VietNamNet Bridge - The Ministry of Finance’s (MOF) recent proposals on raising many kinds of taxes and fees have been facing strong opposition from the public.

While foreign-invested manufacturers have shifted to importing cars for domestic sale, Vietnamese enterprises have increased investments and expanded production, vowing to develop a domestic automobile industry.

VietNamNet Bridge - The proposed asset tax on properties worth VND700 million and more is expected to increase house prices, experts say.

The Ministry of Finance (MOF) is compiling the amended Environment Protection Tax Law. From July, every liter of petrol will be charged an additional VND1,000 in environmental tax.

VietNamNet Bridge - The stock market has shown positive reactions to the disclosure of the government’s intention to slash the corporate income tax (CIT) from 20-22 percent to 15-17 percent.

With the establishment of a working group on the formation of a special committee responsible for managing State capital at enterprises, Vietnam has taken the first step to realize the plan initiated in 2016. 

Car imports to Vietnam have dropped sharply in anticipation of Decree 116 which sets strict regulations for locally assembled automobile businesses as well as importers.

If applying the personal income tax (PIT) rates introduced to the public last August, the state budget revenue would lose VND3.1 trillion a year. 

The Ministry if Finance’s (MOF) decision to reject eight foreign loans with high interest rates totaling $1.2 billion was highly applauded by economists.

The Ministry of Finance (MOF) has sent drafts of tax laws to the Ministry of Justice (MOJ) before being submitted to the Prime Minister and NA for approval in 2018.

The Ministry of Planning and Investment (MPI) has been asked to explain to the National Assembly why ODA (official development assistance) loans have reached a total of VND600 trillion, twice as much as the amount approved by the NA.

VietNamNet Bridge - Analysts believe it is not by chance that Samsung, Ant Financial Services and Facebook  joined the Vietnamese fintech market this year.

VietNamNet Bridge - Analysts have warned that strong brands may disappear once foreign investors buy into Vietnamese companies.

The State Treasury reports that it has fulfilled 84 percent of the year’s capital mobilization plan, but only 8.5 percent of the disbursement plan has been implemented. 

Under a new decree, used auto imports will have no way to enter Vietnam because of high tariffs and strict requirements on maintenance services, creating a golden opportunity for domestic automobile manufacturers.

Vietnam will have to cut the tariff on CBU imports from ASEAN from 30 percent to zero percent in 1.5 months, but state management agencies and manufacturers are still arguing about the import tariff on car parts.

VietNamNet Bridge - Experts estimate that foreign invested enterprises’ (FIEs) transfer pricing causes a loss of revenue of $170 billion a year to Vietnam and developing countries.

VAMA cited difficulties of the Vietnam industry – the small market, small output and high production costs, which all make it more costly to manufacture car parts in Vietnam.

The Ministry of Finance (MOF) has proposed adjusting the rate of the capital assignment profit tax imposed on foreign enterprises in Vietnam in an effort to simplify the process of collection and treatment of corporate income taxes. 

The Ministry of Finance’s (MOF) plan to raise taxes has been facing fierce criticism from economists who believe that the real reason behind the plan is not tax reform, but just money to cover expenditures.