MOF PROPOSES VAT REDUCTION TO 8% TO BOOST ECONOMY
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 REDUCE IN ALL MARKETS IN WAKE OF CENTRAL BANK’S POLICY RATE CUT
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 ADJUSTING POLICIES TO ADAPT TO GLOBAL MINIMUM CORPORATE INCOME TAX: OFFICIAL
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.
INTEREST RATES REDUCE IN ALL MARKETS IN WAKE OF CENTRAL BANK’S POLICY RATE CUT
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.
CENTRAL BANK CUTS RATES FOR FIRST TIME IN TWO YEARS
Specifically, the annual rediscount rate shall be lowered to 3.5 percent from 4.5 percent while the annual interest rate for loans to offset capital shortages in clearance between the central bank and domestic banks shall be revised down to 6 percent from 7 percent.
CREDIT GROWTH SLOWING DOWN, RAISING FEAR OF BUSINESS CONTRACTION
The banking system's liquidity is currently in excess with more than VNĐ50 trillion (US$2.1 billion), higher than the SBV’s mandatory requirements. The credit growth quota of banks is also very abundant in the wake of the State Bank of Vietnam (SBV)’s credit growth quota granting early this month.
GLOBAL MINIMUM TAX A HEAD-SCRATCHER FOR VIETNAMESE POLICYMAKERS
As many countries plan to adopt the Global Minimum Tax Rate (GMTR) in 2024, experts are concerned that the entry into force of the rate would discourage foreign companies from locating their operations in low-tax countries.
BIG FOUR BANKS LAUNCH PREFERENTIAL INTEREST RATE LOAN PACKAGES
Accordingly, short-term loans with a term of less than six months until June 30 this year will enjoy preferential interest rates from only 7 per cent per year. The incentive package is applicable to SMEs who borrow from VietinBank for the first time or have not been disbursed any loan within the past six months.
