Adjustments to Vietnam’s tax policy have facilitated foreign business investment in Ho Chi Minh City, a workshop in the city heard on January 17.

At the dialogue between officials of the European Chamber of Commerce (EuroCham) in Vietnam and the municipal Department of Tax, representatives cleared up inquiries related to tax levied on cash payments, bank transfers, and tax incentives for firms that have expanded their investment between 2009 and 2014.

Thomas McCelland, tax consultant of EuroCham Vietnam, said corporate income tax in the country has been reduced to 22 percent from 25 percent, and will be 20 percent by 2016 (17 percent for small and medium–sized enterprises). He said this is a positive signal to encourage foreign firms to enlarge their investment in the country.

However, the tax sector needs to offer vital assistance and specific guidance in order to help foreign investors grasp and comply with tax policy, the consultant advised.

Changes in value added tax and corporate income tax will create favourable conditions for enterprises, including those invested by foreigners, argued deputy head of the Tax Department Tran Thi Le Nga.-VNA