Thailand
Vietnam: Government plans to slash corporate income tax to 15-17%
The Hanoitimes – Prime Minister Nguyen Xuan Phuc affirmed that the government will continue to boost tax policy reforms and reduce corporate tax rate to 15-17 percent from the current 20-22 percent.
It will be among efforts that the government will take to continuously improve Vietnam’s business environment, aimed to join in the group of ASEAN’s leading countries, and meet the OECD Group’s high standards, Prime Minister Phuc said during a recent conference.
“We have worked to meet our commitments to protect intellectual property, innovative ideas and inventions of start-ups,” Phuc said, adding that Vietnam has also put in place many preferential regulations for investment in advanced technology, supporting industries, and high-tech organic agriculture, and other areas that create a lot of employment opportunities.
After making reforms and gaining some achievements in the past seven years, Phuc said that the government will continue to proceed with further reforms.
“We are determined to build an enabling, action-oriented Government in the service of its people and businesses. The State does not take over the work of the market and businesses, and instead focus on creating a favorable environment for development, improving institutional and legal groundwork, enhancing management capacity in order to bring about equal opportunities for all economic sectors,” Phuc said, adding that the State pays attention to training and development of human resource, infrastructure development, and only considers investing into important areas which have proved difficult for private businesses to invest in.
The government will further promote active international integration. From 2018 to 2019, Vietnam will focus on the signing and ratification of 2 new-generation free trade agreements of CPTPP and EVFTA, and at the same time, the effective implementation of 10 FTAs currently in effect and accelerate negotiation of RCEP and other agreements.
“Just with CPTPP and EVFTA coming into effect, Vietnam will have highly preferential, free trade relations with the markets of nearly 40 developed countries. These are considerations that international investors should not pass over,” Phuc noted.
Besides, Phuc affirmed that the Vietnamese government currently prioritizes investing and attracting investment in the vital transport routes. In addition to already funded expressways such as Ho Chi Minh City – Can Tho – Ca Mau, Ha Noi – Hai Phong, Ha Noi – Lao Cai (connecting to Kunming, China), Ha Noi – Lang Son (connecting to Nanjing, China), Vietnam also work to connect the “two corridors, one economic belt” framework with the Belt and Road Initiative.
Vietnam is actively promoting investment in transport infrastructure on the East-West, North-South, and Southern economic corridors, he said.
Furthermore, the government commits to implementing initiatives and is currently translating them into reality through prioritizing investment in connectivity infrastructure to support border trade, investment, tourism, agriculture and economics, as well as other forms of cross-border economic cooperation.
“We also emphasize investing in development of human resource of compatible skills and capacity. All are carried out with a view to achieve inclusive and sustainable development,” Phuc said.
At the conference, Phuc also announced that Vietnam continued to maintain its high economic growth in the top of Asia last year, with inflation controlled at 3.5 percent. The country’s interest and exchange rates were also stable, trade turnover reached a record level of US$425 billion, foreign reserve has exceeded US$60 billion and VN Index surged by 41 percent, ranking among the world’s top three. According to World Bank, Vietnam’s Ease of Doing Business Index last year jumped 14 places to 68th among 190 economies.
At present, there are about 25,000 FDI projects implemented in Vietnam, with total registered investment capital exceeding $320 billion, Phuc said.
After making reforms and gaining some achievements in the past seven years, Phuc said that the government will continue to proceed with further reforms.
“We are determined to build an enabling, action-oriented Government in the service of its people and businesses. The State does not take over the work of the market and businesses, and instead focus on creating a favorable environment for development, improving institutional and legal groundwork, enhancing management capacity in order to bring about equal opportunities for all economic sectors,” Phuc said, adding that the State pays attention to training and development of human resource, infrastructure development, and only considers investing into important areas which have proved difficult for private businesses to invest in.
The government will further promote active international integration. From 2018 to 2019, Vietnam will focus on the signing and ratification of 2 new-generation free trade agreements of CPTPP and EVFTA, and at the same time, the effective implementation of 10 FTAs currently in effect and accelerate negotiation of RCEP and other agreements.
“Just with CPTPP and EVFTA coming into effect, Vietnam will have highly preferential, free trade relations with the markets of nearly 40 developed countries. These are considerations that international investors should not pass over,” Phuc noted.
Besides, Phuc affirmed that the Vietnamese government currently prioritizes investing and attracting investment in the vital transport routes. In addition to already funded expressways such as Ho Chi Minh City – Can Tho – Ca Mau, Ha Noi – Hai Phong, Ha Noi – Lao Cai (connecting to Kunming, China), Ha Noi – Lang Son (connecting to Nanjing, China), Vietnam also work to connect the “two corridors, one economic belt” framework with the Belt and Road Initiative.
Vietnam is actively promoting investment in transport infrastructure on the East-West, North-South, and Southern economic corridors, he said.
Furthermore, the government commits to implementing initiatives and is currently translating them into reality through prioritizing investment in connectivity infrastructure to support border trade, investment, tourism, agriculture and economics, as well as other forms of cross-border economic cooperation.
“We also emphasize investing in development of human resource of compatible skills and capacity. All are carried out with a view to achieve inclusive and sustainable development,” Phuc said.
At the conference, Phuc also announced that Vietnam continued to maintain its high economic growth in the top of Asia last year, with inflation controlled at 3.5 percent. The country’s interest and exchange rates were also stable, trade turnover reached a record level of US$425 billion, foreign reserve has exceeded US$60 billion and VN Index surged by 41 percent, ranking among the world’s top three. According to World Bank, Vietnam’s Ease of Doing Business Index last year jumped 14 places to 68th among 190 economies.
At present, there are about 25,000 FDI projects implemented in Vietnam, with total registered investment capital exceeding $320 billion, Phuc said.
Source: http://www.hanoitimes.vn/economy/2018/04/81E0C43C/government-plans-to-slash-corporate-income-tax-to-15-17/