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Doing Business in Vietnam 2019

With the increasing trends in economic integration, it is normal that overseas organizations and foreign individuals generate income from doing business in another country rather than their home countries. In Vietnam, if a foreign organization earns income in Vietnam through providing services, or selling goods together with services, or trading, its income will be subject to Vietnamese Withholding Foreign Contractor Tax (FCT).

With the increasing trends in economic integration, it is normal that overseas organizations and foreign individuals generate income from doing business in another country rather than their home countries. In Vietnam, if a foreign organization earns income in Vietnam through providing services, or selling goods together with services, or trading, its income will be subject to Vietnamese Withholding Foreign Contractor Tax (FCT).

Update on new regulations and important tax policies

Tariff War and Relocation of Global Supply Chain

Tax Newsletter No.5 |June 2019

On Friday the British Ambassador HE Gareth Ward addressed members of the British Business Group Vietnam on the UK’s new industrial strategy and opportunities in line with the Vietnamese Governments Industry 4.0 Strategy. I quote below

Grant Thornton Vietnam is pleased to announce the release of the results of our 18th survey - “Private Equity in Vietnam- Catching up and getting ahead”. The survey was conducted in March 2019.

Tax Newsletter No.4 |April 2019

In this newsletter, Grant Thornton Vietnam would like to update the important regulations and tax policies as follows:

Whilst we have talked about the significant potential benefits for Vietnam of membership of the Comprehensive and Progressive Agreement for Trans Pacific Partnership (“CPTPP”) the flip side is that Vietnam has also to deliver on some fairly tough requirements and commitments under the signed Agreement.

The Government has over the last 12 months been highlighting the lack of linkages between the foreign invested sector and the domestic sector, enabling the growth of domestic companies and enabling them to participate in the global supply chain. The Government has also signaled their intention to focus more on higher value added investment into the manufacturing sector to ensure sustainability and higher productivity growth.

2018 saw Vietnam achieve or exceed all socio economic forecasts for the year and this accompanied by the high level of business confidence, maybe with the exception of the construction industry, augers extremely well for 2019. GDP growth exceeded the target of 6.8% recording an 11 year high of 7.08% putting Vietnam as one of the strongest growth economies in Asia and the world. The strongest driver for GDP growth were the manufacturing industries with a growth figure of 12.98% . At the same time inflation remained at under 4%.

This was the theme of the semi-annual plenary session of the Vietnam Business Forum (“VBF”) held in Hanoi, on Tuesday December 4th, which was attended in full by the Prime Minister Nguyen Xuan Phuc. This was also the 21st year of the VBF which was established under the auspices of the Wortld Bank and IFC together with the Vietnam Chamber of Industry and Commerce to provide a platform for dialogue between the private sector and Government.

Doing Business in Vietnam 2018