Despite the continual challenges caused by Covid-19 to the country’s economy, Vietnam continues to receive encouraging news about foreign direct investments during the first two quarters of the year. Vietnam expects 2020’s GDP growth to be 4-5%. The opening of the domestic market as committed in the EU – Vietnam Free Trade Agreement (EVFTA) has also contributed to the strong penetration of foreign businesses to the domestic market recently.
Last week, Minister of Industry and Trade Tran Tuan Anh has signed Circular 11/2020/TT-BCT about rules of origin in the European Union – Viet Nam Free Trade Agreement (EVFTA) which would be an important legal basis for granting certificates of origin for goods exported to the EU to enjoy preferential tarifss provided by the trade deal.
The past week spotlight
Circular about origin rules in EVFTA issued
The circular about rules of origin in the European Union - Viet Nam Free Trade Agreement was issued. Photo by tapchicongthuong.vn
Minister of Industry and Trade Tran Tuan Anh has signed Circular 11/2020/TT-BCT about rules of origin in the European Union – Viet Nam Free Trade Agreement (EVFTA).
The circular would come into force on August 1, also the day the trade deal would take effect.
With five chapters and 42 articles, the circular would be an important legal basis for granting certificates of origin (C/O) for goods exported to the EU to enjoy preferential tariffs provided by the trade deal.
Let’s look at some other related financial and business news during the past week:
1. Coronavirus made Vietnam shut its borders. Now it's allowing flights from Japan for the first time
A planeful of Japanese business travelers landed in Vietnam on June 25, marking the first flight between the two countries since they imposed border restrictions in a bid to stop the spread of coronavirus.
Vietnam almost completely sealed off its borders to foreign nationals in March, while Japan currently bans residents of more than 100 countries and regions -- including Vietnam.
2. Finance ministry says public investment funds borrowed from abroad must be disbursed quicker
Loans borrowed from abroad for public investment must be disbursed quicker if Vietnam is to recover economically from the impacts of the coronavirus pandemic, according to the Ministry of Finance. Deputy Minister of Finance Tran Xuan Ha told a conference on Thursday that disbursing public investment funds and loans from abroad for public investment, in particular, remained key issues as huge sums must be spent in the second half of this year.
4. VEPR urges tax policies for FDI to be revised to prevent tax avoidance and evasion
Vietnam needs to revise tax and land policies for foreign direct investment (FDI) companies to ensure a level playing field for businesses.
[…] There are many channels of tax evasion and avoidance, including transfer mispricing, strategic location of intellectual properties, international debt shifting, tax treaty shopping, tax deferral, and corporate inversions.
5. Hanoi receives 36 proposals for investment cooperation worth $26b
The capital city of Hanoi as of Monday received 36 proposals for memorandums (MoU) of understanding for investment cooperation, which were estimated to be worth more than US$26 billion in total. The proposed MoUs were expected to be signed at the upcoming investment promotion conference themed “Hanoi 2020 – Investment Cooperation and Development” scheduled for June 26.
Among them, 23 proposals were from domestic companies and 13 from foreign enterprises and organisations.
6. Ministry to ask government to fund part of Hanoi – China border expressway
The Ministry of Planning and Investment wants the government to provide 39.4 percent of the cost of an expressway to the China border.
If it agrees, the government will provide VND3 trillion ($129 million) out of the VND7.6 trillion ($328 million) cost of the 43-kilometer Huu Nghi – Chi Lang Expressway in the northern province of Lang Son, which is expected toease travel between Hanoi and the border.
8. No chance of resuming international flights in July: experts
Vietnamese carriers’ plans to resume international flights next month will come to naught, given fresh Covid-19 outbreaks in Asia and other factors, experts say. "In this current situation, the reopening of international commercial flights from July 1 as planned by Vietnamese carriers in which passengers are not subject to the 14-day quarantine is unfeasible," Luong Hoai Nam, member of the Tourism Advisory Board (TAB), told VnExpress.
9. PM approves suspension of Bac Van Phong SEZ plan
PM Nguyen Xuan Phuc has approved the suspension of a master plan to develop the Bac Van Phong special economic zone in Khanh Hoa Province until the National Assembly agrees to pass the law on special administrative and economic zones.
Mazars Vietnam together with MoF, Smart Train and ACCA Vietnam will be hosting a webinar named “How to apply IFRS and tips for successful conversion”. This webinar is designed with the purpose of helping a wide range of entities in IFRS conversion.
The business landscape in the last year has changed, with many being moved out of their comfort zones and regularities. As businesses focus on re-calibrating and driving new possibilities, human capital remains equally, if not more, important.