Vietnam has demonstrated strong and stable growth in attracting foreign direct investment. Kenneth Atkinson, founder and senior board adviser at Grant Thornton Vietnam, explains how the country can push ahead even further
The Tax Administration Law in Vietnam has brought notable changes to improve tax collection and to keep abreast of changes to the digital economy. Valerie Teo and Nguyen Tan Tai, of Grant Thornton, consider the impact of the new law, effective from July 1, 2020, on e-commerce business in Vietnam.
Companies need to prepare survival plans to navigate the choppy waters ahead with the current situation of COVID-19 outbreak. In the article published on Vietnam Investment Review, Ken Atkinson, founder and senior board advisor at Grant Thornton Vietnam, discussed the impact of on-going pandemic on the business community of Vietnam.
"The domestic sector will be dependent on the timely disbursement of the committed US$ 30 billion4 in public investment, as this will have a multiplier effect on growth. In fact July saw a positive move in this regard with disbursed public investment of US$ 1.97 billion up 51.8% from July 2019.5 All in all, as well as being a leader in the containment of Covid 19, Vietnam is also showing itself a leader in resilience and should end 2020 with one of the highest GDP growth figures, if not the highest, globally. In H1 2020 Vietnam ranked no 5 in terms of % GDP growth" - Founder and Senior Board Adviser, Kenneth M Atkinson shared his professional perspectives and comprehensive insights towards Vietnam's Economy and FDI in H1 2020
Lac Boi Tho and Nguyen Hung Du, of Grant Thornton Vietnam, discuss the tax implications on the income derived from an indirect offshore capital transfer in Vietnam.
Vietnam’s shift from a centrally planned to a market economy has transformed the country from one of the poorest in the world into a lower middle-income country. Vietnam is now considered one of the most dynamic emerging countries in East Asia.1 Vietnam is one of the greatest development success stories of our time.
20 April 2020 What the future impact is of the current pandemic, which is ravaging western developed countries, is yet to be seen, but I am sure that the recovery in Vietnam will be better and faster, than in much of the developed world, if we look at Vietnam’s performance so far.
How is the second-home segment of Vietnam attractive to international visitors? Why Vietnam should be chosen for expats to live in? Vietnam has been one of the top performing inbound tourism markets over the last few years rising from 7.6 million in 2013 and rising to 18.5 million in 2019 with a forecast 20.5 million in 2020 (prior to COVID 19). I In January 2020 we received just under 2 million foreign visitors in one month alone. Much of this raid increase in inbound tourists has come from China, South Korea and Japan who together have contributed more than 50% of the inbound market.
Planning for coronavirus impact
There have been more than 18,000 deaths in the USA alone so far this year from Influenza (CDC) far less than deaths from Covid-19. The Government has been working hard and in addition to efforts on the medical front they are also evaluating on how to help support business. Directive no 11/CT-TTg is a move in this direction and covers abroad range of measures.
It is hard to believe that the EU Vietnam Free Trade Agreement has been in the making for more than 8 years but is now at last nearing implementation with the ratification of the EU Parliament in February 2020. The Vietnamese National Assembly will hopefully ratify the Agreement in May this year.
Further to our letter dated February 6th, we would like to continue our congratulations for the Governments handling so far of the Coronavirus situation (COVID-19) and the measure taken. We would like to thank you, your excellency for publicly used our early letter to support argument and immediate and apt policy. As you are aware, we are sure, that the current situation is having a devastating effect on the industry, in Vietnam.
In spite of continuous improvements, in recent years, productivity in Vietnam remains amongst the lowest in East Asia. The Vietnam Institute for Economic and Policy Research (“VEPR”) has also stressed the need to improve labour productivity.
I attended the Vietnam Business Forum (VBF) plenary session in my capacity as Founder of Grant Thornton and Chairman of the Tourism Working Group. In his address to the Forum Deputy Prime Minister Dung emphasized the need to strengthen links between the FDI and community and local business to help with both economic development and to improve the quality of economic growth, through the application of advanced technology, increased automation, green growth, and the efficient use of energy.
The start of a new decade is a good time to reflect on my 30 years’ association with Vietnam, which began in November 1989. In 1990 Vietnam’s total foreign trade was less than US$ 5 billion and imports were limited to the value of foreign currency generated from exports, the exchange rate was VND 4,300 to US$1, Per capita income was less than US$ 200 per annum, and foreign exchange reserves were non- existent and there few or no overseas remittances back to Vietnam. There was very small foreign direct investment as the first Foreign Investment law was not promulgated until late 1988.