Latest News about FIEs
Vietnam Airlines’ airplanes which have been left idle because of Covid-19 could be used to carry cargo, offering benefits to both the air carrier and export companies.
The Ministry of Finance (MOF), suggesting solutions to help the stock market overcome the Covid-19 crisis, has once again proposed allowing foreign-invested enterprises (FIEs) to list on the bourse.
Over the past few decades, many companies worldwide have come to China, seeking a place to set up production bases and do business as they were lured by the country’s low labour costs and enormous domestic consumer market,
The Foreign Direct Investment (FDI) capital flows over the recent five months of 2020 only decreases compared to the same period last year but rises against the same period of the previous years.
Since national reunification in 1975, Vietnam’s economy has grown from strength to strength. Senior economist Nguyen Mai writes about how the economy has developed in that time, with foreign direct investment serving as one of the key driving forces.
As the country faces an unexpected economic crisis, industrial zones are reeling to protect enterprises vulnerable to diseases, especially those labour-intensive businesses that play an important role in the nation’s exports.
The State Bank of Vietnam (SBV) has withdrawn the licences of the representative offices of Kookmin from South Korea and Commonwealth Bank of Australia.
Amidst the complicated developments of the covid-19 pandemic, foreign-invested enterprises are struggling to maintain business as usual, and taking measures to curb the spread of the virus and ensure employees’ health.
Samsung is believed to have great advantages over its rivals as its production base is in Vietnam, not in China, where the Covid-2019 has forced a series of factories to close down.
The growth of FIEs in Vietnam has recently raised increasingly complicated tax concerns. These problems arise primarily from the practical issues of determining the transaction price between FIEs and their related parties.
Only 10 foreign invested enterprises (FIEs) have entered the bourse over the last decade, a very modest figure compared with the tens of thousands of enterprises now operational in Vietnam.
Investors will enjoy more favourable conditions with regards to starting a business, tax, credit access, and investment protection in 2020 buoyed by the Vietnamese government’s latest action plans.
Local authorities are trialing ways to prevent multinationals from structuring affairs in order to divert profits to low tax jurisdictions.
Foreign-invested enterprises will no longer be allowed to ignore their tax obligations as Vietnamese tax departments step up action on duty-dodging businesses.
Vietnam’s import and export value has exceeded $400 billion and is moving towards the $500 billion threshold.
The total collection for the state budget may exceed VND46 trillion may not be good news, because the sources of revenue are uncertain and the collection from enterprises has decreased.
The Politburo recently issued a resolution paving the way for favourable conditions to attract and choose high-quality foreign direct investment into Vietnam.
The problems caused by FIEs, such as transfer pricing and investment under others’ names, have been noted in the Party Politburo’s Resolution 50 for the first time.