At the invitation of Korean Prime Minister Han Duck Soo, Vietnamese Prime Minister Pham Minh Chinh, his wife and a high-ranking Vietnamese delegation paid an official visit to Korea from June 30 to July 3. The visit strengthened the friendly relations between the two countries and achieved significant outcomes for the advancement of diplomacy. First, A business forum was held, and 23 business agreements (MOU) were signed with 19 Korean companies and institutions, including SK, POSCO, and Hyosung, and 18 Vietnamese companies and institutions. Through the agreement, it was decided to expand trade and investment in industrial fields such as advanced...
DISCOVERIES OF IMPORTING BANNED GOODS BY HO CHI MINH CITY CUSTOMS
According to the Ho Chi Minh City Customs Department, at Tan Son Nhat International Airport, the Customs agency manages and coordinated with competent authorities inside and outside the sector to arrest the illegal transportation of goods such as used electronic devices (on the List of goods banned from import), mainly imported from Singapore and Korea to Vietnam. In May 2024, Tan Son Nhat International Airport Customs Sub-department discovered a violation by the ground staff of a ground service company passing through the internal gate control area that transported 1 paper bag containing 25 used iPhones, Samsung cell phones, and 100 bills...
OCEAN FREIGHT RATES TEND TO INCREASE RAPIDLY AND CONTINUOUSLY
Statistics from Vietnam Maritime Administration show that recently global container shipping fees have increased by 12%, while costs on routes from Asia to Europe have risen by 14%. Also, there are fears that in the coming time, the lack of empty containers could push up sea freight rates to the records set during the COVID-19 pandemic. Container prices have increased due to the following reasons: 1. Limited supply of container ships because ships have to reroute around the Red Sea area due to Houthi attacks 2. Owing to peak season of international market, there is a shortage of empty containers. 3. Chinese...
HICT, ADJUST THE RECEIVING TIME OF CONTAINER FOR EXPORT
HaiPhong International Terminal (TC-HICT) pronounced the adjustment of timeframe for receiving export containers to ensure smooth operations and service quality within the port. Containers destined for loading onto vessels can now only be brought into the port within 4 day period prior to the vessel's Estimated Time of Arrival (ETA). Previously, containers could be brought into the port up to 5 days before the ETA. However, due to increasing port congestion, the time frame has been adjusted to mitigate the problems. The new receiving time frame will take effect starting Thursday, June 20th.
RESOLUTION PASSAGE ON THE EXTENSION OF VAT REDUCTION PERIOD
On June 8, 2024, Vietnamese Government officially issued Resolution No. 83/NQ-CP on the National Assembly's Resolution project on value added tax (VAT) reduction as proposed by the Ministry of Finance in Report No. 127/TTr-BTC If we continue to implement the VAT reduction policy in the last 6 months of the year, the expected budget in 2024 will decrease by VND 47,488 billion; however, this policy will have a positive effect by stimulating production and promoting business activities, thereby generating revenue for the state budget.. The 2% VAT reduction policy is applied to goods and services currently subject to 10% VAT ( 10...
OVERVIEW OF FOREIGN CONTRACTOR TAX IN VIETNAM
Vietnam’s foreign contractor tax (FCT) is a tax that is applied to transactions conducted in Vietnam between a foreign company or sub-contractor and a Vietnamese company. It is made up of two kinds of taxes. Accordingly, the foreign contractor will be subject to FCT including: (1) value-added tax (VAT) and (2) corporate income tax (CIT) if it is an enterprise / or personal income tax (PIT) if it is an individual in accordance with the provisions of the foreign contractor tax law. Vietnam’s foreign contractor tax is applicable when carrying out business in Vietnam under a contract signed with a Vietnamese party...