MINISTRY OF PLANNING AND INVESTMENT
FOREIGN INVESTMENT AGENCY
DOING BUSINESS IN VIETNAM 2020
Investing in Vietnam, Engaging the world
Abbreviation
3
II. Customs Duty and Procedures
52
Introduction
5
III. Land Rental Incentives
56
A. Country Profile
6
E. Human Resources and Employment 58
B. Trade and Investment
12
F. Foreign Exchange Control
65
I. Trade Agreement
13
Useful websites
68
II. Foreign Direct Investment
13
Deloitte Vietnam
71
C. Setting up an investment in Vietnam
17
Foreign Investment Agency
72
D. Taxation and Customs
25
I. Taxation
26
2
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
ABBREVIATION
APA
Advance Pricing Agreement
FTA
Free Trade Agreement
APEC
Asia-Pacific Economic Cooperation
GDP
Gross Domestic Product
ASEAN Association of Southeast Asian
Nations
GSO
General Statistics Office
BCC
Business Cooperation Contract
IMF
International Monetary Fund
BLT
Build-Lease-Transfer
IRC
Investment Registration
Certificate
BOO
Build-Own-Operate
IP
Industrial Park
BOT
Build-Operate-Transfer
M&A
Mergers & Acquisitions
BT
Build-Transfer
O&M
Operate & Manage
BTL
Build-Transfer-Lease
OECD
Organization for Economic
Cooperation and Development
BTO
Build-Transfer-Operate
PIT
Personal Income Tax
CIT
Corporate Income Tax
PPP
Public-Private Partnership
CPTPP
Comprehensive and Progressive
Agreement for Trans-Pacific
Partnership
RCEP
Regional Comprehensive
Economic Partnership
DTA
Double Taxation Avoidance
Agreement
SST
Special Sales Tax
EPE
Export Processing Enterprise
USD
US Dollar
EPZ
Export Processing Zone
VAS
Vietnamese Accounting Standards
ERC
Enterprise Registration Certificate
VAT
Value Added Tax
EZ
Economic Zone
VND
Vietnamese Dong
FCWT
Foreign Contractor Withholding Tax WTO
FDI
Foreign Direct Investment
World Trade Organization
3
4
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
I
INTRODUCTION
n more than 30 years of social-
a centralized to a market oriented
economy and its 96.92 million-strong
Vietnam has moved from being
population, which features a large
one of the poorest nations in the world
and young workforce as well as
to a lower middle-income country
an increase in disposable income
with a number of convincing social-
in recent years. The Vietnamese
economic achievements. Joining the
Government has done an excellent job
Association of Southeast Asian Nations
(ASEAN) in 1995
Economic Cooperation (APEC) in 1998
2.79 percent (2019).
and the World Trade Organisation
(WTO) in 2007; expanding gross
This guidebook was prepared by the
domestic product (GDP); improving
Foreign Investment Agency of
infrastructure; and a steady increase
Vietnam in cooperation with Deloitte
in foreign direct investment (FDI)
suggest that Vietnam has transformed
into an attractive investment
Vietnam to provide readers with an
overview of the investment climate,
forms of business organization,
destination.
taxation, and business and accounting
Vietnam has been enjoying strong
our best to ensure that information
economic growth. Since 1990,
Vietnam’s GDP per capita growth has
been among the fastest in the world,
averaging 6.4 per cent a year in the
2000s. Despite crisis and uncertainties
in the global environment, Vietnam’s
economy continues to grow, with GDP
expanding by 7.02 per cent in 2019,
and is expected to continue on this path.
Overseas businesses are increasingly
practices in Vietnam. Although we do
contained in this book is current at
the time of writing, the rapid changes
in Vietnam mean that laws and
regulations may change to reflect the
new conditions. We hope that you
find this book useful in your endeavour
to expand your business in Vietnam.
Ministry of Planning and
Investment of Vietnam
Foreign Investment Agency
attracted by the country’s move from
5
A COUNTRY PROFILE
COUNTRY PROFILE
Vietnam’s economy continues its fast growth driven by free trade
agreements (FTAs) with major developed countries and increasingly
deregulated business environment.
VIETNAM
Strategically located at the centre of Southeast Asia with convenient
access to commodity and cultural exchange.
A stable political
environment, and an
attractive business
environment with
high incentives for
foreign investors.
Competitive production
cost compared to
neighboring countries.
A youthful and vibrant
country with digitally-savvy
and well-educated workforce,
a developing culture of
entrepreneurship, and
openness to new ideas.
Fast growing economy with
GDP growth projected to be
between 6% to 7% during
2016-2019 period.
16 FTAs with major
developed markets.
6
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
COUNTRY SNAPSHOT
LOCATION
Southeast Asia
The country borders with China, Laos, Cambodia,
Pacific Ocean and Gulf of Thailand
POPULATION AND WORKFORCE
Population: was estimated at 96.92 million people
Ranked 15th in the list of most populated countries
People of working age in employment: 48.7 million
people (51.2% of total population)
Unemployment rate: 2%
LAND AREA
330,967 sq. km
ECONOMY
3,260 km
Nominal GDP ( 2019): USD 261.9 billion
GDP in 2019 increase by 7.02%,
the highest growth since 2011
GDP per capita (2019): USD 2739.82
5 MUNICIPALITIES & 58 PROVINCES
LANGUAGE
CLIMATE AND WEATHER
BUSINESS HOURS
COASTLINE
North: Hanoi – the capital
Centre: Da Nang City
South: Ho Chi Minh City – the largest city
The climate varies from North to South with three
distinctive climate zones: tropical in the South (rainy
season from April to September; dry season from
October to March); monsoonal with hot and rainy
season in the Centre and North (May to September);
cold and damp in the highlands and the North
(October to March). It is also blessed with plenty of
sun throughout the year.
Vietnamese (official language)
English (taught widely at school as a second language)
Under the Vietnamese Labor Code, normal working
hours should be 8 hours/day, or 40 - 48 hours/week.
CURRENCY
Vietnamese Dong (VND)
Source: General Statistics Office (GSO), Economist Intelligence Unit
7
POLITICAL STRUCTURE
Vietnam is a socialist country under the leadership of the Communist Party
of Vietnam. The 14th National Assembly of Vietnam (term 2016-2021) has
489
Assembly, which is the highest-level representative body of Vietnamese people,
has the power to exercise constitutional and legislative rights and to decide on
critical issues of the country.
8
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
GDP BY SECTOR, 2018
8.0%
Product tax (net)
7.5%
7.08%
7.0%
6.5%
6.68%
6.0%
5.5%
6.21%
5.98%
Agriculture,
Forestry and
Fishery
10%
7.02%
6.81%
15%
41%
Services
34%
5.42%
5.0%
Industry &
Construction
4.5%
4.0%
2018 2019
RETAIL SALES
(billion USD)
250
6.60%
4.09%
3.53%
200
3.54%
2.79%
2.66%
150
111
125
140
154
50
0
2018
2018 2019
2018
MAIN EXPORT PARTNERS, 2018
Germany 11%
243 237
180
150 148
195
173
100
0.63%
162 166
168
South Korea 16%
(share of total)
US 46%
214 211
173
Japan 18%
132 131
China 40%
2018
Source: GSO
9
A COUNTRY PROFILE
REGULATORY REFORM TO IMPROVE INVESTMENT CLIMATE
The regulatory framework has been constantly revised to incorporate more
favorable regulations for businesses to invest and operate in Vietnam. Since the
new Law on Investment and the new Law on Enterprises were passed in 2014,
many other laws, decrees and circulars have been put in place to provide
guidelines for better market access.
2014
- Law No. 67/2014/QH13 on Investment
- Law No. 68/2014/QH13 on Enterprises
- Decree No. 46/2014/ND-CP provides regulations on collection of land rent and water surface rent
- Circular No. 78/2014/TT-BTC guides the implementation of the Law on CIT
- Circular No. 103/2014/TT-BTC provides guidelines for fulfillment of tax liability of foreign entities doing business
in Vietnam or earning income in Vietnam
2015
- Decree No. 118/2015/ND-CP provides guidelines for some articles of the Law on Investment
- Decree No. 96/2015/ND-CP provides guidelines for some articles of the Law on Enterprises
- Decree No. 15/2015/ND-CP on investment in the form of public-private partnership
- Circular No. 38/2015/TT-BTC on customs procedures, customs supervision and inspection, export tax, import tax,
and tax administration
2016
- Law No. 107/2016/QH13 on Export and Import Duties
- Decree No. 134/2016/ND-CP provides guidelines for the Law on Export and Import Duties
- Circular No. 83/2016/TT-BTC guides the implementation of investment incentive programs
- Circular No. 130/2016/TT-BTC on guidelines on some articles of the Law on Value Added Tax, and the Law on
Special Sales Tax
2017
- Law No. 04/2017/QH14 about provision of assistance for small and medium-sized enterprises (coming into force
from January 1st, 2018)
- Decree No.32/2017/ND-CP on state investment credit
- Decision No. 3610A/QD-BCT slashes 675 conditions on business and investment under state management
2018
- Decree No. 119/2018/ND-CP on electronic invoices for sale of goods and provision of services
- Decree No. 09/2018/ND-CP on trading activities of foreign investors
- Decree No. 08/2018/ND-CP on business conditions under State management of the Ministry of Industry and
Trade
- Circular No. 25/2018/TT-BTC on amendments of some articles of Circular 78/2014/TT-BTC and Circular
111/2013/TT-BTC
2019
VIETNAMESE GOVERNMENT’S EFFORTS TO IMPROVE INVESTMENT CLIMATE
- Resolution No. 50/NQ-TW on the direction of completing institutions and policies, improving the quality and
efficiency of foreign investment cooperation by 2030
- Resolution 23-NQ/TW on the national industry development strategy during 2018-2030
- Amended Law on Tax Administration No. 38/2019/QH14 (effective from 1 July 2020)
- Decree No. 14/2019/ND-CP providing guidelines for the law on special sales tax
- Decree No. 05/2019/ND-CP provides a legal framework for the establishment and implementation of Internal Audit
- Circular No. 48/2019/TT-BTC on the making and settlement of provisions for devaluation of inventory, losses of
financial investments, bad debts and warranty at enterprises
- Draft amended Laws on Investment/Enterprises/Securities
10
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
RESTRUCTURING AND EQUITISING STATE-OWNED ENTERPRISES
The Vietnamese Government upholds its commitments to economic reform. The
equitisation of state-owned enterprises (SOEs) in recent years is an example
economy forward. The 2016-2020 roadmap for the equitisation of SOEs has been
outlined in Decision No. 58/2016/QD-TTg.
220
NUMBER OF EQUITISED
SOES DURING 2011-2018
175
73
55
14
2011
45
26
2012
23
2013
2014
2015
2016
2017
2018
Source: Vietnam Government Report on the equitisation of SOEs (2011-2018)
11
TRADE AND
INVESTMENT
12
Bilateral agreements
- Vietnam – Chile
- Vietnam – South Korea
- Vietnam – Japan
- Vietnam - Eurasian Economic
Union FTA
- Vietnam – EU FTA (not yet effective)
- Vietnam – Israel (in negotiation)
- Vietnam – EFTA (in negotiation)
I. TRADE AGREEMENT
Vietnam has been actively engaging
in a number of free trade agreements
to help accelerate the country’s
integration into global economy in
recent years. Key trade pacts include:
ASEAN Economic Community
(launched in December 2015)
Comprehensive and
Progressive Agreement for Trans(signed on March 8th, 2018)
Regional Comprehensive
Economic Partnership (RCEP)
(on-going negotiation)
Free trade agreements signed as an
ASEAN member country
- ASEAN - Japan
- ASEAN - South Korea
- ASEAN - India
- ASEAN - China
- ASEAN - Hong Kong
- ASEAN - Australia - New Zealand
Vietnam has established diplomatic
relations with 185 countries, expanded
commercial and investment relations
with more than 220 markets and signed
more than 80 Double Tax Avoidance
Agreements.
II. FOREIGN DIRECT INVESTMENT
According to the Foreign Investment
Agency under the Ministry of Planning
and Investment, the total newly
registered, adjusted capital, capital
contributed and shares purchased by
foreign investors reached 38.2 billion USD,
increase 7.2% as compare to the same
period in 2018. The realized capital of
foreign direct investment projects was
estimated at 20.38 billion USD, up 6.7%
as compared to the same period in 2018.
Higher FDI disbursement throughout the
years implies the improvement in
investors’ confidence in the economic
outlook and their commitment to
establish long-term investments in
Vietnam.
Vietnam is one of the only few countries
in the region that allows 100% foreign
ownership for most sectors. 375 SOEs
will be partially or wholly divested
during 2017-2020 period.
13
B TRADE AND INVESTMENT
INVESTMENT INDUSTRIES
Vietnam has become an attractive
Real Estate: The investment in real
investment destination for various
estate sector accounted for 10 per
sectors, from manufacturing,
2018. Ho
real estate, energy, retail, and
Chi Minh City stands out as the hub
construction, to arts, tourism,
to attract most of the large-scale real
entertainment, and other services.
estate projects.
Manufacturing: With advantages
Other sectors: Green energy,
in a number of areas such as
science & technology, wholesales,
competitive labor cost, raw
and infrastructure development are
materials resources, lower
entering a booming period, as the
barriers to trade, and many
Government has given these sectors
designated investment incentives,
priorities for development through
the manufacturing sector remains
incentives and encouragement to
attract investors. Investment in these
2019, accounting for around 65
sectors is expected to increase in the
years to come.
REGISTERED AND DISBURSED FDI (2015-2019)
FDI BY SECTOR (2019)
14%
Million USD
40,000
30,000
20,000
35,602
4%
38,019
35,466
7%
26,891
24,115
14,500
15,800
17,700
19,100
20,380
10%
65%
10,000
0
2015
2016
Registered FDI
14
2017
2018
Disbursed FDI
2019
Manufacturing
Real Estate
Professional activities,
science and technology
Wholesale,
Retail & Repair
Others
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
MAIN EXPORT PARTNERS,
TOP 10 FOREIGN INVESTORS BY REGISTERED CAPITAL (AS OF DECEMBER, 2019)
80,000
Invesment Capital
(million USD)
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
uth
So
rea
Ko
g
on
gK
n
Ho
ore
ap
g
Sin
an
Jap
ina
Ch
s
nd
Isla
n
i
g
Vir
tish
Bri
an
iw
Ta
a
mo
Sa
d
an
ail
Th
nd
lla
Ho
Source: Foreign Investment Agency
Foreign investors usually select
industrial parks (IPs)/economic zones
densely populated cities with modern
(EZs) where the infrastructure and
infrastructure and agglomerated
transportation are specialized, and
convenience (e.g. Hanoi, Ho Chi
special investment incentives are
Minh City, Da Nang) to implement
given. FDI capital invested at IPs and
service-related projects. Whereas,
EZs accounted for roughly
manufacturing and processing
80% of total registered capital in
investment projects are often located at
manufacturing sector.
17 COASTAL
ECONOMIC ZONES
326 INDUSTRIAL PARKS
3 HI-TECH PARKS
– Hoa Lac Hi-tech Park
– Saigon Hi-tech Park
– Da Nang Hi-tech Park
15
B TRADE AND INVESTMENT
M&A TRANSACTIONS HEAD TO BREAKTHROUGHS IN 2019
The Government is establishing mechanism and policies to facilitate the private
sector to join the State-owned enterprises (SOEs) restructuring process through
capital contribution and share purchase as well as enhancing linkages in value
chain between the SOEs and the private sector.
The value of M&A transactions increased from US$1.1 billion in 2009 to US$7.64
billion in 2018. The total value of transactions in the decade hit US$55 billion.
However, the value of M&A transactions in the first half of 2019 leveled off at
US$1.9 billion, equal to 53% of the same period last year.
According to the statistics of the Foreign Investment Agency, under the Ministry of
Planning and Investment, foreign investors spent US$2.64 billion to purchase
shares.
Positive factors are opening a new era for M&A activities in Viet Nam with a
number of opportunities for breakthrough and making M&A become a crucial
investment attraction channel in the time ahead.
M&A market in Viet Nam expects strong developments in the issuance and
realization of policies as well as connectivity, trade transactions and innovation of
buyers and sellers.
16
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
SETTING UP AN
INVESTMENT IN
VIETNAM
17
C SETTING UP AN INVESTMENT IN VIETNAM
ESTABLISHING A NEW
BUSINESS ENTITY
Some main corporate
forms of doing business
in Vietnam include: (1)
Limited-liability company
INVESTMENT VIA M&A
with one or more members;
(2) Joint-stock company; (3)
OTHER FORMS OF INVESTMENT
(i.e. participating in contractual business
forms or purchasing stakes of an existing
enterprise)
LIMITED LIABILITY COMPANY
Liabili
Li
ted
mi
ty Compa
ny
Established
by capital
contribution
Maximum of
50 members
Not allowed
to issue
shares
18
Members are
liable for the nancial
obligations within
the capital
contributed
Partnership; (4) Business
Cooperation Contract; and
(5) Public-Private
Partnership Contract.
A limited liability company is a legal
entity established by capital contribution
which is treated as equity (or charter
capital) from its members. A limited
liability company is not allowed to issue
shares. The total number of members in
a limited liability company is restricted to
50 (applied to form of a limited liability
company with more than two members).
Members of a limited liability company
the limited liability company within the
capital contributed – or undertaken to be
contributed - to the company.
A limited liability company may be
established by foreign investors either in
one of the two following forms:
i. A 100% foreign-owned enterprise
(where all members are foreign
investors); or
ii. A joint-venture enterprise with at
least one Vietnamese investor.
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
p
Com
any
Joint Sto
ck
JOINT STOCK COMPANY
Established by
its founding
shareholders on
the basis of their
subscription of
shares
At least three
shareholders
(with no maximum
number of
shareholders)
A joint stock company is a legal entity established
by its founding shareholders on the basis of their
subscription of shares of the joint stock company.
The charter capital of a joint stock company is
divided into shares and each founding shareholder
holds a number of shares corresponding to their
subscribed and paid-up shares in the joint stock
company.
A joint stock company is required to have at least
three shareholders (with no maximum number of
shareholders). A joint stock company may take
the form of either (i) 100% foreign-owned; or (ii) a
joint venture between foreign and domestic
investors.
PARTNERSHIP
sh
rtner ip
Pa
Managing
partners have
unlimited liability for
all obligations of the
partnership
Contributing
partners only liable
obligations of the
partnership up to their
contributed
capital
BUSINESS COOPERATION
CONTRACT
si
Bu
Co
ness opera
nC
tio
ontract
Signed between
foreign investors and
Vietnamese investors
without the creation of a
new legal entity
BCC’s parties
hold unlimited
liability for the
of the BCC
A partnership may be established between two
individual managing partners. The managing
partners have unlimited liability for all
obligations of the partnership. Besides managing
partners, a partnership may have contributing
obligations of the partnership up to the value
of their contributed capital.
A Business Cooperation Contract (BCC) is normally
signed between foreign investors and Vietnamese
investors in order to carry out certain business
activities.
BCC is executed without the creation of a new legal
entity. Instead, parties to a BCC shall establish a
co-ordination board to implement and oversee the
BCC. The investors to a BCC mutually agree on
allocation of responsibilities and sharing of
profits/losses arising from a BCC. BCC’s parties hold
unlimited liability for the financial obligations of
the BCC.
19
C SETTING UP AN INVESTMENT IN VIETNAM
PUBLIC-PRIVATE
PARTNERSHIP
PublicPri
eP
vat
artnership
Comprise BOT,
BT, BTO, BOO,
BTL, BLT, O&M
Contracts
Set up
on the basis of a contract
between relevant government
authorities and project
companies to perform certain
regulated infrastructure
works and public
services
20
A Public-Private Partnership (PPP) contract is
an investment form set up on the basis of a
contract between relevant government
authorities and project companies to perform
certain regulated infrastructure works and
public services, e.g. transportation system,
water supply system, power plants, educational
and healthcare-related infrastructure, etc.
PPP Contracts comprise Build-Operate-Transfer
(BOT), Build-Transfer (BT), Build-TransferOperate (BTO), Build-Own-Operate (BOO),
Build-Transfer-Lease (BTL), Build–LeaseTransfer (BLT) and Operate-Manage (O&M)
Contracts.
After signing PPP contracts with an authorized
state agency, foreign investors must establish a
project company in the form of a limited
liability company or a joint stock company.
PPP contracts clearly set out the rights and
obligations of foreign investors to such contracts.
MERGERS AND ACQUISITIONS
The legal framework for M&A is set out under the Law on Enterprise and Law on
Investment and their guiding documents, which cover conditions, procedures
and tax consequences of such activities.
The Competition Law also has an effect on M&A activities. Where a merger or
acquisition may result in a legal entity with a market share accounting for 30%
to 50% of the relevant market, the legal representative of such entity must notify
the competition management body before the merger/acquisition is implemented,
unless the law provides otherwise. A merger or acquisition that results in a new
entity with its market share accounting for more than 50% of the relevant
market is prohibited, unless otherwise stipulated in the Competition Law.
Other investment forms
All indirect investment activities of foreign investors in Vietnam must be
conducted in Vietnamese Dong via an indirectly-invested capital account opened
at a permitted bank. Balances in indirectly-invested capital accounts of foreign
investors cannot be converted into time deposits, or saving deposits at credit
institutions and foreign bank branches.
Below are examples of frequently-conducted indirect investment activities in
Vietnam.
Capital contribution, sale/purchase
of shares or contributed
capital in Vietnamese enterprises
without directly participating in
the enterprise management and
administration
Sale/purchase of other valuable
papers in Vietnamese dong
permitted to issue within Vietnam’s
territory by organizational residents
Capital contribution, transfer of
contributed capital in securities
investment funds and fund
management enterprises in accordance
with the laws on securities
Sale/purchase of bonds and other
types of stocks in the Vietnamese
securities market
21
C SETTING UP AN INVESTMENT IN VIETNAM
SETTING UP A NEW BUSINESS
PROCEDURES FOR COMPANY SET-UP
In order to legally carry out business activities in Vietnam, foreign investors
must register their investment with the appropriate licensing authorities. Under
the new Law on Investment and Law on Enterprises, foreign investors now go
through two steps:
PROCEDURES FOR NEW COMPANY SET-UP
Step 1
Location
Selection
Step 2
Step 3
15 days
3 days
5-7 days
IRC
Application
ERC
Application
Public
Notification
(*) The timeline for setting-up projects prioritized by national or provincial Government shall be shortened.
(**) Please note that IRC is required only for investments by foreign investors or deemed-to-be foreign investors
(i.e. companies with more than 51% of charter capital held by foreign ownership).
PROCEDURES FOR BRANCH, REPRESENTATIVE OFFICE SET-UP
Step 1
Location
Selection
22
Step 2
Step 3
Step 4
7 days
5-7 days
5-7 days
Seal/Tax ID
Registration
Public
Notification
RO/Branch License
Application
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
As part of the set-up procedures, various types of documents will be required
depending on the type of company/business activities that is being set up, etc.
All legal documents issued by overseas authorities must be translated into
Vietnamese and must be validated by the Vietnamese Embassy in the home
country of the investor.
RELEVANT LICENSING AUTHORITIES
IRC
CERTIFICATE
ERC
Projects located INSIDE
industrial zones, export
processing zones, high-tech
zones & economic zones
Provincial Management Board
of Industrial/ Economic Zones
Projects located OUTSIDE
industrial zones, export
processing zones, high-tech
zones & economic zones
Provincial Department of
Planning and Investment
Provincial Department of
Planning and Investment
LIQUIDATION AND CLOSING BUSINESS
The termination, liquidation, or dissolution, of an enterprise shall occur in the
following circumstances:
The operation period in the
company’s charter expires
without a decision on extension
Failure to maintain minimum
required number of members
for 6 consecutive months
without business conversion
The dissolution is decided by
owners/ general partners/ board of
members/ shareholders
Business Registration
23
C SETTING UP AN INVESTMENT IN VIETNAM
The company shall be dissolved only when all debts and liabilities are settled
and the company is not involved in any dispute at a court or arbitration body.
The liquidation procedures generally take about 6 - 12 months, which normally
Step 1
NOTIFICATION OF DISSOLUTION DECISION
7 days
from approval date
Step 2
National
Business
Registration Portal
Employees
Tax Authority
SUBMIT DISSOLUTION DOSSIERS & RETURN IRC/ERC
5 days
from debt clearance date
24
Tax Authority
TAX FINALISATION / TAX AUDIT & TAX CODE CANCELLATION
2-3 months
Step 3
Business
Registration
Authority
Business
Registration
Authority
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
D
TAXATION AND
CUSTOMS
25
I. TAXATION
The Vietnamese tax system is comprised of the following:
i.
Corporate Income Tax (CIT);
ii. Personal Income Tax (PIT);
iii. Value Added Tax (VAT);
iv. Foreign Contractor Withholding Tax (FCWT); and
v. Other taxes (i.e. Special Sales Tax, Import & Export Duties, Natural
Resources Tax, Property Tax, Environment Protection Tax, Business
License Duty & Registration Fee).
All taxes are levied at the national level. There are no local taxes.
Please refer to the following pages for your further reading.
Page
Type of Tax
26
Corporate Income Tax
28
Personal Income Tax
34
Value Added Tax
39
Foreign Contractor Withholding Tax
44
Other Taxes
51
Special Sales Tax
51
Environment Protection Tax
52
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
TAX COMPLIANCE TIMELINE
NO. TAX TYPE/ TIME LIMIT
MONTHLY
QUARTERLY
FINALIZATION
20 day of the following
month
30 day of
the following
quarter
90th day from
N/A
(provisional
payment only)
th
th
or calendar
year-end date
1
Corporate Income Tax
2
Personal Income Tax
(*)
(calendar year)
3
Value Added Tax
(**)
N/A
4
Foreign Contractor
Withholding Tax
10th day following the payment day; or 20th of the month
following the payment month if registering to file FCWT on a
monthly basis
5
Compulsory Social/
Health/ Unemployment
Insurance
The last day of the month
6
Stamp Duty
Upon occurrence
7
Export Duty
Upon occurrence
8
Import Duty
Upon occurrence
50
shall be applicable.
12-month operation within a
50 billion or less, otherwise the
monthly basis or quarterly basis.
27
CORPORATE INCOME TAX (CIT)
TAXPAYERS
1
2
Foreign
enterprises with or
without Permanent
Establishment
(PE)
Vietnamincorporated
enterprises
Branches/Agents
Service
establishment
Plants/
Construction sites
Others
TAX CALCULATION
CIT PAYABLE = TAX RATE X ASSESSABLE INCOME
Assessable
Income
Total
Revenue
Deductible
Expenses
Other
Income
Carried
Loss
1. (Total revenue – Deductible expenses) is considered an income from main business activities.
Such income is entitled to CIT incentives, if any.
2. Normally, other forms of income are not entitled to CIT incentives, and thus, shall be subject to
the standard CIT rate of 20 per cent. Other income includes gains from foreign exchange revaluation,
income from disposal of fixed assets, interest income, ect. not related to main business.
Tax Rates
From 1 January 2016, the standard CIT rate is 20 per cent. The CIT rate for enterprises operating in
exploration and mining of petroleum, gas, and other rare and precious natural resources shall
range from 32 per cent to 50 per cent, depending on the project locations and conditions.
28
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
TAX INCENTIVES COMMENCEMENT RULE
Preferential tax rate
Generally, preferential tax rate is applicable from the first revenue-generation
year; except high-tech enterprises or projects.
Tax holiday
Generally, tax holiday is available from the first profit-making year or the fourth
revenue-generation year, where applicable, except high-tech enterprises.
BY LOCATION
ACTIVITIES
CIT INCENTIVES
PREFERENTIAL TAX RATE
TAX HOLIDAY
With especiallly difficult
socio-economic conditions
• Economic Zones
• High-tech Zones, including
concentrated information
technology parks established
under the Prime Minister’s
decision
10% for 15 years
• 4 years of tax exemption;
and
• 50% reduction for the next
9 years
• With difficult socio-economic
conditions
17% for 10 years
• 2 years of tax exemption;
and
• 50% reduction for the next
4 years
• Industrial Parks (which are not
located in the favorable
socio-economic locations)
Not applicable
• 2 years of tax exemption;
and
• 50% reduction for the next
4 years
29
BY SECTOR
The current incentive scheme is applicable for sectors that are prioritized for
investment under the Government’s development policies.
ACTIVITIES
(for example)
PREFERENTIAL TAX RATE
TAX HOLIDAY
• High-tech enterprises (including
science and technology enterprises);
research, application, and incubation of
hi- technology projects
• Environmental protection
• Investment for infrastructure
development (water plant,
power, road, port, etc.)
• Software production
• Supporting industries
10% for 15 years
• 4 years of tax
exemption; and
• 50% reduction for
the next 9 years
• Socialised projects in regions with
difficult/especially difficult
socio-economic conditions
10% for whole project’s
duration
• 4 years of tax
exemption; and
• 50% reduction for the
next 9 years
• Socialised project not located in
10% for whole project’s
duration
• 4 years of tax
exemption; and
• 50% reduction for the
next 5 years
10% for whole project’s
duration
• Tax exemption and
reduction under
incentives for location
(if applicable)
economic regions
• Farming, husbandry, processing of
regions; forestry in difficult regions;
production of plant varieties, animal
breeds; production of salt; preservation
of agriculture products, aquaculture
products and foods, etc.
30
CIT INCENTIVES
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
ACTIVITIES
(for example)
• Farming, husbandry, processing of
agriculture and aquaculture products
CIT INCENTIVES
PREFERENTIAL TAX RATE
TAX HOLIDAY
15% for whole project’s
duration
• Manufacturing of steel, energy saving 17% for 10 years
products, machinery and equipment
serving agriculture, forestry, fisheries and
salt production, traditional crafts, etc.
BY BUSINESS SCALE
Investment incentives are granted to large projects manufacturing projects
(excluding those in product manufacture subject to special sales tax or those in
mineral resources exploitation) having either:
1. Total capital of VND 6,000 billion or more, disbursed within 3 years since being
licensed with:
- Minimum annual revenue of VND 10,000 billion by the 4th year of revenue
generation at the latest; or
- Regularly employing more than 3,000 employees by the 4th year of operation at
the latest.
2. Total capital of VND 12,000 billion or more, disbursed within 5 years since being
licensed and using technologies being evaluated under the Law on Hi-technology,
and the Law on Science and Technology.
ACTIVITIES
• VND 6,000 billion capital project (1)
• VND 12,000 billion capital project (2)
CIT INCENTIVES
PREFERENTIAL TAX RATE
10% for 15 years
TAX HOLIDAY
• 4 years of tax
exemption; and
• 50% reduction in tax
for the next 9 years
31
DEDUCTIBLE EXPENSES
An expense might be deductible for CIT purpose if the following conditions are met:
1
Actually incurred and
relevant to the company’s
business activities
3
Payments above VND 20
million must be supported
by bank payment vouchers
or deemed as made via
banks
Supported by proper
documents
Not in the list of
non-deductible expenses
2
4
In addition, payments above VND 20
cap of one-month average monthly salary;
million must be supported by bank
• Costs of raw materials, supplies,
payment vouchers (or deemed as
fuel, power and goods exceeding the
made via bank) to be deductible.
reasonable consumption levels as
NON-DEDUCTIBLE EXPENSES
stipulated by the Government;
• Interest on loans from non-economic
Below are notable examples of
non-deductible expenses:
• Depreciation expenses of fixed
assets not in accordance with
prevailing regulations, i.e. (i) not for
business purpose; (ii) not supported
by proper documentation; and (iii)
exceeding the regulated depreciation
rates;
• Labor expenses recorded but not
actually paid or not stipulated with
clear conditions and amounts under
labor contracts, collective labor
agreements or company’s financial
policies;
and non-credit organizations exceeding
1.5 times of the interest rate announced
by the State Bank of Vietnam;
• Interest expenses exceeding 20%
EBITDA for enterprises having relatedparty transactions;
• Interests on loans corresponding to
the portion of charter capital not yet
contributed in accordance with registered
contribution schedule;
• Periodical accrued expenses not paid or
not fully paid at the end of the period;
losses, inventory devaluation,
bad debts, product warranties or
32
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
construction works, vocational risks
activities. Losses from the transfer
not in accordance with the prevailing
of real estate, investment projects,
regulations;
rights to participate in investment
• Unrealized foreign exchange losses
projects (except for mineral
due to the year-end revaluation of foreign
exploitation and exploration
currency items other than account
payables;
• Overhead costs allocated to the
Permanent Establishment (PE) by foreign
companies exceeding the amount
from other business activities.
TAX DECLARATION AND PAYMENT
Enterprises are not required to
determined based on the revenue-based
submit the quarterly CIT declaration
allocation ratio;
returns. However, provisional
• Contributions to voluntary pension
payments are still compulsory and
funds and purchase of voluntary pension
will be calculated and settled based
insurance, life insurance for employees
on best estimation. In case the
exceeding VND 3 million/person/month;
payment interests, etc.;
the sum of provisional CIT payments
• Donations other than certain donation
is more than 20 per cent of the CIT
contributions for education, health care,
natural disaster or building charitable
excess of 20 per cent shall be subject
homes, etc.;
to late tax payment interest.
• Certain expenses related to the issuance,
purchase and sale of shares.
LOSSES
Tax loss is carried forward within
prepared and submitted to the tax
authorities within 90 days from the
tax liabilities arising from the tax
a maximum period of 5 years after
the loss-making year. The tax loss
payments made quarterly shall
generated from January 2009
be settled within 90 days from the
end of fiscal year.
must be carried forward consecutively
even during the tax exemption period.
Carry-back of tax loss is not allowed.
The standard tax year is the calendar
year. However, enterprises are able to
Losses from incentive business
adopt a tax year, i.e. fiscal year, which
income from non- incentive
upon notification to tax authorities.
is different from the calendar year
33
PERSONAL INCOME TAX (PIT)
OVERVIEW
TAXPAYER
TAX RESIDENT
TAX NON-RESIDENT
Taxable
income
Worldwide income
Vietnam-sourced income
Tax rate on
employment
income
Progressive rate (5~35%)
Flat rate (20%)
Tax calculation Assessable Income = Taxable Income
- Deductions
Assessable Income = Taxable
Income
Deduction
Personal deduction
Dependent deduction
Compulsory and (capped) voluntary
insurance contribution
Charitable or humanitarian donation
No deduction is claimed
Tax relief
Foreign tax credit is allowed on the foreignsourced income
Tax treaty exemption may be
applicable if conditions are met
TAX RESIDENCY
An individual is a tax resident if he/she
meets one of the following conditions:
• Residing in Vietnam for 183 days or
more in 12 consecutive months from
the first arrival date or in a calendar
year;
• Having a registered permanent
residence in Vietnam as recorded by
a temporary/permanent residence
card;
• Having rented a house in Vietnam
with a term of 183 days or more
within a tax year.
Present in
Vietnam for
183 days or
more
House lease
contract of 183
days or more
Permanent/
Temporary
residence card
Note: An individual having registered address
or rented house over 183 days but residing less than
183 days in Vietnam may still be a tax resident if being
unable to prove residency of another country.
34
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
Tax residents are subject to PIT in
remuneration and fringe benefits
Vietnam on their world-wide income
whether in cash or in kind. However,
regardless of where such income is
certain income items are not subject to
paid, earned or charged. Worldwide
tax, typically:
employment income is subject to tax at
• Once-off relocation allowances for
progressive tax rates ranging from 5
example, paid to foreigners first time
per cent to 35 per cent depending on
comes to work in Vietnam; or Vietnamese
income level.
citizens residing overseas return to
Individuals who do not satisfy any of
work in Vietnam;
the above condition are classified as
• Transportation allowance: from
non-residents and subject to tax only
home to work and vice versa under the
on Vietnam-sourced income. The rate
Company’s policy;
applicable to tax non-residents’
• Wedding and funeral allowances
Vietnam- sourced employment income
under the Company’s policy and being
is currently fixed at 20 per cent.
capped at one-month average monthly
Both residents and non-residents are
salary;
also subject to PIT in Vietnam on
• Airfare in kind one round trip per
incomes of non-employment nature
year for employee to travel back to
which are taxed at different flat rates.
home country;
TAX YEAR
• Tuition fee in kind for children to
study from nursery to high school level
The Vietnamese standard PIT reporting
at host country;
period is the calendar year. For foreign
• Insurance premium: voluntary
individual, the fist tax year will be the
non-accumulative insurance for health
12-consecutive-month-period from the
& death;
first arrival date in Vietnam in case the
• Membership/ healthcare/ entertainment
individual is present in Vietnam for
in kind & non-identified beneficiary;
less than 183 days during the first
• Supports for cure of fatal diseases to
calendar year. From the second year,
employees (and close family members);
the tax year will be the calendar year.
• Per-diem: Fully exempted if paid
EMPLOYMENT INCOME
Employment income includes
under the Company’s policy;
• Housing allowance: In excess of 15
per cent of total taxable income;
salaries and wages, and all forms of
35
• Uniform allowance in cash below
VND 5 million/year or in kind;
TAX RELIEF
FOREIGN TAX CREDIT
• Overtime in excess of the normal rate.
A tax resident is entitled to claim
for Foreign Tax Credit (i.e. the
NON-EMPLOYMENT INCOME
amount of tax paid overseas
Non-employment income includes
according to overseas regulations)
income from business, capital
against their Vietnamese PIT on the
investment, inheritance, gifts,
foreign-sourced income; however, the
prize winnings, transfer of capital,
creditable amount shall not exceed the
transfer of real estate, sale of shares/
Vietnamese PIT payable according to
securities, royalties, franchising,
copyrights, etc. which are subject to
income arising overseas.
TAX TREATY RELIEF
TAX DEDUCTIONS
A tax non-resident may enjoy PIT
Tax residents of Vietnam are entitled to
exemption in Vietnam via tax treaty
the following deductions from taxable
application if certain conditions
income:
under the treaty are met. To enjoy
• A personal deduction of VND 9 million
per month;
are required.
spouse, children and other eligible
persons including parents in the amount
of VND 3.6 million per dependent per
month (provided that certain conditions
are met);
• Eligible charitable or humanitarian
donations;
• Compulsory social insurance,
health insurance and unemployment
insurance paid by employees; and
• Contribution to private pension
fund made by the employer and the
employee capped at VND 1 million
per month pursuant to the Ministry
of Finance’s guidance.
36
TAX RATES
Employment Income
MONTHLY
ASSESSABLE
INCOME
(million VND)
TAX RATE
RESIDENTS
Up to 5
5%
Over 5 to 10
10%
Over 10 to 18
15%
Over 18 to 32
20%
Over 32 to 52
25%
Over 52 to 80
30%
Over 80
35%
NONRESIDENTS
20%
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
Non-Employment Income
(applicable to both residents & non-residents)
NON-EMPLOYMENT
INCOME
TAX RATE
Business Income
1% - 5% on revenue
*Depending on type
of business
Capital investment,
i.e. interest, dividends
(except for bank
interest)
5%
Capital transfer
20% on net gains for
tax resident; 0.1% on
sales proceeds for
non-resident
Securities / JSC share
transfer
0.1% on sales
proceeds
Real estate transfer
2% on sales proceeds
Income from winning
prizes (in excess of
VND 10 million)
10%
Income from copyright
(in excess of VND 10
million)
5%
Income from royalty/
franchising (in excess
of VND 10 million)
5%
Income from gifts /
inheritances
(in excess of VND 10
million)
10%
37
TAX DECLARATION AND PAYMENT
Each individual taxpayer must register for a personal tax code prior to the time
limit for his first PIT filing. In case the employer makes tax registration for
employees earning income from salaries or wages and tax registration for
employees’ dependents, the registration deadline shall be within 10 working
days before the submission of annual PIT finalization return.
Monthly
Quarterly
TYPE OF INCOME
DEADLINE
Employment income received
from Vietnamese employers
′s return)
20th day of the following month
Employment income received
from Vietnamese employers
′s return)
30th day of the following quarter
Employment income received
via Company′s return)
Non-employment income
10th day from the date of
arising income
TAX FINALIZATION
Tax residents are required to file the PIT finalization return and settle outstanding
PIT liabilities within 90 days from the end of the tax year.
Residents foreign expatriates terminating their Vietnam assignment must file
PIT finalization dossiers prior to their departure dates (or within 45 days from
departure dates in case of authorization following a recent specific guidance)
38
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
VALUE ADDED TAX (VAT)
SCOPE OF APPLICATION
VAT is imposed on goods and services used for production, trading and
consumption in Vietnam (including those purchased from overseas
organizations and individuals).
TAX RATES
There are three types of VAT treatment: non-taxable items; items not required to
declare VAT and taxable items (at 0 per cent, 5 per cent and 10 per cent VAT rate).
Below are some notable cases:
NON-TAXABLE
• Land use rights;
• Insurance related to human;
• Loan, credit services;
• Education and vocational training according to prevailing regulations;
• Medical services;
• Machinery and equipment not locally produced, imported for some specific purpose;
• Temporarily imported goods;
• Capital transfer transactions between non-tariff zones and overseas;
• Intellectual property rights, software (except exported software);
• Unprocessed or semi-processed products of cultivation, agriculture, aquaculture; animal
breeding stock, seedlings, salt products, etc.;
• Imported goods/services for humanitarian aid;
• Exported products directly processed from main materials being natural resources and/ or
minerals whose total value plus energy cost makes up at least 51% of the prime cost.
39
DECLARATION NOT REQUIRED
• Compensation, financial income;
• Project transfer;
• Transfer of assets within a company and dependent units;
• Capital contribution by assets;
• Commission for some agent services.
TAXABLE
40
0%
Export goods and services;
International transportation;
Aviation and maritime services provided either directly for
foreign entities or through agents
5%
Clean water, pesticide, services for digging, embanking,
dredging of canals, agricultural machinery and equipment,
sugar and by-products, medical equipment, teaching aids,
artistic, sports activities, etc.
10%
Standard VAT rate, applicable to goods and services other
than those mentioned above
D TAXATION AND CUSTOMS
TAX CALCULATION
CREDIT METHOD
For general business activities, VAT
The credit method is adopted by
liabilities must be paid to local tax
enterprises maintaining complete
authorities where general business
books of accounts, invoices and
activities take place while for
imported goods, VAT liabilities will
be collected by customs authorities
upon importation.
There are two methods for VAT
declaration: Credit method and
Direct method.
• Credit method: VAT liabilities are
calculated by offsetting input VAT
with output VAT;
• Direct method: VAT liabilities for
specific goods and services are
calculated by using the deemed VAT
documents in accordance with
relevant regulations, including:
• Enterprises with annual revenue
subject to VAT of more than VND 1 billion;
• Enterprises in other cases who
voluntarily register for VAT declaration
under credit method.
VAT calculation under credit method:
VAT
PAYABLE
OUTPUT
VAT
INPUT
VAT
rates.
OF WHICH
Output VAT shall be equal to the total VAT on goods or services sold as stated
in the VAT invoice.
Input VAT shall be:
- VAT amount as recorded in all VAT invoices for the purchase of goods or services;
- VAT amount stated on receipts for VAT payment on imported goods;
- VAT amount stated on receipts for VAT payment on behalf of foreign
contractors.
In order to claim deductible input VAT, taxpayers must obtain the following
documents for each type of goods/services purchased:
GOODS/SERVICES
LOCALLY
PURCHASED
IMPORTED
GOODS
PAYMENTS ON
BEHALF OF FOREIGN
CONTRACTORS
VAT invoice
VAT payment receipt
(*) Non-cash payment voucher
Customs returns
(*) Non-cash payment vouchers are only required for payments of VND 20 million or more (inclusive of VAT).
41
In case the credit method is applied, taxpayers should note the following principles
regarding credits:
VAT
OUTPUT
CORRESPONDING INPUT
Non-taxable
Nil
Not eligible for credit
Declaration not required
Nil
May be credited
Taxable (0%)
Nil
May be credited
Taxable (5%, 10%)
Yes
May be credited
If goods/services/fixed assets are used for the production/trading of both taxable
good/services and non-taxable goods/services, then only the input VAT of
goods/services/fixed assets used for the production/trading of taxable goods
may be used for credit.
Taxpayers must separate the credit-eligible input VAT from non-credit-eligible
inputs. Otherwise, the input VAT shall be credited based on the ratio of the
revenue of goods/services subject to VAT and not required for VAT declaration
to the total revenue from sales of goods/services.
DIRECT METHOD
The direct method is adopted in the following cases:
• Enterprises with annual revenue subject to VAT of less than VND 1 billion
unless they voluntarily register for credit method;
• Enterprises not maintaining proper books of accounts and foreign
organizations/ individuals carrying out business activities not regulated under
the Law on Investment;
• Business individuals and households;
• Enterprises engaging in trading in gold, silver and precious stones.
VAT calculation under direct method:
VAT PAYABLE
REVENUE
OF WHICH, THE
APPLICABLE VAT RATES
SHALL BE:
42
VAT RATE
• 1% Distribution; supply of goods
• 5% Services; construction excluding supply of materials
• 3% Manufacturing; transportation; services attached to the supply
of goods; construction, including supply of materials
• 2% Other cases
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
For those enterprises engaging in the business of gold, silver and precious
stones, VAT payable shall be calculated as 10% of the added value. The value
added of gold, silver, and precious stones equals their selling price minus their
purchase price which are recorded by proper VAT invoices or payment receipts/
vouchers.
TAX DECLARATION AND PAYMENT
Monthly VAT declaration shall be applied in most cases and is to be filed by the
20th day of the following month.
Quarterly VAT declaration is applicable to taxpayers with total turnover from
sales of goods/ services of the preceding year not exceeding VND 50 billion. The
deadline for quarterly VAT filing is by the 30th of the following quarter.
Where the taxpayer are eligible for quarterly VAT declaration wish to instead file
VAT monthly, they shall submit a notification to tax authorities not later than the
deadline for VAT declaration in the first month of the tax year.
VAT finalization is not required.
TAX REFUND
From 1 July 2016, taxpayers can only claim VAT refund from tax authorities in
the following common cases:
• New projects of taxpayers who adopt the VAT-deduction method that are in the
pre-operation investment period, and with a total accumulated input VAT
exceeding VND 300 million (some exceptions may apply);
f
local sales) with an amount exceeding VND 300 million (but capped at 10% of export
revenue), except:
goods imported then re-exported;
Customs Law.
From 1 February 2018
146/2017/ND-CP in addition
to the above, business establishments importing and then exporting goods into
VAT exceeding VND 300 million are re-allowed to enjoy VAT refund.
E-Invoice
Currently, taxpayers can choose between paper invoices or e-invoices.
However, e-invoices must be used for all enterprises from 01 November 2020.
43
FOREIGN CONTRACTOR WITHHOLDING TAX (FCWT)
TAXPAYERS
FCWT is applicable to foreign organizations/individuals who conduct
business or earn income in Vietnam on the basis of a contract/agreement
with (i) a Vietnamese party (as a main foreign contractor); or (ii) another
foreign contractor to implement part of the contractual scope of works (as a
foreign sub-contractor). FCWT is a tax collection mechanism that normally
comprises both CIT and VAT, but may also include PIT for payments to foreign
individuals.
SCOPE OF APPLICATION
SUBJECT TO FCWT
NOT SUBJECT TO FCWT
Services
Services provided or consumed
inside Vietnam
Services provided and consumed
outside Vietnam
Goods
Supply of goods accompanied by
services
Supply of goods in which the delivery
point is inside Vietnam
Supply of goods not accompanied by
services and the delivery point
is overseas or outside border gate of
Vietnam
Others
Construction & installation
Interest
Royalties
Trademarks
Penalty/compensation
Income from transportation activities
Security transfer
IMPORTANT NOTE
There is no dividend withholding tax in Vietnam on corporate shareholders.
TAX DECLARATION
There are three methods for FCWT declaration including: (i) Deemed method; (ii)
Hybrid method; and (iii) Declaration method.
While the Deemed method can be applied by foreign contractors without any
specific conditions (and is the most common method, which can be applied), the
Hybrid method and Declaration method require foreign contractors to satisfy the
44
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
following conditions:
• Maintaining a contract duration of 183 days or more;
• Applying the Vietnamese Accounting System.
NO. CRITERIA
DEEMED METHOD
DECLARATION METHOD HYBRID METHOD
• Vietnamese Party
• Foreign Contractor
• Foreign Contractor
VAT declaration
• 10 days from
payment date; or
• Monthly
• Monthly
• Monthly
CIT declaration
• 10 days from
payment date; or
• Monthly
• Quarterly
• 10 days from
payment date; or
• Monthly
Finalization
• 45 days from
contract termination
date
• 90 days from the end of • 45 days from
contract termination
date, applied for CIT
• 45 days from contract
termination date
• VAT = Taxable
income x deemed
rate
• CIT = Taxable
income x deemed
rate
• VAT = Output VAT –
Input VAT
• VAT = Output VAT –
Input VAT
• CIT = Taxable income x
CIT rate
• CIT = Taxable
income x deemed
rate
• No
• Not compulsory
• Not compulsory
• Tax liability would
be withheld before
remittance
• No detailed
requirement
requirements to
1
Filing
responsibility
2
Compliance
timeline
3
Tax calculation
VAT
CIT
4
5
Auditing
Revenue/
before remittance
45
TAX RATES
In case of the deemed method, the following rates shall be applied for some
notable cases:
ACTIVITIES
VAT RATE
CIT RATE
Supply of goods in Vietnam or
associated with services
rendered in Vietnam (including
in-country export- import,
distribution of goods in Vietnam
or delivery of goods where the
seller bears risk relating to the
goods in Vietnam)
Exempt
1%
Services
5%
5%
Supply of goods attached to services where the value is separated:
Goods portion
Services portion
46
Exempt (for goods)
5% (for services)
1% (for goods)
5% (for services)
Supply of goods and some
services where value is not
separated (*)
3%
2%
Construction
3% or 5%
2%
Loan interest
Exempt
5%
Income from royalties
Risk of being taxed at 5%
10%
Other cases where value is not
separated
Highest rate applicable
Highest rate applicable
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
DOUBLE TAXATION AVOIDANCE
AGREEMENT
Vietnam has a solid tax treaty
language and notarized, along with
network, with most treaties following
various Vietnamese Government
the OECD - model treaty. Treaties
forms. In the case the statutory
generally provide for relief from
deadline above is missed, taxpayers
double taxation on all types of
can still retain their right to claim tax
income, limit the taxation by one
treaty benefits as long as the notification
country of companies’ residents in the
is submitted within 3 year from the
other and protect companies’
tax payment due date.
residents in one country from
The documentation can be submitted
discriminatory taxation in the other.
Vietnam’s treaties generally contain
before the payment is made and
Vietnamese tax is withheld, or
OECD-compliant exchange of
alternatively, after tax has been
information provisions.
withheld, in which case, the applicant
Tax relief under Double Taxation
would be seeking a tax refund.
Avoidance Agreement (DTA)
As of August 2019, Vietnam has signed
application is not automatically
granted. Instead, foreign taxpayers
are required to submit certain
notification dossiers to Vietnamese
tax authorities within 15 days prior to
the tax payment deadline.
Notification dossiers normally include
tax residence confirmation, which
must be translated into the Vietnamese
DTA agreements with 80 countries and
territories around the world. The table
below contains the withholding tax
rates that apply to dividend, interest
and royalty payments by Vietnamese
companies to non-residents under
a number of countries.
47
WITHHOLDING TAX RATES UNDER VIETNAM’S TAX TREATIES
48
Treaty Partner
Dividends
Interest
Royalties
Algeria (*)
15
15
15
Australia
10
10
10
Austria
5/10/15
10
7.5/10
Azerbaijan
10
10
10
Bangladesh
15
15
15
Belarus
15
10
15
Belgium (*)
5/10/15
10
5/10/15
Brunei Darussalam
10
10
10
Bulgaria
15
10
15
Cambodia
10
10
10
Canada
5/10/15
10
7.5/10
China
10
10
10
Cuba
5/10/15
10
10
Czech Republic
10
10
10
Denmark
5/10/15
10
5/15
Estonia
5/10
10
7.5/10
Egypt (*)
15
15
15
Finland
5/10/15
10
10
France
7/10/15
0
10
Germany
5/10/15
10
7.5/10
Hong Kong
10
10
7/10
Hungary
10
10
10
Iceland
10/15
10
10
India (*)
10
10
10
Indonesia
15
15
15
Iran
10
10
8/10
Ireland
5/10
10
5/7.5/10/15
Israel
10
10
5/7.5/15
Italy
5/10/15
10
7.5/10
Japan
10
10
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D TAXATION AND CUSTOMS
WITHHOLDING TAX RATES UNDER VIETNAM’S TAX TREATIES
Treaty Partner
Dividends
Interest
Royalties
Kazakhstan
5/15
10
10/15
Korea (North)
10
10
10
Korea (South)
10
10
5/15
Kuwait
10/15
15
20
Laos
10
10
10
Latvia
5/10
10
7.5/10
Luxembourg
5/10/15
10
10
Macedonia (*)
(**)
(**)
(**)
Malaysia
10
10
10
Malta
5/15
10
5/7.5/10/15
Mongolia
10
10
10
Myanmar
10
10
10
Morocco
10
10
10
Mozambique
10
10
10
Netherlands
5/10/15
10
5/10/15
New Zealand
5/15
10
10
Norway
5/10/15
10
10
Oman
5/10/15
10
10
Panama
5/7/12.5
10
10
Pakistan
15
15
15
Palestine
10
10
10
Philippines
10/15
15
15
Poland
10/15
10
10/15
Portugal (*)
5/10/15
10
7.5/10
Qatar
5/12.5
10
5/7.5/10
Romania
15
10
15
Russia
10/15
10
15
San Marino
10/15
10/15
10/15
Saudi Arabia
5/12.5
10
7.5/10
Serbia
10/15
10
10
49
WITHHOLDING TAX RATES UNDER VIETNAM’S TAX TREATIES
Treaty Partner
Dividends
Interest
Royalties
Seychelles
10
10
10
Singapore
5/7/12.5
10
5/10
Slovakia
5/10
10
5/7.5/10/15
Spain
7/10/15
10
10
Sri Lanka
10
10
15
Sweden
5/10/15
10
5/15
Switzerland
7/10/15
10
10
Taiwan
15
10
15
Thailand
15
10/15
15
Tunisia
10
10
10
Turkey
5
10
10
United Arab Emirates
5/15
10
10
Ukraine
10
10
10
United Kingdom
7/10/15
10
10
United States (*)
5/15
10
5/10
Uzbekistan
15
10
15
Venezuela
5/10
10
10
Notes:
(*) These DTAs and the protocols for DTAs have been not yet in force.
(**) The content of some new DTAs were not available at the time this Investment Guide was prepared.
50
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
D TAXATION AND CUSTOMS
OTHER TAXES
SPECIAL SALES TAX
Special Sales Tax (SST) taxpayers include producers and importers of goods and
providers of services that are subject to SST. SST rates are presented in the table below:
GOODS/SERVICES
Cigarettes, other products derived from tobacco plants
• From 1 January 2016 to 31 December 2018
• From 1 January 2019
Spirit/Wine
a) Spirit/Wine with ABV ≥ 20°
• From 1 January 2018
b) Spirit/Wine with ABV < 20°
• From 1 January 2018
Beer
• From 1 January 2018
Automobiles having fewer than 24 seats
TAX RATES (%)
70
75
65
35
65
5~150
Motorcycles with cylinder capacity above 125cm3
20
Aircraft/Yacht
30
Gasoline
7~10
Playing cards
40
Votive papers
70
Dancing club business
40
Massage, karaoke business, betting business
30
Casino business, electronic casino game business
35
Golf course business
20
Lottery business
15
51
ENVIRONMENT PROTECTION TAX
Environment protection taxpayers are organizations, households and
individuals producing and/or importing goods that are subject to the
environment protection tax. The tax rates are presented in the table below:
UNIT
TAX RATE (VND/
UNIT)
Liter/kg
300-1,000
Coal
ton
10,000-20,000
HCFC solution
kg
4,000
Taxable plastic bags
kg
40,000
Herbicides restricted from use
kg
500
Termiticides restricted from use
kg
1,000
Forest product preservatives restricted from use
kg
1,000
Storehouse disinfectants restricted from use
kg
1,000
GOODS
Petrol, oil and grease
REGISTRATION FEE
Organizations and individuals having properties subject to registration fee
must pay the registration fee when registering the ownership and usage rights
previously called registration tax.
II. CUSTOMS DUTY AND PROCEDURES
EXPORT DUTY
Exports are the factor that drives the growth of the Vietnamese economy; therefore,
most of common goods are not subject to export duty. Export duty is applicable to only
the duty rates ranging up to 40 per cent.
IMPORT DUTY
Import duty is generally applied to goods physically crossing or “considered as crossing”
duty rates, which
are determined border based on HS codes and the origins of the goods. Goods originating
categorized as follow:
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D TAXATION AND CUSTOMS
IMPORT DUTY RATE
Special
preferential
rates
MFN rates
Ordinary
rates
Imports from countries that have an FTA with Vietnam. For example:
Korea, Japan, China, Chile, India, the ASEAN members, New Zealand,
Russia, and the EU.
Imports from countries that maintain the Most Favored Nation (MFN)
status with Vietnam. The MFN rates are in accordance with Vietnam’s WTO
commitments and are applicable to goods imported from other member
countries of the WTO.
Imports from countries that neither maintain the MFN status with
Vietnam nor have an FTA with Vietnam. Ordinary rates are generally 50%
higher than MFN rates.
of Origin (“C/O”) accompanying the imported goods.
es, including not only
domestic customs regulations but also guidance issued by the World Customs Organization
DUTIABLE VALUE
EXEMPTION
valuation methods in accordance with
applicable for certain cases including
the WTO Valuation Agreement, in which
but not limited to the followings:
transaction value (i.e. the price paid or
• Raw materials, supplies and
components imported for the
processing of goods for export and
finished products for use in the
processed goods;
• Materials, supplies, components
imported for the manufacturing of
goods for export;
• Machinery & equipment, specialized
means of transportation and
The dutiable value is determined by six
payable for the imported goods, and where
appropriate, adjusted for certain dutiable
priority. Only when the transaction value is
methods for customs valuation be used.
Besides import duty, imported goods
might also be subject to import VAT, SST
Import duty exemption might be
and environment protection tax – all are
construction materials (which cannot
declared and paid at the importation
be produced locally) imported to form
stage.
53
PRIORITY ENTERPRISE STATUS
Businesses that are granted priority
areas or encouraged sectors);
enterprise status are entitled to various
• Certain imports serving petroleum-
privileges, waivers or exceptions of
related activities;
• Goods temporarily imported within a
customs administrative requirements,
including:
• Waiver of certain document
purposes.
Import duty exemption is also applicable
to import transactions of an Export
Processing Enterprise (EPE). An EPE is
considered as an EPE, a company must
commit to export all of its products.
All of the purchases in relation to the
manufacture/processing of exported
assets) are exempted from import duty
requirements during customs clearance,
customs inspection, etc.;
• Exemption from the requirement of
customs audit at customs offices
• The customs authority may conduct
post-clearance audit at the enterprise′s
office only once every three years, on
the basis of risk management, except for
signs of violations of the legislation on
customs.
& import VAT.
To apply for priority enterprise scheme,
REFUND
some of which are as follows:
taxpayers must meet several conditions,
A refund of import duties might be
• Full compliance: No tax offence in two
granted in certain cases, including but not
consecutive years before the application.
limited to the followings:
• Annual export/import turnover: At
• Goods for which import duties have been
least USD 100 million in total; or USD 40
paid but which are not actually physically
million for goods manufactured in
imported;
Vietnam; or USD 30 million for exported
• Imported raw materials that are
agriculture and sea foods manufactured
not used and must be re-exported;
• Imported materials serving the
or grown in Vietnam.
production of products to be sold in the
domestic market, but actually used for
the production of products to be
Once accredited with priority enterprise
status, the status is valid for three years.
exported (either exported abroad or
into the Export Processing Zone (EPZ)).
54
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D TAXATION AND CUSTOMS
CUSTOMS AUDIT
For different business models, different typical customs risks might be triggered.
TYPICAL RISKS
MANUFACTURING/
PROCESSING FOR
EXPORT
EPE
Inventory reconciliation
TRADING &
DISTRIBUTION
N/A
N/A
N/A
Customs valuation
N/A
Certificate of Origin
N/A
The above risks might be exposed before, during, or after the customs declaration
are carried out. Typically, a customs audit shall be conducted if there is any
signal that there may be acts of taxpayers that violate legal requirements, or in
accordance with a specific inspection plan of the customs authorities. The audit
might be performed either at the customs authority offices or at the taxpayer′s
premises.
55
III. LAND RENTAL INCENTIVES
Land rental incentives are mostly governed by the Land Law 2013, and
implementing regulations (including Decree No. 46/2014/ND-CP, Decree No.
123/2017/ND-CP, List of encouraged field & sectors in Decree No. 118/2015/ND-CP
and other specific regulations).
LAND RENTAL
EXEMPTION PERIOD
PROJECT CONDITION
1. PROJECT ENJOYING EXEMPTION OF LAND RENTAL FEE FOR WHOLE RENTAL PERIOD
• Project invest in specially encouraged investment sectors and in
specially difficult socio-economic condition locations
• Mega-projects having total capital of at least VND 6,000 billion(*) in
specially encouraged investment sectors
The whole rental
period
2. PROJECT ENJOYING EXEMPTION OF LAND RENTAL FEE FOR DEFINITE PERIOD
During the fundamental construction period of projects approved
by the competent authorities.
After this 03-year-exemption time, subject to certain conditions, the
investment project could enjoy the land rental fee exemption for further
period as below:
Up to 3 years in
the fundamental
construction period
• Project invest in encouraged investment sectors
3 years
• Project invest in difficult socio-economic condition locations
• Labor-intensive projects in rural areas using at least 500 labors(*)
7 years
• Project invest in:
Specially encouraged sectors; or
Specially difficult socio-economic condition locations; or
Encouraged sectors in difficult socio-economic locations
• Labor-intensive projects in rural areas using at least 500 labors(*)
in encouraged investment sectors
• Mega-projects having total capital of at least VND6,000 billion(**)
11 years
15 years
• Project invest in:
Specially encouraged sectors in difficult socio-economic locations; or
Encouraged sectors in specially difficult socio-economic locations
• Labor-intensive projects in rural areas using at least 500 labors(*)
in specially encouraged investment sectors
• Mega-projects having total capital of at least VND6,000 billion(**)
in encouraged investment sectors
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D TAXATION AND CUSTOMS
3. OTHER SPECIFIC PROJECTS
• Projects located in economic zones and hi-tech zones
requested
Minister
ministerial
Ministers
Governmental agencies and Presidents of the People’s Committees of
provinces
Government or the
Prime Minister (***)
The Prime Minister
shall consider and
decide to grant the
land rent exemption
(*) Labor-intensive projects located in the rural areas using at least 500 full-time employees signing labor
contract of more than one year since official operation (excluding those doing commercial housing business, or
those manufacturing products subject to special sales tax (except automotive) or those exploiting mineral
resources).
(**) Mega-projects (excluding those doing commercial housing business, or those manufacturing products
subject to special sales tax (except automotive) or those exploiting mineral resources), having total capital of
VND 6,000 billion or more, disbursed within 3 years since being licensed.
(***) Of note, the land rental fee exemption period for the projects located in economic zones and hi-tech zones
could be 11 years, 13 years, 15 years, 17 years, 19 years or the whole rental period, which is regulated
separately by Decree No. 35/2017/ND-CP dated 03 April 2017 of the Government (effective from 20 June 2017).
57
HUMAN RESOURCES AND
EMPLOYMENT
58
E HUMAN RESOURCES AND EMPLOYMENT
HUMAN RESOURCES AND
EMPLOYMENT
Vietnam is well-known for a disciplined, hard-working, and fastlearning population. Traditions emphasizing learning and respect
for authority, as well as low wages and a high adult literacy rate, are
often cited by investors as among the most attractive aspects of the
country’s investment environment.
EMPLOYEES’ RIGHTS AND
REMUNERATION
The legal framework for employment
The wage and salary minimum pay
relationships are currently set out
rates schedules are applied, which vary
under the Labor Code, which was
by region. Regulations apply to
enacted in 2012. The stated aims of
overtime, leave and working week.
the Labor Code and relevant guiding
regulations are to create social
An employee may be employed in any
equality, to improve protection for
geographical location not prohibited
employees and employers, and to meet
by law. An individual may be hired
the country’s demand for regional and
directly by an enterprise or via an
international integration.
employment service organization.
Workers generally must be at least
directly in the local market. All
15 years old (except for apprentices
enterprises must report biannually to
working in approved trade training
the provincial department of labor on
centers, who must be at least 13).
their employment levels and projected
employment needs.
59
WORKING TIME
Weekly hours:
40 – 48
Daily break:
1 hour
Daily hours:
8
Overtime:
200 hours/year
(300 hours in special cases)
Overtime payment must be at least
150% of regular wages on normal
work days, at least 200% on weekends
and at least 300% on public holidays
and paid leave days.
WAGES AND BENEFITS
According to Decree No. 90/2019/ND-CP, the region-based minimum monthly
wages applied from 1 January 2020 are as follows:
Region I
Region II
Region III
Region IV
VND 4,420,000
VND 3,920,000
VND 3,430,000
VND 3,070,000
OF WHICH
• Region I includes urban Hanoi,
Hai Phong, Ho Chi Minh City,
Dong Nai, Binh Duong and Ba Ria
– Vung Tau
• Region II includes rural Hanoi,
Hai Phong, Ho Chi Minh City and
medium- sized cities and towns
60
• Region III includes small-sized
cities and towns
• Region IV includes the
remaining less developed areas
of Vietnam
Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
E HUMAN RESOURCES AND EMPLOYMENT
SOCIAL INSURANCE (SI), HEALTH INSURANCE (HI) AND UNEMPLOYMENT
INSURANCE (UI)
The Vietnamese compulsory SIHIUI scheme is applicable to Vietnamese national
3 months
or above.
Foreign employees, however, shall only be subject to the mandatory Vietnamese
HI scheme in the same manner as Vietnamese national employees. Currently,
the SIHIUI contributions for eligible employees are based on the following
prescribed rates:
TYPE OF INSURANCE
EMPLOYEE
CONTRIBUTION
EMPLOYER
CONTRIBUTION
TOTAL
SI
8%
17.5%
25.5%
HI
1.5%
3%
4.5%
UI
1%
1%
2%
TOTAL
10.5%
21.5%
32%
1 July 2019, the common minimum salary being the basis for
the SIHI contribution is VND 1,490,000. The SIHI contribution then is computed
at the lower of the contracted gross income or 20 times the monthly common
minimum salary, currently capped at VND 29,800,000. The cap of UI is 20 times
of the common regional salary, e.g. VND 83,600,000 for Region I.
61
TERMINATION OF EMPLOYMENT
Pursuant to the current Labor Code, a labor
by a court as to have lost civil act
contract is terminated in the following cases:
capacity, be missing or dead.
1. The labor contract expires.
2. The work stated in the labor
7. The individual employer dies or is
declared by a court to have lost
civil act capacity, be missing or
contract has been completed.
3. Both parties agree to terminate the
labor contract.
4. The employee fully meets the
requirements on the time of the
social insurance contributions and
the retirement age (60 for males
and 55 for females).
5. The employee is sentenced to
imprisonment or death, or is
dead; the institutional employer
terminates operation.
8. The employee is dismissed on
disciplinary grounds.
9. The employee unilaterally
terminates the labor contract.
10. The employer unilaterally
terminates the labor contract; the
employer lays off the employee
prohibited from performing the
job stated in the labor contract
under a legally effective judgment
or ruling a court.
due to structural or technological
changes or economic reasons,
merger, consolidation or division
of the enterprise or cooperative.
6. The employee dies or is declared
The Labor Code also specifies certain cases where employer and employee
may unilaterally terminate the labor contract, for example: employee’s failure
to perform the contracted work; reduction in employer’s business scale due to
force majeure events; employee’s inability to continue working due to illness,
accidents or breach of discipline; etc.
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E HUMAN RESOURCES AND EMPLOYMENT
In case of unilateral termination, the employer is required to give 3 days’
under 12 months; 30
45 days’ for an
apply to employees dismissed on disciplinary grounds.
EMPLOYMENT TERMINATION ALLOWANCE
Severance allowance
Except for cases of dismissal on disciplinary grounds, the employee with
working period of 12 months or above shall be entitled to severance allowance
upon termination of a labor contract at the rate of half of one month’s salary for
each working year.
Job-loss allowance
company
allowance” instead of “severance allowance” from the employer if the employee
has been employed for at least 12
company,
each year of service and not less than two full months’ pay in total.
• Calculation of severance and job-loss allowance
Severance
allowance
Time basis
Salary basis
Job-loss
allowance
Time basis
Salary basis
1/2
OF WHICH
• Salary basis is the average of the
working time of the employee
monthly salary under the labor
minus the time of UI contribution
contract within the six consecutive
and the time of being paid with
months preceding the time of
severance allowance from the
contract termination.
employer measured by the
• Time basis is the total actual
number of years.
63
E HUMAN RESOURCES AND EMPLOYMENT
For employees being recruited after 1 January 2009 and having fully contributed to
the compulsory UI scheme, the State Unemployment Agency shall be responsible
for paying severance/job-loss allowance which is also referred to as unemployment
allowance to these employees upon termination of labor contract.
EMPLOYMENT OF FOREIGNERS
To be employed in Vietnam, foreigners must meet the following requirements:
• Be at least 18 years old;
• Be in good health condition necessary to satisfy the job requirements;
• Be in possession of high technical skills or considerable professional experience in
production operation/management;
• Be a manager, an executive director or an expert; and
• Have no criminal convictions, civil record or pending criminal proceedings in
Vietnam or abroad.
WORK PERMIT & VISA APPLICATION
Foreigners must obtain a valid
possess at least 3 years of working
work permit from the local Labor
experience in relevant positions.
Department before working in
The maximum term of a work permit
Vietnam, except for some special
is 2 years. Renewal of a work permit
cases, including “foreigners entering
is required prior to its expiry if the
Vietnam to hold the positions of
foreign employee is still under the
experts, managers, chief executive
assignment term.
In addition, a business visa is
under 30 days and an accumulated
statutorily required prior to a
working period of under 90 days
foreigner’s entry into Vietnam. Upon
per year” as per the recently issued
the expiry of the initial business visa
regulations. This new provision opens
(normally 3 months), applying for
up new opportunities for expatriates
either visa extension or a temporary
working in Vietnam for a short-term
residency card (TRC) is required. Since
duration (i.e. less than 90 days) to
the duration for visa extension is only
be exempted from work permit
less than 12 months, the TRC with a
application. Yet, in order to enjoy such
current limited period of up to 3 years
exemption, the foreign experts must
should be considered in case of long-term
hold a Bachelor degree or above, and
assignment.
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FOREIGN EXCHANGE
CONTROL
65
F FOREIGN EXCHANGE CONTROL
Foreign currency capital for indirect foreign investment must be exchanged
currency for remittance abroad.
similar forms (e.g. conversion/adjustment of prices of goods/services or value of
contracts and agreements) are not allowed to be conducted in foreign currency.
However, foreigners working in Vietnam shall still be allowed to receive
salaries, bonuses and allowances in foreign currency and may deposit these
earnings in interest-bearing foreign currency accounts in Vietnam. Also, the
restrictions on foreign currency earnings, payments and exchange transactions
do not apply to companies operating in EPZs.
Residents and non-residents may
purchase, transfer and take foreign
currency out of Vietnam for the
purpose of payment and money
transfer with respect to current
transactions. The cap on foreign
currency that may be brought out
of Vietnam by individuals is USD
5,000 (or the equivalent in another
currency) and VND 15 million in local
currency. Individuals must provide
supporting documents as requested
by the credit organizations. It is not
necessary to present documentation
to the Vietnamese authorities that
Foreign currency trading on the
foreign currency interbank market is
permitted.
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Doing business in Vietnam 2020. Investing in Vietnam, Engaging the world
Foreign investors may purchase
bank account can be used for this
foreign currency at prescribed banks
purpose, but permission is required
in Vietnam without a permit from the
from the State Bank.
State Bank. Ordinary foreign currency
accounts may be used to service current
account transactions and regulatory
approval is not required. However, a
special, separate foreign currency bank
account is needed to conduct certain
engage in BOT projects with special
requirements.
Nonresident indirect (portfolio)
investors must open indirect capital
term loan repayments; and foreign
currency withdrawals and deposits.
Another special account, known as
a foreign currency deposit account,
may be opened to receive foreign loan
capital, repay foreign loans or at the
accounts in Vietnamese dong at
authorized banks for all transactions
related to the implementation of their
investment in the country. Resident
organizations and individuals may
although this is subject to meeting
requirements imposed by the State
Bank.
67
F FOREIGN EXCHANGE CONTROL
USEFUL WEBSITES
• Ministry of Planning and Investment: http://www.mpi.gov.vn
• Foreign Investment Agency – Ministry of Planning and Investment
• Ministry of Industry and Trade: http://www.moit.gov.vn
• Ministry of Finance: http://www.mof.gov.vn
• State Bank of Vietnam: http://www.sbv.gov.vn
• Vietnam Chamber of Commerce and Industry: http://www.vcci.com.vn
• General Department of Taxation: http://www.gdt.gov.vn/wps/portal
• General Department of Customs: http://www.customs.gov.vn
• State Securities Commission of Vietnam: http://www.ssc.gov.vn
http://www.gso.gov.vn
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