Business

Unprecedented solutions provided for foreign firms in Vietnam: Official

Facing adverse impacts of the COVID-19 pandemic and the world’s economic and political issues, the Ministry of Finance (MoF) has suggested authorities promulgate and issued many unprecedented solutions in terms of taxes, fees, and charges to assist people and businesses, including those from the Republic of Korea (RoK), an official has said.
Unprecedented solutions provided for foreign firms in Vietnam: Official ảnh 1Deputy Minister of Finance Cao Anh Tuan speaks at the dialogue with Korean businesses in Hanoi on February 29. (Photo: VNA)
Hanoi (VNA) – Facing adverse impacts of the COVID-19 pandemic and the world’s economicand political issues, the Ministry of Finance (MoF) has suggested authorities promulgate and issued many unprecedented solutions in terms of taxes, fees, and chargesto assist people and businesses, including those from the Republic of Korea (RoK),an official has said.

DeputyMinister of Finance Cao Anh Tuan made the remarks while addressing a dialogue on taxationand customs policies with Korean businesses in Hanoi on February 29.

He notedthat each year, the MoF handles hundreds of petitions from Koreanfirms about problems during their operations in Vietnam. In response, it has soughtconsultancy and proposed policy amendments and supplements to maximise assistancefor foreign direct investment (FDI) companies.

The issuance and implementation of tax, fee, and charge-related solutions havereceived support and high evaluation from businesses, including Koreans entities, hesaid, adding that such solutions have helped firms weatherdifficulties and stabilise production and business activities.

To respondto the implementation of Pillar 2 on global minimum tax of the Organisation for Economic Cooperation and Development (OECD)’s Base Erosion and ProfitShifting initiative. The MoF has worked withother ministries and sectors to consult with FDI companies, including Korean businesses,to propose the National Assembly issue a resolution on theimposition of top-up corporate income tax under the Global Anti-Base Erosion(GloBE) rules from January 1, 2024, the official added.

Unprecedented solutions provided for foreign firms in Vietnam: Official ảnh 2A Korean business representative speaks at the dialogue. (Photo: VNA)
Tuan went on to say thatthe MoF will continue perfecting mechanisms and policies, step upadministrative procedure reform, and boost comprehensive digitalisation in thefields of taxation and customs to create a more equal, transparent, and optimalenvironment for both domestic and FDI businesses to further develop, createjobs, and contribute to local socio-economic development.

He also expressed his hopethat Korean businesses will also actively seize opportunities to promote theircompetitiveness and grow while complying with taxation and customs regulations tohelp with Vietnam’s development.

Atthe event, representatives of the MoF, the General Department of Taxation, andthe General Department of Customs presented recent taxation and customs results.They also fielded questions from Korean firms about related issues.

As of January 2024, there were 8,058 businesseswith over 50% of their charter capital invested by the RoK, accounting for 28%of all FDI firms in Vietnam. This makes the East Asian nation the biggest amongthe 144 countries and territories investing in Vietnam at present, data from theForeign Investment Agency under the Ministry of Planning and Investment showed.

Over thelast five years, despite challenges caused by the COVID-19 pandemic and adverseimpacts of the global economy, Korean businesses' contributions to the statebudget has continually increased, approximating 175 trillion VND (7 billion USD),according to the Deputy Minister./.
VNA
#Ministry of Finance #Republic of Korea #taxation #customs #Korean businesses #foreign direct investment #FDI #global minimum tax #updated Vietnam news #Vietnamplus #Vietnam News Agency Korea (RoK)
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