Will Vietnam become competitive soon?

19.12.2012

In 2014, the Vietnamese government plans to reduce the corporate tax rate. The Ministry of Finance plans to submit a bill to the National Assembly, which will focus on the introduction of amendments to the Tax Code to reduce the corporate tax rate.

In December 2012 in Hanoi Business Forum was held in which it was noted that the current corporate tax rate - 25% - does not allow Vietnam stand in one line with the leading Asian jurisdictions, which has a very negative impact on both the national and an international investment. It was also noted that most of the Asian countries have much more "soft" corporate tax policy, for example, this year, Thailand has reduced the corporate tax rate to 23%, and next plans to reduce it to 20%.

Thus, the Vietnamese authorities have decided that in 2020 they will pursue a policy of reducing the corporate tax. The first step of the policy should be to reduce the corporate tax rate to 23% by January 2014.

On the basis of:http://www.tax-news.com/news/Vietnam_To_Cut_Corporate_Tax_Rates_In_2014____58799.html

Expert’s opinion

“Worldwide tendency of reducing draconian taxes finally came to Indochina market. When will this wave come to the post-Soviet market?

Surely these actions will activate small and medium business especially in tourist sphere. But it is premature to hope that investments will flow to Vietnam”.

Yaroslav Lomakin ( Managing partner of “Honest and Bright”)