Vietnam’s tax environment needs greater transparency: RoK diplomat hinh anh 1Deputy Finance Minister Vu Thi Mai (Source: VNA)

Hanoi (VNA) – Vietnam needs to create a fairer and more transparent tax environment, said Ambassador of the Republic of Korea (RoK) to Vietnam Kim Do-hyun on September 17.

Speaking at a dialogue on tax and customs policies and administrative procedures with RoK enterprises, Kim said that policies on taxation and customs which ensure consistency will affect foreign investors’ decisions on pouring their capital into Vietnam, as they pay much attention to trade liberalisation and the consistency of policies.

Vietnam’s Deputy Finance Minister Vu Thi Mai agreed that tax and customs policies and administrative procedures always drawn much attention from businesses.

The organisation of the dialogue reflected the determination of the Ministry of Finance, the General Department of Taxation, and the Vietnam Customs to provide assistance for enterprises.

The Ministry of Finance is willing to listen to enterprises’ ideas so as to continue perfecting policies and at the same time answer their queries and create favourable conditions to help them deal with difficulties related to tax and customs policies and administrative procedures, thus helping to boost the business and production activities of RoK enterprises.

Deputy head of the General Department of Taxation Cao Anh Tuan said that investment from RoK enterprises is spread over numerous fields. The number of operating RoK enterprises exceeds 6,000, accounting for 1 percent of the total enterprises operating in Vietnam. Over the past two years, they have contributed 2-3 percent of the total budget collection each year.

They also stand out in terms of online tax declaration and e-tax payment, contributing to the transparent and effective tax management of Vietnam, Tuan stated.

Most RoK enterprises abide by Vietnam’s tax-related laws. However, there were some misunderstandings, he noted, adding that they were then given a warning and instructions on how to follow Vietnam’s tax requirements.

After 26 years of carrying out investment activities in Vietnam, the RoK has become Vietnam’s leading trade partner and largest investor.

The RoK runs 6,760 invalid projects with a total registered capital of 59 billion USD, ranking first in terms of capital and the number of projects among the 125 countries and territories investing in Vietnam. RoK-invested businesses are employing over 700,000 labourers and contribute around 30 percent of Vietnam’s total export turnover. –VNA