Viet Nam is expected to remain a magnet for foreign direct investment (FDI) from sources seeking to diversify their production.In a recent article released by The Banker, an international financial affairs publication owned by The Financial Times, Viet Nam weathered the COVID-19 pandemic better than most south-east Asian economies.
The Ministry of Finance officially submitted Report 43/TTr-BTC to the Government on a draft decree on the extended deadline for payment of VAT, CIT, PIT and land rent in 2023. Notably, the report had some changes compared to the original draft, including the deadline extension for VAT payment in 2023, starting from March instead of January 2023.
Credit institutions and foreign bank branches are now allowed to restructure the repayment terms to support clients struggling with production and business expenses. The State Bank of Vietnam (SBV) on Sunday issued Circular No. 02/2023/TT-NHNN stipulating the restructuring of repayment terms and keeping the debt group of credit institutions and foreign bank branches unchanged.
The Government issued Decree No. 12/2023/ND-CP dated April 14, 2023 on time extension for payment of value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent in 2023.
The Ministry of Finance has recently put forward a proposal to the government to bring down value-added tax (VAT) from 10 per cent to 8 per cent for a number of goods and services to boost the economy.
Interest rates on the interbank market, the open market operation (OMO) channel and commercial banks have all decreased after the State Bank of Vietnam (SBV) cut several policy interest rates last week.
Vietnam is studying and adjusting its investment policies to adapt to the global minimum corporate income tax which is scheduled to be applied from 2024, said Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.
Accordingly, the discount rate has been reduced from 4.5 per cent per year to 3.5 per cent per year while overnight electronic interbank rate and interest rate for loans to offset capital shortages in clearance between the central bank and commercial banks have been also decreased from 7 per cent per year to 6 per cent per year.