DRAFT LAW LIFTS BANKS’ ROLE IN E-COMMERCE
Payments for e-commerce transactions must be made via banks or authorised payment intermediary services, according to the draft of the amended Law on Tax Management. The draft law, which was recently released by the Ministry of Finance (MoF) for recommendation, aims to better manage and collect taxes on e-commerce businesses, which have developed strongly in Việt Nam in recent years.
BANKS CUT DEPOSIT RATES
Many banks have slashed deposit interest rates by 20-40 basis points given their ample liquidity, Tien Phong newspaper reports. Vietnam Prosperity Commercial Bank (VPBank) has lowered rates by 20 basis points for deposits of less than six months, 30 basis points for six- and seven-month tenors, and 40 basis points for savings of between eight and 11 months. This is the third deposit rate cut of VPBank in two months.
STABLE FOREIGN EXCHANGE RATE EXPECTED IN 2018
Some commercial banks appreciated the US dollar after last week’s interest rate hike by the US Federal Reserve (Fed). Experts, however, have said the exchange rate between the US dollar and Vietnamese đồng is likely to remain relatively stable throughout the year.
LOCAL BANKS INVEST MORE IN LONG-TERM BONDS
Commercial banks have been active in the bond market, buying more 30-year Government bonds which they earlier considered risky, according to Forbes Vietnam.
FOREIGN EXCHANGE MARKET TO BE STABLE IN 2018
Commercial banks are optimistic about the foreign exchange market in 2018, noting that the market would be stable with the Vietnamese đồng devaluing slightly by some 0.5-1 percentage points to VNĐ22,710 to VNĐ22,950.
MINISTRY BACKS DOWN ON VAT
Fierce public objections about its proposal to impose value-added tax (VAT) on the transfer of land-use rights have forced the Ministry of Finance to shelve the move.
NEW REGULATION ON REVOCATION OF CREDIT INSTITUTIONS’ LICENSE
The State Bank of Viet Nam has issued Circular No. 24/2017/TT-NHNN guiding the order and procedures for revocation of license and liquidation of assets of credit institutions and foreign bank’s branches.
MINISTRIES PROTEST SPECIAL CONSUMPTION TAX ON SOFT DRINKS
Numerous ministries and associations protested against the Ministry of Finance (MoF)’s proposal to apply a special consumption tax (SCT) of 10-20 per cent on soft drinks.
