market.

EVFTA - a lever for Vietnam’s economic growth

EVFTA - a lever for Vietnam’s economic growth

The signing of the EU-Vietnam Free Trade Agreement (EVFTA) in Hanoi on June 30 after six years of negotiation is expected to serve as a lever for the growth of Vietnam’s economy and business community.

 
 

Other News

.
It needs objective remarks for rice export decline
It needs objective remarks for rice export decline
BUSINESSicon  02/05/2021 

There are different remarks over the good harvest and export prices of rice in the Mekong Delta but the strong decline in rice export volume.

Vietnam’s digital economy to hit 52 billion USD by 2025
Vietnam’s digital economy to hit 52 billion USD by 2025
BUSINESSicon  02/05/2021 

Vietnam’s digital economy will likely reach 52 billion USD in value by 2025, according to the e-Conomy SEA 2019 report by Google, Temasek and Bain & Company.

Multiple financial risks still challenge Vietnam
Multiple financial risks still challenge Vietnam
BUSINESSicon  02/05/2021 

Global financial markets have been negatively hit and significantly shaken by the ongoing unpredictable, relentless and complicated developments under the Covid-19 pandemic, leading to continued global financial instability.

Development of supporting industry for automobiles awaits breakthrough policies
Development of supporting industry for automobiles awaits breakthrough policies
BUSINESSicon  02/05/2021 

Automobile sales in Vietnam are forecast to reach 1 million units a year by 2025, opening up substantial opportunities for businesses to develop a supporting industry for the sector.

Local steelmakers red hot on investment
Local steelmakers red hot on investment
BUSINESSicon  02/05/2021 

Over recent months, the steel market has retained positive momentum after its recovery in mid-2020, helping many steel producers record a strong performance in the first quarter of 2021.

Index results spark reforms in Vietnamese metropolises
Index results spark reforms in Vietnamese metropolises
BUSINESSicon  01/05/2021 

Despite strong efforts, major cities like Hanoi and Ho Chi Minh City are still lagging behind in the 2020 Provincial Competitiveness Index, triggering concerns over the efficacy of their reforms.

VIETNAM BUSINESS NEWS APRIL 30
VIETNAM BUSINESS NEWS APRIL 30
BUSINESSicon  30/04/2021 

Central province debuts first Ngoc Linh ginseng plant

Association calls for national gold exchange
Association calls for national gold exchange
BUSINESSicon  30/04/2021 

The Vietnam Gold Trading Association (VGTA) has proposed the establishment of a national gold exchange in Hanoi or Ho Chi Minh City.

Restaurant chains fall into crisis amid pandemic
Restaurant chains fall into crisis amid pandemic
FEATUREicon  30/04/2021 

The Tokyo Deli Restaurant on Nguy Nhu Kon Tum Street in Hanoi closed its doors two months ago for the Tet holiday, but it has now decided to never open again. The long Covid-19 pandemic has hit many restaurants hard.

Amid 'land fever', Can Gio district prohibits civil servants from working as land brokers
Amid 'land fever', Can Gio district prohibits civil servants from working as land brokers
FEATUREicon  30/04/2021 

Land prices in the HCM City suburban district of Can Gio have been soaring following the news that Can Gio will become an inner city district, or a city in the future. The local authorities have prohibited civil servants from acting as land brokers.

Vietnam’s potential to drive agri-food recovery ranks second highest in the region
Vietnam’s potential to drive agri-food recovery ranks second highest in the region
BUSINESSicon  01/05/2021 

As a key pillar of the national economy, Vietnam’s agri-food sector remained resilient during the COVID-19 pandemic and has great potential to drive economic recovery, ranking second in the region.

Multinational supply chain evades small industry
Multinational supply chain evades small industry
BUSINESSicon  29/04/2021 

Foreign investments in Vietnam have the ability to change the economics of many of the country’s support industries, who are continually struggling to be part of the larger supply network.

Four-month FDI totals $12.25 billion
Four-month FDI totals $12.25 billion
BUSINESSicon  29/04/2021 

In the first four months to April 20, foreign investors pumped 12.25 billion USD in Vietnam, equal to 99.3 percent of the amount recorded in the same period last year.

Untapped potential in branded luxury living
Untapped potential in branded luxury living
BUSINESSicon  01/05/2021 

The recent assessment of ranking Vietnam as one of the 10 fastest-growing markets for branded residences worldwide poses questions for the infant market’s actual capacity.

Hanoi developments induce delay fluster
Hanoi developments induce delay fluster
BUSINESSicon  30/04/2021 

Tens of millions of dollars poured into infrastructure together with new planning projects have added vibrancy to Hanoi’s real estate market, 

Construction firms face bankruptcy as steel prices soar
Construction firms face bankruptcy as steel prices soar
BUSINESSicon  29/04/2021 

Local construction firms face the risk of bankruptcy as the price of steel has soared 40 percent recently.

Vietnam looks to promote issuance of Gov’t bonds on int’l market
Vietnam looks to promote issuance of Gov’t bonds on int’l market
BUSINESSicon  29/04/2021 

Experts and economists have proposed to expand the issuance of Government bonds to the international market, 

Billionaire Pham Nhat Vuong builds 'entertainment city', considers billion-dollar deal in the US
Billionaire Pham Nhat Vuong builds 'entertainment city', considers billion-dollar deal in the US
BUSINESSicon  29/04/2021 

Billionaire Pham Nhat Vuong's company has recorded impressive business results despite the Covid-19 pandemic. 

Flower and ornamental plant production on the rise
Flower and ornamental plant production on the rise
BUSINESSicon  28/04/2021 

Flower and ornamental plant production has dramatically developed in recent years, bringing high economic value.

Contract enforcement, bankruptcy filings stall because of lack of regulations
Contract enforcement, bankruptcy filings stall because of lack of regulations
FEATUREicon  29/04/2021 

Vietnam’s judicial agencies seemingly cannot catch up with business environment reform. Two judicial indicators – contract enforcement and business bankruptcy – have not seen considerable improvement.

 
 
 
Leave your comment on an article

OR QUICK LOGIN