Viet Nam has lowered corporate tax to 20% compared to 22% in Thailand, 25% in Indonesia, and 30% in the Philippines.

The tax rate, applied since January 1, 2016, is part of the Government’s effort to spur business development, build up a nascent entrepreneurial ecosystem and make Viet Nam a startup nation by 2020.

The Government planned to increase the number of operating enterprises to one million by 2020, according to its first resolution on business development issued in May this year.

The Government estimated that private sector would contribute around 48-49% of the GDP and approximately 49% of total social investment capital.

The Government pledged to guarantee stability, consistency, and predictability of policies and improve business environment towards convenience, security and friendliness.

It also ensures equal rights for all enterprises, regardless of types and sectors in opportunities to access resources such as capital, natural resources, land and business investment.

Economic and civil relations shall not be criminalized, the Government committed.

According to Vu Tien Loc, Chairman of the Viet Nam Chamber of Industry and Commerce, the number of newly-established businesses is estimated to surpass 1,000 in 2016.

He said that the Global Entrepreneurship Network has decided to confer the Startup Nation Award to Viet Nam this year, which reflects the recognition of the international community for the attempt to build up an entrepreneurial ecosystem in the country.

VGP