Doing Business in Vietnam 16000319 PDF
Doing Business in Vietnam 16000319 PDF
BTA Bilateral Trade Agreement MOLlSA Ministry of Labor, War Invalids and
Social Affairs
BTO Build Transfer Operate MPI Ministry of Planning and Investment
B.1 - Geography 26
B.2 - Population and labor force 26
B.3 - Language 27
B.4 - Government and political structure 27
B.5 - Time 27
B.6 - Connectivity 28
B.7 - Climate 28
B.8 - Living in Vietnam 28
B.9 - Visas and permits 30
B.10 - Public holidays 31
B.11 - Useful contacts 32
C.1 - Overview 35
C.2 - Government owned industries and privatization 36
C.3 - Investment guarantees 36
C.4 - Forms of enterprises 37
C.5 - Forms of direct investments 38
C.6 - Investment incentives 40
C.7 - Investment licensing/Certification 49
C.8 -Labor and recruitment regulations 55
C.9 - Mergers and acquisitions 57
C.10 - Dispute settlement 58
C.11 - Exit provisions 59
C.12 Intellectual property 59
C.13 - Competition regulations 60
H. Environment ________________________________________________________ 98
Abundant resources
Since it began offshore oil exploration in the 1970s, Vietnam has become a net
exporter of crude oil, while gas and petroleum reserves, coal reserves, and the
harnessing of hydropower electricity provide other readily available sources of
power. Minerals located in Vietnam include iron ore, tin, copper, lead, zinc, nickel,
manganese, marble, titanium, tungsten, bauxite, graphite, mica, silica sand, and
limestone. In addition, Vietnam has played a significant role in the exportation of
agricultural products to the world markets as the world’s largest exporter of
pepper, second largest exporter of coffee and rice, and third largest exporter of
cashews, among other products.
With a view to raising the efficiency of the state-owned sector, the Government
has adopted assertive policy measures to reorganize the sector through
equalization. As a result, more than 3,951 state-owned enterprises were equitized
by the end of 2011.
Exports
Total export turnovers in 2011 reached USD 96.3 billion, rose 33.3% from 2010,
of which the domestic economic sector achieved USD 41.8 billion, up 26.1% and
the FDI sector (including crude oil) gained USD 54.5 billion, up 39.3%. If crude oil
was excluded the FDI sector gained USD 47.2 billion, up 38.4% from last year.
In 2011, 14 exported items had turnovers of over USD 2 billion including Textile
USD 14 billion, increased 25.1% compared to 2010; Oil & Gas USD 7.2 billion, up 5,9%;
telephone and mobile phone and spare parts USD 6.9 billion, increased 197.3%;
footwear USD 6.5 billion, increased 27.3%; seafood USD 6.1 billion, increased 21.7%;
electronic and computer products USD 4.2 billion increased 16.9%; equipments
USD 4.1billion, increased 34,5%; wooden furniture USD 3,9 billion, increased 13,7%;
Rice USD 3,6 billion, increased 12,2%; Rubber USD 3,2 billion, increased 35%;
Coffee USD 2,7 billion, increased 48,1%; precious stone, metal nearly USD 2,7 billion,
decreased 5,2%; means of transports and spare-parts USD 2,4 billion,
increased 51,3%.
Total import turnovers in 2011 were USD 105.8 billion, rose 24.7% from last year,
of which the domestic economic sector achieved USD 58 billion, up 21.2% and the
FDI sector gained USD 47.8 billion, up 29.2%. This was mainly due to imported
machinery and material for domestic production.
The FDI sector has taken a great part in this year’s increase in export-import
turnovers with 39.3% pace for export and 29.2% pace for import. This sector’s export
turnovers (including crude oil) accounted for 56.6% of the country’s total export
turnovers; and its import turnovers accounted for 45.2% of the country’s total import
turnovers.
Trade deficit in 2011 was USD 9.5 billion, equaling 9.9% of total export turnovers.
This was the lowest rate since past 5 years and 2011 was a year with lowest trade
deficit rate against export turnovers since 2002.
Turnovers of exported services in 2011 were USD 8,879 million, up 19% from
2010, of which the tourist service gained USD 5,620 million, up 26,3%; the
transport service USD 2,505 million, up 8.7%. 2011’s turnovers of imported
services were USD 11,859 million, up 19.5% from 2010, of which the transport
service gained USD 8,226 million, up 24.7%; the tourist service USD 1,710
million, up 16.3%. 2011’s trade gap of services was USD 2,980 million, up 21.1%
from 2010 and equaling 33.6% of 2011’s turnovers of exported services.
(Source: GSO, www.gso.gov.vn (Report on 2011 economic development)
A.4 Infrastructure
Road network
With its geography in the shape of the letter “S” stretching vertically from North
to South, Vietnam’s total length of roads is 220,000 km including 17,300 km of over
90 national highways, 21,760 km of provincial highways, 45,000 km of district
highways, 6,650 km of urban roads and the remaining more than 130,000 km of
commune roads. In total, there are 7,440 bridges to be built on national and
provincial highways, of which new permanently built bridges account for more than
60%.
Highway No.1 is the backbone route of the country’s road transport with the total
length of 2,247 km connecting 6 out of 7 economic zones of the country (except for
the Central Highland). This will remarkably helps to increase transportation capacity
and lessen the time.
Vietnam’ second backbone road transport axis is Ho Chi Minh City route, which runs
in parallel with Highway No.1 and goes through the Central Highland. The route is
expected to foster development of the country’s western area. The first phase which
Railway network
Vietnam has 3,142.7 km of railway in all including 9 main lines of 2,632 km in
length, 402.7 km station lines and 108km branch lines. All these are single lines.
Railroads whose gauge is 1000 mm is 2,251 km, accounting for 85.5% while that
of 1435 mm is 161 km, accounting for 6.1% and dual gauge is 220 km, accounting
for 8.4%. There are 1.790 railway bridges with total length of 45.4 km and
31 combined bridges of 11.8 km and 39 tunnels of nearly 11.5 km.
Hanoi - Ho Chi Minh City and Ha Noi - Hai Phong, the two main railway lines,
connect almost all major economic centres in Vietnam except for the Mekong river
delta. Vietnam railway is connected with that of China through such railway lines
as Ha Noi - Dong Dang (Lang Son province) and Ha Noi - Lao Cai. It is planned that
the railway will be developed to connect with that of Cambodia, Thailand,
Malaysia, Singapore and Laos.
Currently, Vietnam is considering to implement the North-South high-speed railway
system with total length of 1,600 km with total investment of more than
USD 30 billion. In the visible future, some old railway lines will be restored and put
into used. It is also planned that some new branch lines will be built especially for
economic development purpose of the Central Highland area.
Inland waterway
Vietnam Inland Waterway system is quite diversified. There are more than
2,360 rivers and canals with a total length of 42,000 km. Out of which, 11,000 km of
inland waterway are being exploited, mainly in the delta areas of Red River (2,500
km) and Mekong River (4,500 km). Waterway lines in the North (mainly include Red
River and Thai Binh River) is affected by hydrographic factors.
In spite of many limitations, waterway transport is still a favorite choice because it
is inexpensive and suitable to certain kinds of goods. Vietnam is now carrying out a
program on upgrade of river ports as well as river bed dredge to improve waterway
transport ability.
Airports
Vietnam has favorable geographical location to develop airway transport and has
become a centre for passenger and goods transportation in the region. Currently,
Vietnam has 20 airports including 5 in the North (major entre-pot is Noi Bai
international airport in Hanoi), 8 in the central area (the most important destination
is the newly built Da Nang international airport), and 7 in the South (major entrepot is
Tan Son Nhat international airport in Ho Chi Minh city). Airports in Ha Noi and Ho Chi
Minh city are capable of receiving the world’s biggest passenger airplanes such as
Airbus A380 and Boeing 747-8.
Vietnam Airlines Corporation is the leading aviation company in Vietnam and
currently owns 49 airplanes and some other hired aircrafts. Apart from 20 domestic
destinations, there are also 41 international destinations including main areas of
East Asia, South East Asia, Europe, America and Australia. Meanwhile, there are
30 airlines which have their destinations in Vietnam. Therefore, it is quite easy to find
an international airline to/from Vietnam.
In 2008 the new Tan Son Nhat international airport was built to increase airway
transportation capacity in the South. The Noi Bai T2 terminal is also under
construction and scheduled to be opened in 2013. It is planned that Long Thanh
international airport, which is about 50 km South East of Ho Chi Minh city, will also
Energy
Vietnam is endowed with abundant natural energy resources, including crude oil, coal,
hydropower, goethermics, bio-enery and solar energy, and nuclear energy is planned
for the future.
Ź Coal
Coal is mostly found in the northern region. Discovered reserves are estimated at
around 6.06 billion tons. Brown coal is also located in the Red River Delta, with the
estimated reserves of about 200 billion tons. In 2005, the output of exploited coal
was 34 millions, reaching 46.8 million tons in 2011.
Ź Electricity
Electricity development is attached great importance during the course of
Ź Power transmission
Power transmission networks have been expanded in line with the development of
power generation in order to increase electricity access nation-wide. The first
North-South 500KV transmission line began operating in 1995 and an unified
national power network has come into being since. In 2005, a second North-South
500 KV transmission line equipped with advanced technology was brought into
operation to facilitate power moderation in different areas of the country and pave
the way for future connection with power networks in the region.
Telecommunication
A boom in telecommunications development has been seen in Vietnam since the
early 1990s, with growth rates rank the second highest in the region, putting it as
one of the most dynamic emerging telecommunications markets in the world with
the total postal and communicational service net income being at USD 8 billion.
With vigorous improvements in infrastructure, telecommunications services have
mushroomed in terms of availablity and quality.
Ź Telephone
Mobile phone services were initially introduced in Vietnam in 1995 and have boomed
since. The number of mobile phone subscribers has increased dramatically, from
22,500 in 1995 to around 9.3 million in 2005, with average annual growth coming in
at more than 80 %. In 2011 the total nominal number of mobile phone subscribers
reached 133.1 million, in which more than 30 million are frequent moblie phone
users and Vietnam also has 15.5 million subscribers for wire-telephone service.
Ź Internet
Vietnam became connected to the internet in 1997 and since then internet
services have developed robustly and become popular in all provinces. By the end of
2011, the number of internet users in the country was more than 32 million,
accounting for 35 % of the population, of which nearly 4.2 million were subscribers
of broadband internet services.
Recently, the Government has undertaken key reforms with a view to create a strong
the financial system, i.e. renovation of the legal framework for the banking sector
including en-action of the Law on the SBV, Law on Credit Institutions and ordinance
on foreign exchange as well as an issuance of implementation guidelines. The SBV has
also issued measures to enhance the soundness of the country’s banks. These laws
and measures help secure loans granted by credit institutions and improve their
financial transparency. The SBV has also reduced its intervention in state-owned
bank’s operation to encourage their commercial orientation, leading to a
diversification of the financial system.
During 2005 - 2010, banking sector experienced dramatic growth in both quantity
and total assets. Credit and deposit share of SOCBs have gradually shrunk facing
aggressive competition from JSCBs in 5 recent years. In 2011, the restrictions on
mobilizing VND on joint-venture and foreign banks (JVBs & FBs) was lifted, which
enabled an equal playing field for both foreign and domestic banks and SOCBs and
JSCBs.
Despite the affect from the 2008 financial crisis, Vietnamese banks have managed to
maintain good profit growth, reflecting in the average growth of top eight banks in
2008, 2009 and 2010 (46%; 59% and 31% respectively). Outperformed banks in this
period were mainly JSCBs, including Eximbank, Military bank, Techcombank and
Maritime bank. Vietinbank is an SOCBs achieving outstanding performance during
2008-2010. Although FBs’ business results were not widely published, its leading
player, HSBC, reported a high NPAT growth of 40% in 2010.
Currency note
The official currency of Vietnam is the VND. Vietnam completed the conversion of
paper banknotes to Polymer banknotes denominated in VND 10,000, VND 20,000,
VND 50,000, VND 100,000, VND 200,000 and VND 500,000 which were issued
from 2004 to 2006. Other small banknotes are issued in paper including VND 500,
VND 1,000, VND 2,000 and VND 5,000.
The first stock exchange of Vietnam was established in July 2000 in Ho Chi Minh
City with two listed companies that is name HOSE in abbreviation, following is the
establishment of Hanoi Stock Exchange - HNX. The market trades in company issued
shares and bonds issued by the Government, credit institutions and corporate. By
the end of December 2011, there are over 750 companies listed on the Hanoi and
Ho Chi Minh stock exchange
The Government has taken measures to develop the market by amending
regulations relating to the capital market, reorganizing authority structures,
accelerating and linking the SOE equalization process to the stock market.
In order to enhance the role of regulators, Decree No. 66/2004/ND-CP placed the
SSC under the direct supervision of the Ministry of Finance (MOF) on 19 February
2004.
In September 2005, the PM increased the cap on total foreign shareholdings on
domestic companies listed on the securities market from 30% to 49% of the total
shares of a listed company, except for listed banks, of which the cap still remains
at 30%. Foreigners purchasing or selling shares in Vietnam’s securities market must
register for a foreign investment management code with the Stock Exchange
Department through a depository bank as prescribed by the SSC. In respect of
bonds listed on the stock exchange, foreign investors are allowed to buy unlimited
units.
Foreign securities institutions who wish to engage in securities businesses in
Vietnam must establish a joint venture company with a Vietnamese partner in
accordance with a SSC-issued license. The maximum foreign holding allowed in such a
joint venture is 49% of the charter capital. Similarly, a foreign investment fund that
wishes to invest in the Vietnamese securities market must be licensed by the SSC.
Vietnam has made major steps forward in its commitments to regional and
international economic integration. Following the introduction of Doi Moi Vietnam
signed an economic and trade cooperation agreement with the EU in 1995, joined
ASEAN in 1995, adhered to CEPT/AFTA in 1996 and became an APEC member in
1998. The Bilateral Trade Agreement (BTA) with the United States was signed in
2000, which resulted in a dramatic increase in the trade volume between the two
countries. Vietnam became the 150th member of the World Trade Organization (WTO)
on January 11th, 2007 and we are also in advanced negotiation stages with 10 other
members including the United States, Japan and Australia etc. to form the
Trans-Pacific Partnership (TPP), an unprecedented multilateral free trade &
investment agreement that aims to further liberalize the economics of the Asia-Pacific
region.
Vietnam's commitments in the WTO increase market access for exports of goods
and services of WTO's members and establish greater transparency in regulatory
trade practices as well as a more level playing field between Vietnamese and foreign
companies. Vietnam undertook commitments on goods (tariffs, quotas and ceilings on
agricultural subsidies) and services (provisions of access to foreign service
providers and related conditions), and to implement agreements on intellectual
property (TRIPS), investment measures (TRIMS), customs valuation, technical
barriers to trade, sanitary and phytosanitary measures, import licensing provisions,
anti-dumping and countervailing measures, and rules of origin.
At present, Viet Nam has established diplomatic relations with 172 countries and
signed 55 bilateral investment agreements and 58 double taxation agreements with
countries and territories. It has economic and trading relations with about
165 countries and territories. Vietnam holds membership in 63 international
organizations and over 650 non-governmental organizations.
The policy of “multi-lateralization and diversification” in international relations has
helped Vietnam to integrate more deeply into the global and regional economies and
increase trade and investment ties with nations all over the world. More importantly,
Vietnam has improved its enable business friendly environment over time.
Vietnam occupies the eastern coastline of the Southeast Asian peninsula, and shares
land borders with China to the north, and Laos and Cambodia to the west. Its
coastline provides direct access to the Gulf of Thailand and the East Sea.
Vietnam has a land area of 331,114 square kilometers. Most of the country is hilly or
mountainous, with flat land representing only about 20 %. The primary topographical
features in the north are highlands and the Red River Delta and the south includes the
central mountains, coastal lowlands and the Mekong River Delta.
Vietnam has a beautiful long sea coast of 3,444 km, which is an ideal condition for
development of maritime industry, trade and tourism in particular and for its
emergence as a shipping centre for and the world in general.
Hanoi, the capital of Vietnam, is located in the north of the country and Ho Chi Minh
City, the largest city in terms of population and economic activity, is situated in the
south. Other major cities include Hai Phong, Da Nang, Hue, Vinh, Quy Nhon, Nha
Trang, Can Tho, and Da Lat…
Diverse geographical structure together with hills, highlands and coastal areas are
suitable for comprehensive economic zones.
As estimated, the country’s average population in 2011 was 87.84 million, up 1.04%
from 2010, of which 43.47 million were men, accounted for 49.5% of the total
population and rose 1.1%; 44.37 million were women, accounted for 50.5% of the total
population and rose 0.99%. Urban population were 26.88 million, accounted for 30.6%
of the total population and rose 2.5%; rural population were 60.96 million, accounted
for 69.4% of the total population and rose 0.41% from 2010.
The labor force aged 15 and above in 2011 had 51.39 million persons, rose 1.97%
from 2010. 46.48 million people were within the labor age group, up 0.12%.
Labor proportion in the sector of agriculture, forestry and fishery decreased
from 48.7% in 2010 to 48.0% in 2011; it rose from 21.7% to 22.4% respectively in
the sector of industry and construction; and in the service sector, it maintained to
be 29.6%.
The unemployment rate within the labor age group in 2011 was 2.27%, of which it
was 3.6% for urban area and 1.71% for rural area (in 2010, corresponding rates
were 2.88%, 4.29% and 2.30%). The underemployment rate within the labor age
group in 2011 was 3.34%, of which it was 1.82% for urban area and 3.96% for rural
area (in 2010, corresponding rates were 3.57%, 1.82% and 4,26%).
B.3 Language
Vietnamese is the official language. The modern written language uses the
Vietnamese alphabet, a Romanized representation of spoken Vietnamese.
While English is increasingly favored as a second language, other languages used to a
lesser extent in Vietnam are French, Russian, Chinese, Khmer and mountain area
languages (Mon-Khmer and Malayo-Polynesian).
B.5 Time
Vietnam local time is seven hours ahead of Coordinated Universal Time, or UTC.
Business hours in Vietnam are generally from 7:30 a.m. to approximately 4:30
p.m., however international companies located in the urban areas operate from 8:00
a.m. to 5:00 p.m. Shops tend to be open from 9:00 a.m. to 9:00 p.m.
B.7 Climate
Northern Vietnam has four seasons: spring, summer, autumn and winter. Spring is
from January to March, summer is from April to end of July, autumn is from August to
end of September and winter is the rest of the year. Autumn is the best and the most
beautiful weather in the north with the average temperature on the day ranging from
0 0 0 0
27 C to 32 C and decreases to 24 C or 27 C at night. In contrast, Central Vietnam is
subject to occasional typhoons. The South is generally warm with two seasons: dry and
wet. During the hottest months at the end of the southern dry season, March through
May, temperatures reach the low 300C. This period is followed by the May - October
monsoon season.
Education
As of end of 2011, Vietnam had 57/63 provinces/cities under central management
met standards for popularizing primary education within right age group and 63/63
provinces and cities met standards for popularizing junior secondary education.
Doing Business in Vietnam | 28
Schools meeting national standard in 2010-2011 school-year rose 20.6% for pre-
schooling level; 11.5% for primary schooling level; 22.3% for junior secondary
schooling level and 24.3% for senior secondary schooling level from last school-year.
The number of teachers for 2010-2011 school-year was 830,900, rose by 12,000
teachers from last school-year. The rate of teachers meeting national standard was
97.6% for primary schooling level; 97.4% junior secondary schooling level and 99.0%
for senior secondary schooling level.
About occupational training: As of end of 2011, Vietnam had 128 occupational
colleges; 308 intermediate vocational schools; 908 vocational centers and over
1,000 other vocational establishments. This year’s newly recruited apprentice
students were 1,860,000 times of persons rose 6.4% from last year, of which
occupational colleges and intermediate vocational schools recruited 420,000 times of
persons; vocational primary schools recruited 1,440,000 times of persons.
Several privately run international schools are located in Hanoi and Ho Chi Minh City
for foreign children. These schools educate children of all nationalities from pre-
school to high school and offer examinations under the International Baccalaureate
program. Standard Aptitude Tests are also available at certain schools. Each school
establishes its own curriculum, but the Australian, American and French education
systems appear to be the most common. Annual tuition at these schools ranges from
USD 5,000 to USD 20,000.
Medical services
As of 2010, Vietnam had 13,467 state owned hospitals and clinics with 246,300
patient beds and over 61,400 doctors.
Hanoi and Ho Chi Minh City are home to international medical facilities and foreign
doctors operating in private practice, providing a range of services from general
medical advice and medical testing, to gynecology, obstetrics and dentistry. The
doctors are internationally trained and come from various countries.
Clinics can arrange medical evacuation, if required, at a cost of upwards of USD
30,000. As a result, foreigners living or traveling in Vietnam are advised to buy
medical and medical-evacuation insurance.
1
Source: figures from Vietnam National Administration of Tourism
2
Under Ministry of Foreign Affairs Decision No. 808/2005/QD-BNG dated 13 April 2005
3
Under Ministry of Foreign Affairs Decision No. 09/2004/QD-BNG dated 30 June 2004.
4
Extracted from the Summary of entry visas exemption in Vietnam issued by the Ministry of Foreign
Affairs.
5
Under Article 3 of Government Decree No. 21/2001/ND-CP dated 28 May 2001.
Work permits
All foreigners working in Vietnam and enterprises and organizations in Vietnam
which employ foreign employees for more than three (3) months are required by law to
obtain a work permit. This is in accordance with their Vietnamese labor contract or
assignment letter, except for the following: those working for less than three months,
owner of a one member limited liability company or a member of a limited liability
company with two or more members, on the Board of Management, entering Vietnam
to offer services, entering Vietnam to work/resolve an emergency technical or
technologically complex situations and foreign lawyers.6
To obtain a work permit, a work permit application form must be submitted with the
required documents attached (as listed on the application form). Work permit
application forms can be obtained from the local Department of Labor, War Invalids
and Social Affairs (DOLISA), which issues the work permits.
The work permit is separate from and in addition to the need for a valid visa. The
employer is required to apply for a work permit; however, the employee is to provide
all the necessary personal paperwork required for the work permit application dossier.
Once issued, the work permit remains the property of the employer and must be
returned to the Labor Department when an employee ceases employment with the
employer.
Work permit can be extended for a maximum duration of thirty six months for each
extension The application to file for extension must be lodged with DOLISA at least
thirty days prior to expiry date.
Residence permits
Temporary Residence permit/cards (TRC) are required for long-term foreigners living
in Vietnam. To obtain a TRC, an individual must apply to the Police Department and
establish that he or she is currently employed in Vietnam by producing a work
permit. The period of TRC will be depended on the length of time on the work permit.
The TRC replaces the need for a visa.
6
Under Article 9 of Government Decree No. 34/2008/ND-CP dated 25 March 2008.
7
Vietnam Bank for Agriculture and Rural Development (AgriBank) and Mekong Housing Bank (MHB).
Partnerships
A partnership is required to have at least two members and the unlimited liability
partners are liable for the obligations to the extent of all their assets.
Private enterprise
A private enterprise is owned by one individual who is liable for all activities of the
enterprise to the extent of all his/her assets. Private enterprises may not issue
any type of security. An individual may only establish one private enterprise.
Joint venture
Fundamentally, the foreign investor and its Vietnamese partner jointly apply to
establish a company. The investor has two ways to create a joint venture: (i)
create a new enterprise (including merger & acquisition); or (ii) participate in an
existing enterprise via the purchase of a proportion of the company’s shares.
A joint venture may be established as a limited liability company with more than
one member, as a joint stock company or as a partnership and is a legal entity
with limited liability established on the basis of a joint venture contract between:
i) A Vietnamese party and a foreign party
ii) A Vietnamese party and a 100% FOE
iii)A joint venture enterprise and a foreign party
iv)A joint venture enterprise and a 100% FOE; or
v) Two joint venture enterprises.
Under BT, the project is transferred to the state on completion of construction and
the State pays the investor by either granting the right to implement another
project or making payment as agreed in the BT contract.
Ź Representative office
In addition to obtaining investment licenses for establishment of a legal entity in
Vietnam, foreign companies which have business relations with Vietnam, or
investment projects in Vietnam, can apply to open representative offices in Vietnam.
A Representative Office (RO) is not an independent legal entity and is not
permitted to conduct direct commercial activities (such as execution of contracts,
direct payment or receipt of monies, sale or purchase of goods, or provision of
services). However, a RO can:
i) Act as a liaison office to study the business environment
ii) Search for trade and/or investment opportunities and partners
iii)Act on behalf of its head office to negotiate and sign contracts for the
supply or purchase of goods and services at the authorization of the
parent company (care needs to be taken for tax purposes)
iv)Supervise and accelerate the implementation of contracts
v) Act on behalf of the parent company to supervise and direct the
implementation of investment projects in Vietnam; and
vi)Publicize and promote its company’s goods and/or services
Tax incentives
Ź Incentives on Corporate Income Tax
With effect from 1 January 2009, the Law on CIT introduces a standard CIT rate
of 25% for both local enterprises and FICs.
Preferential rates
Other than the standard rate, preferential rates of 10% and 20% apply to a number
of investment projects which satisfy certain conditions such as investment in
certain fields of business and/or encouraged geographical locations.
Specifically:
i) CIT at 10% for 15 years:
The preferential tax rate applies to newly-established FICs from
investment projects in areas with specially difficult socio-economic
conditions as listed in the Appendix issued with Decree
No.124/2008/ND-CP dated 11th December 2008 (“Decree 124”)
and in EZs and HTZs or newly-established FICs from investment
projects in the sectors of (i) high-tech; scientific research and
technological development; (ii) investment in development of water
plants, power plants and water supply systems; in bridges, roads and
railways; in airports, seaports and river-ports; in air fields, stations
and other specially important infrastructure works as decided by the
Prime Minister of the Government; and (iii) computer software
products (the “Sectors”).
ii) CIT at 10% for up to 30 years
In the case of newly-established FICs from investment projects in
the Sectors which are on a large scale, with high-tech or new tech
and which have a special need to attract investment, the duration of
applicability of the preferential tax rate may be extended but the
Newly established enterprise in areas of difficult socio- 10 years from the first year of revenue
generation 2 years 4 years
economic conditions
20%
Agricultural service cooperatives and people’s credit fund During the whole operation period N/A N/A
Projects Exemption
Projects inside Ezs 10% within the first 15 years since the commencement of fTax holiday within 4 years since None
production 25% afterwards earning profits
Other taxes
Personal
Import Tax Value Added Tax (VAT) and Excise Tax
Income Tax
Raw materaials and Commodities to Good imported Means of public Goods Some Experts and
materials – not yet form fixed assets into EPZs, transportation manufactured in cases employees in
domestically produced for all projects in processing including bus and imported to non- Ezs
for manufacturing in IPs IPs, EPZs and EZs. enterprises electric tramcars in IPs tariff area in Ezs
and EPZs and EPZs
Tax holiday within 5 Tax holiday for the VAT 0% VAT 0% Exemption from Repay 50%
years whole duration of Excise Tax and VAT VAT reduction
the project
Encouraged Agriculture f Entitled to the lowest rent rate within the land rent
projects bracket prescribed by the Provincial People's
Committee
Agriculture projects eligible f Entitled to the lowest rent rate within the land rent
for investment incentives bracket prescribed by the provincial-level People's
Committee
Agriculture projects eligible Exemption from land and water surface rents
for special investment
incentives
Ź Investment Support:
i) Human resources training
ii) Market development
iii) Consultation services
iv) Science technology application
v) Transportation freight
Licensing authorities
The authorities who are authorized to issue establishment licenses (or Investment
Certificate) to Vietnamese and foreign-owned companies include (i) the Prime
Minister of the Government, who approves the “investment policy of investment
projects in specific areas, (ii) the People’s Committees (PCs) in the provinces and
cities under the central state administration; (iii) the management authorities of
industrial zones, export processing zones, high-tech zones and economic zones in the
provinces and cities under the central state administration (Management Authorities
(MAs); and (iv) the Central authorities for investments in some sectors.
The hierarchy of the investment approval and licensing authority is as follows:
Ź Central authorities
Central authorities issue investment certificates for investments in some sectors,
specifically as follow:
i) Ministry of Planning and Investment issue investment certificates for BOT,
BTO, BT projects;
ii) Ministry of Trade and Industry issues investment certificates for oil & gas
projects;
iii) State Bank of Vietnam issues investment certificates for credit institutions;
and
iv) Ministry of Finance issues investment certificates for insurance projects.
Licensing procedure
Depending on the size and the sector of investment, different licensing and
registration procedures will be applied:
i) Investment registration; or
ii) Investment evaluation
Foreign investors investing in Vietnam for the first time must have an investment
project and carry out either registration or evaluation procedures, in order for an IC
to be issued.
Ź Investment registration
Foreign investment projects with a total invested capital of less than VND 300 billion
(approximately USD 15 million) not falling in a conditional sector are subject to
“investment registration” and foreign investors of such projects must carry out the
procedures for investment registration in order to be granted an investment
certificate. The investment certificate also serves as the business registration of the
corporate entity.
Domestic investment projects with a total invested capital from VND 15 billion to
less than VND 300 billion are also subject to “investment registration”. Subject to a
request of the local investor, the Licensing Authority will issue an investment
certificate to such investor.
Enterprises can subsequently register additional investment projects without the
need to create a separate entity.
The procedure for “investment registration” is set out in Decree 108. Accordingly,
the investor must submit application documents for investment registration to the
Licensing Authority. The Licensing Authority shall check the documents and issue the
Management
Investor Agency (DPI,
BOM)
Ź Evaluation procedures
Any investment project with a total invested capital of VND300 billion
(approximately USD15 million) or more or investment projects falling in conditional
sectors must undergo “an investment evaluation” by the Licensing Authority and
other relevant authorities. There are two different types of evaluation:
i) Evaluation for investment projects regardless of total invested capital
falling into conditional sectors; and
ii) Evaluation for investment projects with total invested capital of VND300
billion or more that do not fall into conditional sectors.
For the evaluation of investment projects with total invested capital of VND 300
billion or more, along with the application documents, the applicant must also submit
an “economic - technical explanation” of the investment project to the Licensing
Authority. This covers the economic - technical explanatory statement, objectives,
scale, location, investment capital, implementation schedule, land use needs, and
technological and environmental solutions of the investment project.
For the evaluation of investment projects falling in conditional sectors, in addition to
the application documents, the investor must also demonstrate compliance with
requirements specific to that conditional sector.
When assessing the application documents, the Licensing Authority may liaise
with other relevant Ministries and authorities in evaluating the proposed investment
project. Items to be evaluated shall comprise:
i) Compliance with master planning/zoning for technical infrastructure,
master planning/zoning for land use, master planning for construction,
master planning for utilization of minerals and other natural resources;
Application dossier
In general, the following documents are required for the establishment of a 100% FOE8:
i) Obtaining the seal and the seal registration
ii) Placing an announcement of its establishment in a print or electronic
newspaper permitted to be circulated in Vietnam in three consecutive
issues
iii)A list of investors in the prescribed format
iv)A report of the financial capability of the investors
v) An economic and technical explanation of the project “Feasibility Study”
vi)An explanation of how the conditions will be satisfied
vii)The investor’s Certificate of Incorporation
8
Detailed guidance on application dossier is available in Decree 108/2006/ND-CP dated 22/9/2006
Minimum salary
In accordance with Decree 70/2011/ND-CP dated 22 August 2011 of the
Government, the regional based minimum wage levels for employees working for
enterprises established under the Law on Enterprises, Vietnam-based foreign-
invested enterprises, the cooperatives, farms, household, foreign organizations
and international organizations from 01 October 2011 is divided into four levels
depending on the location of the enterprises, detailed as follows:
i) For enterprises located in Area I (urban districts of Hanoi, Ho Chi Minh
City, Hai Phong, Dong Nai, Binh Duong, Baria-Vung Tau), the minimum
salary is VND 2,000,000 per month.
The judiciary
The hierarchy of Vietnamese courts include: (i) Supreme People’s Court; (ii)
Provincial People’s Courts; and (iii) District People’s Courts. The courts operate in five
divisions: (i) Criminal; (ii) Civil; (iii) Administrative; (iv) Economic and (v) Labor.
Unlike common law countries, Vietnam does not follow the doctrine of precedence
under which cases decided by judges in the past are used as authority for later cases.
Judgments are based only on legislation and principles of interpretation of the laws.
Running parallel to the court systems is the People’s Procuracy which is responsible
for supervising the operation of judicial authorities and exercising the power of
public prosecution. The People’s Procuracy can lodge protests against a judgment and
ask for its review.
CIT incentives
Tax incentives and criteria for eligibility to tax holidays and reductions are set
out in the CIT regulations and is elaborated in Part C6 of this Guidebook.
Computation of CIT
CIT is computed under the following formula:
Deductibility of expenses
In general, expenses will be deductible provided that they are related to revenue
generation, supported by proper invoices/documentation and not specifically
identified as being non-deductible items for CIT calculation purposes. Examples of
non-deductible expenses include:
i) Depreciation of fixed assets which is not in accordance with the
prevailing regulations
Tax depreciation
Depreciation for tax purposes must follow the Ministry of Finance regulations.
Current regulations on fixed asset depreciation provide three methods for
calculation of fixed asset depreciation. Among the regulatory methods, the
straight-line method is the most common.
Depreciation rates must be in accordance with the Ministry of Finance’s rules. A
brief summary of maximum allowable annual depreciation rates are as follows:Ca
tegories Annual
Accelerated depreciation is possible in certain cases. The accelerated depreciation
rate shall be capped at 2 times higher than the rate set by the Ministry of Finance.
Profit remittance
Foreign investors shall be permitted to remit their profits annually at the end of
the financial year or upon termination of the investment in Vietnam after their tax
obligations in Vietnam are fulfilled. Foreign investors are not permitted to remit
profits if the investee company has accumulated losses.
The foreign investor or the investee company are required to notify the tax
authorities of the plan to remit profits at least 7 working days prior to the scheduled
remittance.
VAT exemption
There are 26 categories of goods and services out of the scope of VAT application.
Examples of these include:
i) Transfer of LURs
ii) Credit services
iii) Financial derivative services
iv) Certain insurance services (including life and non-commercial insurance)
v) Medical services
vi) Cross border leases of drilling rigs, aero planes, and ships which
cannot be produced in Vietnam
vii) Equipment, machinery, spare parts, specialized means of
transportation and necessary materials used for prospecting,
exploration and development of oil and gas fields (which cannot be
produced in Vietnam)
viii)Goods in transit or trans-shipment via the territory of Vietnam; goods
temporarily imported and re-exported and goods temporarily
exported and re-imported; and raw materials imported for production
or processing of goods for export in accordance with production or
processing contracts for export signed with foreign parties
VAT rates
The standard VAT rate is 10%. A 0% rate applies to exported goods and services
subject to certain conditions. A 5% rate exists for “essential” goods and services
such as clean water, fertilizer, teaching aids, books, foodstuffs, medicine and
medical equipment, husbandry feed, various agricultural products and services,
technical/scientific services, rubber latex, sugar and its by products.
Ź Deduction method
Under this method, VAT payable is calculated as the output VAT charged to
customers less the creditable input VAT paid on purchases of goods and services.
Proper bookkeeping and invoices are requisite requirements for applying for this
method.
Ź Direct method
In order to calculate VAT payable under this method, the added value in the period
must firstly be calculated. The applicable VAT rate shall be applied to the added
value to calculate the VAT payable.
Enterprises which fail to satisfy the requirements on book keeping/invoices and
certain deemed goods/services (i.e. trading gold/foreign currency) shall be deemed
to apply for this method.
VAT administrative
Ź VAT code registration
All businesses (including foreign contractors, branches, operating offices of foreign
organizations in certain cases) must register for a VAT code with local tax
The filing due date for monthly VAT return is 20th of the following month. VAT
payable is required to be settled on the same due date.
Ź VAT refund
An input VAT refund is allowed in certain cases (e.g. input VAT credit is larger than
output VAT for 3 consecutive months). A refund may be conducted monthly,
quarterly or annually depending on the circumstances of taxpayers.
Ź Deduction method
According to this method, FCs will file VAT under the deduction method in
accordance with VAT Law and declare CIT on the actual net profits at the standard
tax rate in accordance with CIT Law. The FC can recover the input VAT charged by
the local subcontractors.
In order to adopt this method, FC is required to satisfy the following conditions:
i) FC has a PE in Vietnam or tax residents of Vietnam
ii) The duration of the project in Vietnam is more than 182 days
Ź Direct method
FC who fails to satisfy one of the above-mentioned conditions shall adopt the
direct method. Under this method, VAT and CIT shall be withheld and filed by the
Vietnamese contracting party upon the payment to the FC. VAT and CIT shall be
defined based on a deemed %age of taxable turnover. The deemed tax rates
depend on the nature of service performance and the type of goods supplied. The
VAT element withheld will be available as an input VAT credit to the Vietnamese
contracting party if it supplies goods/services subject to VAT.
The deemed VAT and CIT rates under the Direct Method are as follows:
General services 5% 5%
Transportation 3% 2%
Re-insurance Exempt 2%
try Effective
Ź Export duty
Export duty is only imposed on a few items, basically natural resources, such as
ore and minerals, plants and parts of plants of a kind used primarily in perfumery,
in pharmacy or, and scrap metal. These rates range from 0% to 40%. The basis for
calculating export duties is the free on board (FOB) price, or delivery at frontier
(DAF) price - that is, the selling price of goods at the exporting port as stated in
the contract, excluding freight and insurance costs.
Imports
Ź Import duty tariff
Import duty is generally assessed on an ad valorem (on value) basis. The
Ministry of Finance (MOF) is the authorized Government body which is responsible
for tax policy making and accordingly introducing tariff for imports into
Vietnam. In practice, the policy making process in relation to import tariff is
complex due to the involvement of other ministries, e.g. the Ministry of Trade and
Industry, industry association, and State- owned general corporations.
Import duty tariffs fall into three categories: standard rates, preferential rates
and special preferential rates.
i) Standard rates which apply to commodities from all countries where
no preferential or specially preferential duty treatment is available. The
standard rates are 150% of the Most-Favoured Nation (MFN) rates;
ii) Preferential rates which apply to commodities originated from
countries with which Vietnam has executed MFN treatment in trade
relations, consisting of approximately 164 countries (Vietnam is
presently a member of the WTO and applies preferential rated to
member countries from the accession.);
iii) Specially preferential rates which are stipulated in a particular Tariff
Schedule of the MOF and normally applicable to commodities
originated from countries with which Vietnam has entered into a free
trade agreement. Such FTAs may include the ASEAN Trade in Goods
Agreement (ATIGA), the ASEAN-China Free Trade Area Agreement
(ACFTA), (the ASEAN-Korea Free Trade Area Agreement AKFTA), the
ASEAN-Australia and New Zealand Free Trade Area Agreement
(AANZFTA), the ASEAN-India Free Trade Area Agreement (AIFTA), and
the Agreement on Comprehensive Economic Partnership among Japan
and Asean nations (AJCEP).
Doing Business in Vietnam | 71
To qualify for special preferential rates, the imported goods must be
accompanied by particular Certificate of Origin (C/O). Without the C/O or if goods
are sourced from non- preferential treatment countries, the preferential (i.e. MFN)
rates or the standard rates will be imposed.
Taxable price
i) For domestically produced goods, the taxable price is the selling
price exclusive of SST and VAT, and is determined as follows:
ii) For imported goods: taxable price is the dutiable price (which is the
CIF price) plus import duty
iii) Taxable price for certain goods (i.e. canned beer, etc.) or particular
cases that are provided in SST regulations
SST rates vary from 10% to 70%11 as follows:
9
Motor vehicle, aircraft and yacht are newly added by the Law No.27/2008/QH11 on SST
10
Slot games is newly added by the Law No. 27/2008/QH11 on SST
11
Law No.27/2008/QH11 on SST
Cigars/cigarettes 65
Spirits/wine 20 - 6512
25 - 5013
Automobiles 10 - 60
Fuel 10
Playing cards 40
Votive paper 70
Discotheques 40
Golf clubs 20
Lottery 15
(VND billion)
Level of
12
Applicable up to 31 December 2009
13
New SST rates apply from 1 January 2010
Taxable income
Taxable income includes employment, non-employment and business income.
Employment income covers all income received by the employee from their
employer in cash or in kind, such as:
i) Salary, wages and remuneration, bonus, allowance and subsidies
ii) Income received from participating in professional and business
associations, company’s board of management, management
councils, etc.
iii) Benefits-in-kind paid by the employer including, but not limited to,
housing rental, electricity, water charges and other utilities,
premiums for non-compulsory insurance, certain membership fees
(conditions apply), and other benefits provided in accordance with
applicable laws
Some items of income that were previously non-taxable are now included in
taxable under the new PIT scope including non-employment income, such as
income from capital investment, capital transfer, transfer of real property,
income from winnings, royalties, commercial franchises, inheritance and gifts.
In addition, business income of individuals which was governed by the Law on CIT
is now included under the PIT scope.
Non-taxable income
Non taxable income includes:
i) Interest on money deposited at banks, credit institutions (in Vietnam)
and from life insurance policies
ii) Excess of night shift or overtime salaries/wages over the normal
hours stipulated in the Vietnam Labour Code
iii) Compensation payments from life and non-life insurance policies
iv) Pension payments to individuals under applicable social insurance laws
v) Income from property transfers between husband and wife, parents
and children
vi) Income from inheritance/gifts between husband and wife, parents and
children
vii) One off allowance for relocation to Vietnam
viii)Once per year home leave round trip airfare for expatriate employees
ix) School fee for expatriate employees’ children from primary to high
Doing Business in Vietnam | 76
school in Vietnam
x) Training expenses
xi) Mid shift meal (subject to a cap)
xii) Per diem (subject to a cap)
xiii)Payment for uniform/ telephone/ stationery (subject to a cap)
i) Personal relief of VND 4 million per month or VND48 million per year
is automatically granted to the taxpayer
ii) Dependants’ relief of VND 1.6 million per month per dependant or
VND 19.2 million per pear. Dependant relief is subject to certain
conditions and is not automatically granted to the taxpayer.
Registration form and supporting documentation is required to claim
the dependent relief
iii) Compulsory statutory contributions in accordance with the provisions
of the Law
iv) Contributions to certain charitable, humanitarian and educational
promotion funds
ŹTax rates
The progressive tax rates for resident foreigners and Vietnamese citizens for
business income and employment income are as follows:
1 Up to 60 Up to 5 5
Other taxable income and the relevant tax rate applicable are as follows:
Non-residents are taxed at 20% of their employment income in relation to the work
performed in Vietnam. The following table represents other kinds of taxable
income and the tax rates applicable:
Tax rate
Items
(%)
PIT liability is required to be filed and paid on a monthly basis on the 20th day of
the following month in respect of employment income. The employer is required to
withhold tax from the employee’s income, declare and pay tax to the state budget.
Monthly PIT payments will be reconciled at the end of each calendar year.
An individual is required to file tax directly with the tax authority if his employment
income is paid by overseas organizations and/or individuals. Likewise, non-
employment income is required to be declared by the individual separately per each
type of taxable income and the applicable tax rate as provided in the regulations.
A foreign resident individual terminating their employment contract in Vietnam is
required to submit the tax final return before departure of Vietnam.
Applicability
The VAS applies to state-owned and private Vietnamese companies as well as to FIEs.
The VAS prescribes in detail the method by which transactions are to be accounted
for,including the use of specific accounting codes and account names. The VAS also
prescribes a standard chart of accounts, the format of internal accounting
documentation, the bookkeeping journals for all types of transactions to be used, and
a financial statement and disclosure template. All accounting records are required to
be maintained in the Vietnamese language or both Vietnamese and a foreign language.
The required accounting currency is the Vietnam Dong (VND) and the entity is only
allowed to choose a currency other than the VND as accounting currency if it meets
certain criteria (e.g. major sales and purchase transactions are made in the
chosen accounting currency) as stated in Circular 244/2009/TT-BTC dated 31st
December 2009 issued by the MOF. Any financial statements, which are prepared in
currency other than VND, are required to be converted into VND using interbank
exchange rate as at reporting date and should be certified by an independent auditor.
Any deviations from the VAS require prior approval from the MOF.
VAS 1 Framework
VAS 2 Inventories
VAS 6 Leases
14
Article 29, Chapter IV of Decree No. 160-2006-ND-CP on providing regulations for implementation of
ordinance on foreign exchange control. (Decree No. 160)
15
Article 32 of Decree No. 160
16
Article 4 of Circular No. 20/2011
17
Article 5 of Circular 20/2011/TT-NHNN
Doing Business in Vietnam | 88
of the foreign currency in cash carried into the country. When performing
the transaction for the customer, the authorized credit institution shall
provide its seal for confirming the foreign currency amount deposited to the
foreign currency payment account on the original copy of the entry and exit
Declaration, and keep 1 copy of the Declaration at the same time.
vii) The entry and exit Declaration with confirmation of border Customs shall
only be valid for the individual’s deposit of foreign currency in his foreign
currency payment account within a period of 60 days since the date stated
on the Declaration.18
18
Article 4 of Circular No. 20/2011/TT-NHNN
19
Article 33 of Decree No. 160: Use of VND by non-residents
Doing Business in Vietnam | 89
of a currency of a country with a common border
iii) To collect revenue from other legal sources in Vietnam
iv) To disburse by way of payment for the import of goods or services
v) To disburse by way of sale to an authorized credit institution or exchange
bureau
vi) To withdraw in cash in order to pay salary, bonuses and allowances to
foreigners working for an organization or to spend in a country with a
common border
vii) To disburse for other purposes permitted by law
The use of currencies of countries with common borders with Vietnam to purchase or
sell goods in border areas and in economic zones of border gates must comply with
regulations of the SBV.20
20 Article 35 of Decree No. 160: Use of currencies with a common border with
Vietnam
Doing Business in Vietnam | 90
iv)Disbursement to outside Vietnam of principal, interest and fees on a
foreign medium or long term loan
v) Disbursement to outside Vietnam of capital, profit and other legal revenue
of a foreign investor
vi)Other revenue and disbursement transactions relating to direct foreign
investment activities.21
In addition, Foreign Invested Enterprises (FIEs) may open current accounts in a
foreign currency and VND at authorized banks in Vietnam for their business
transactions.
21
Article 11: Decree No. 160
22
Cicular 18/2011/TT-NHNN
Doing Business in Vietnam | 91
Land use related
. regulations
G. Land Use Related Regulations
The State of Vietnam, on behalf of the entire people, owns and administers land,
and land-users own the rights to use land (“land use right”). Ownership and use of
land are mostly governed by the Land Law 2003, and its amendments and
implementing regulations. On the broadest level of laws, the Civil Code also covers
issues relating to land and property.
Lease term
The lease term must be consistent with the duration of the approved project
provided that it must not exceed 50 years or, in some special circumstances, 70
years. The extension of the lease term may be allowed by the Government upon
expiry if the lessee wants to continue to use the land.
Land Clearance
Under the Land Law, foreign organisations and individuals and overseas Vietnamese
investing in Vietnam are not required to pay compensation and assistance for the
resettlement of residents. However, if these have been paid in advance, it will be
deducted from the relevant rental.
The State will take charge of site clearance and compensation to displaced land users
when withdrawing land for use by foreign organisations and individuals and oversee
ii) Prevent and restrict adverse impacts on the environment from their
activities, including appropriate minimisation and management of waste;
iii)Comply with applicable environmental standards (including technical
standards on the quality of soil, water, air, noise, light and radiation);
iv)Rectify any environmental pollution created by their activities; and pay
environmental taxes and protection charges.
I4. Registration
The LTT provides the right of the parties to register on a voluntary basis with
respect to “unrestricted” TTCs in order to set the ground for the parties to enjoy
incentives given in this Law and other relevant laws”. It is therefore suggested
that parties register TTCs in order to enjoy incentives under the LTT and other
laws.
The LTT requires that “restricted” technology transfers are subject to approval
by the technology management authority (the “Technology Authority”) before the
TTC is entered into by the parties, and then a permit is issued after the TTC’s
execution.
I5. Pricing
Parties are free to agree on the payment price for the technology transfer in
the TTC. Payment may be made in one or a combination of the following methods:
i) A one-off payment or payments in installments in cash or goods;
ii) Transfer of the value of the technology as a capital contribution to
an investment project or to the capital of an enterprise as stipulated by
law;
iii) Other payment methods as agreed by the parties.
I6. Confidentiality
Competent authorities responsible for the issuance of technology transfer permits
and certificates of registration of TTCs are obligated to maintain confidentiality of
the technologies and usiness secrets in application files for issuance of
technology transfer permits and registration of technology transfer contracts.
Various Taxes
23 Law No. National Law on tax management
78/2006/QH11 Assembly
dated 29/11/2006
24 Law No. National Law on Corporate Income
14/2008/QH12 Assembly Tax
dated 12/06/2008
25 Decree Government Providing guidance on the
124/2008/ND-CP implementation of
dated 11/12/2008 Corporate Income Tax Law
26 Circular Ministry of Regulating in detail the
130/2008/TT-BTC Finance implementation of the
dated 26/12/2008 Decree 124 on Corporate
Income Tax
27 Law No. National Law on Value Added Tax
13/2008/QH12 Assembly
dated 12/06/2008
28 Decree Government Regulating in detail the
No.123/2008/ND-CP implementation of the Law
dated 08/12/2008 on VAT
29 Circular Ministry of Providing guidance on the
129/2008/TT-BTC Finance implementation of Decree
dated 26/12/2008 No. 123 on Value Added Tax
(VAT)
30 Law National Law on Special Sales Tax
No.27/2008/QH12 Assembly
dated 28/11/2008
31 Decree 26/2009/ND- Government Providing guidance on the
CP dated implementation of Special
16/03/2009 Sales Tax Law
32 Circular 64/2009/TT- Ministry of Providing guidance on the
BTC dated Finance implementation of Decree
27/03/2009 26 on Special Sales Tax
33 Law The Standing Law on personal income tax
No.04/2007/QH12 Committee of
on Personal Income the National
Tax dated Assembly
05/12/2007
vi) Projects for raising capital and lending capital by People’s credit
funds;
29 Quang Ngai Ba To, Tra Bong, Nghia Hanh and Son Tinh
Son Tay, Son Ha, districts
Minh Long, Binh
Son and Tay Tra
districts, and Ly
Son island district
30 Binh Dinh An Lao, Vinh Hoai An and Phu My
Thanh, Van Canh, districts
Phu Cat and Tay
Son districts
31 Phu Yen Song Hinh, Dong Song Cau, Tuy Hoa and
Xuan, Son Hoa and Tuy An districts
Phu Hoa districts
32 Khanh Hoa Khanh Vinh and Van Ninh, Dien Khanh and
Khanh Son Ninh Hoa districts, Cam
districts, Truong Ranh town
Son island district,
and other islands
of the province
33 Ninh Thuan All districts
34 Binh Thuan Phu Quy island Bac Binh, Tuy Phong, Duc
district Linh, Tanh Linh, Ham
Thuan Bac and Ham Thuan
Nam districts
35 Dac Lac All districts
36 Gia Lai All districts and
town
37 Kon Tum All districts and
town
38 Dak Nong All districts
3 Quoc Te Square,
District 3, Ho Chi Minh City
Tel: 8 3823 9022/3829 0396/
3829 5501
Fax: 8 3823 9021
7 Le Duan Street,
District 1, Ho Chi Minh City
Tel: 8 3825 1763
49 Pasteur Street,
District 1, Ho Chi Minh City
Tel: 8 3822 2872
Fax: 8 3829 3012
7 Le Duan Street,
District 1, Ho Chi Minh City
Tel: 8 3824 4164
Ź People’s Committee
Ben Tre DPI No. 6 Cach Mang Thang Tam Street, Ward
www.dpi-bentre.gov.vn 3 Ben Tre town, Ben Tre Province
Tel: 75 382 1280/381 7358
Fax: 75 382 5543
Binh Thuan DPI No 290 Tran Hung Dao Street, Binh Hung
http://www.binhthuan.gov.vn/s Ward, Phan Thiet City ,
onganh/Sokh_dt/ Binh Thuan Province
Tel: 62 382 1128/382 7170/
383 1890
Fax: 62 382 8656
Kien Giang DPI No. 29 Bach Dang Street, Rach gia town
http://kehoach.kiengiang.gov.v Kien Giang Province
n Tel: 77 386 2037
Fax: 77 386 2037
Nam Dinh DPI 172 Han Thuyen Street, Nam Dinh City
http://www.namdinh.gov.vn Nam Dinh Province.
Tel: 350 364 8482/364 5227
Fax: 350 364 7120
Ninh Thuan DPI The 16th April Street, Phan Rang town
www.ninhthuan.gov.vn/sokhdt Thap Cham, Ninh Thuan Province
Tel: 68 382 2694/382 5880
Fax: 68 382 5488
Phu Tho DPI Tran Phu Street, Tan Dan, Viet Tri City
http://www.dpi.phutho.gov.vn Phu Tho Province
Tel: 210 384 7778
Fax: 210 384 0955/384 7419
Tay Ninh DPI 300 Cach Mang Thang Tam Street, Ward
http://www.tayninh.gov.vn 2, Tay Ninh town,
Tay Ninh Province
Tel: 66 382 2166/066 382 7638
Fax: 66 382 7947
Thai Binh DPI 233 Hai Ba Trung Street, Thai Binh City
http://www.thaibinh.gov.vn/ Thai Binh Province
Tel: 36 383 1774/ 036 383 0437
Fax: 36 383 0326
Thai Nguyen DPI No. 17 Doi Can Street, Thai Nguyen City
http://www.thainguyen.gov.vn Thai Nguyen Province
Tel: 280 385 5688/385 4211/
375 9605
Fax: 280 385 1363
Thua Thien Hue DPI Ton Duc Thang Street, Hue City
www.skhdt.hue.gov.vn Tel: 54 382 2538 /382 4680
Fax: 54 382 1264
Denmark, 19 Dien Bien Phu, Hanoi Poland, 3 Chua Mot Cot St.,
Tel: (84-4) 38231888 Hanoi
Fax: (84-4)38231999 Tel: (84-4)38452027
Fax:(84-4)38236914
Egypt, 63 To Ngoc Van, Hanoi
Tel: (84-4)38294999 Romania, 5 Le Hong Phong,
Fax: (84-4)38294997 Hanoi
Tel: (84-4)38452014
European Union (EU), Fax: (84-4)38430922
56 Ly Thai To, Hanoi
Tel: (84-4)39341300 Russian, 191 La Thanh, Hanoi
Fax: (84-4)39341361 Tel: (84-4)38336991/2
Fax: (84-4)38336995
Finland, 31 Hai Ba Trung, Hanoi Singapore,
Tel: (84-4)8266788 41-43 Tran Phu St. Hanoi
Fax: (84-4)8266766 Tel: (84-4)8233966,
Fax: (84-4)7337627
France, 57 Tran Hung Dao St., Hanoi
Tel. (84-4)39437719 South Africa, 3F, 31 Hai Ba
Fax: (84-4)38437236 Trung, Hanoi
Tel: (84-4)39362000
Germany, 29 Tran Phu St., Hanoi Fax:(84-4)39361991
Tel: (84-4)38430245
Fax: (84-4)38453838 South Korea , Deaha Business
Center, 360 Kim Ma, Hanoi
Hungary, 12thF, Tel: (84-4)38315111- 6
Daeha Business Centre, Fax: (84-4)38315117
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Ź Internal Audit
Ź Internal Controls
Advisory Services
Mr. Son Phu Tran Partners Mr. Nitin Jain
[email protected] [email protected]
Ernst & Young Vietnam Limited Ernst & Young Vietnam Limited
Bitexco Financial Tower Daeha Business Center
28th Floor, 2 Hai Trieu 14th Floor 360 Kim Ma
District 1, Ho Chi Minh City Ba Dinh District, Hanoi
Socialist Republic of Vietnam Socialist Republic of Vietnam
Tel: +84 8 3824 5252 Tel: +84 4 3831 5100
Fax: +84 8 3824 5250 Fax: +84 4 3831 5090
Email: [email protected] Email: [email protected]
Ernst & Young Lao Limited Ernst & Young (Cambodia) Ltd.
Capital Tower SSN Center
6th Floor, 23 Singha Road, 3rd Floor, #66 Norodom Boulevard
Vientiane Capital Sangkat Chey Chumneas,
Lao People’s Democratic Republic Khan Daun Penh
Tel: +856 21 455 077 12206 Phnom Penh
Fax: +856 21 455 078 Kingdom of Cambodia
Email: [email protected] Tel: +855 23 217 824/825
Fax: +855 23 217 805
Email: [email protected]
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