With Danang in lockdown and a return of Covid-19 community transmission, there is a sense of worry and concern about the pandemic’s renewed negative impact on the business community in Vietnam. Regarding the EU-Vietnam Free Trade Agreement (EVFTA), last week, on August 6, 2020 at a video conference in Hanoi, Minister of Planning and Investment Nguyen Chi Dung submitted an action plan of four groups of solutions to ensure the smooth implementation of the EU-Vietnam Free Trade Agreement (EVFTA).
The past week spotlight
MPI proposes four groups of solutions for EVFTA implementation
Photo: The Minister of Planning and Investment outlining the solutions to implement the EVFTA
The Minister of Planning and Investment laid out the action plan at a video conference on August 6 to ensure the smooth implementation of the EVFTA and that both sides can maximise benefits from the agreement.
The minister outlined four groups of solutions. Notably, the first solution group would increase the organisation of investment promotion programmes and conferences to disseminate Vietnam’s commitment to local authorities and the business community.
The investment promotion programmes would aim to increase the awarness of foreign investors, particularly EU enterprises about Vietnam’s commitments to open its market and liberalise investment.
Let’s look at some other related financial and business news during the past week:
1. Wide impacts to be made with new law changes
Effective in 2021, the amended laws on Enterprises, Investment, and Public-Private Partnership are expected to entail breakthrough changes to Vietnam’s business and investment landscape in the coming time, notably amid the entry into force of the landmark EU-Vietnam Free Trade Agreement. Tran Hao Hung, director of the Legal Department under the Ministry of Planning and Investment shines light on the fresh changes in the laws and their impacts on the country’s investment picture.
5. Vietnam receives positive view in global exports as EVFTA takes effect: report
Vietnam is expected to continue growing its share of global exports despite decline amid the resurgence in the COVID-19 pandemic after three months of no local transmissions, according to an HSBC report.
7. Wooden plank exporters struggle with higher tax rates
The Vietnam Timber and Forest Product Association has sent an urgent petition to the Ministry of Finance, Ministry of Agriculture and Rural Development and Ministry of Industry and Trade about congestion of wooden planks set for export at ports.
9. China no longer top clothes exporter to US as Vietnam gains market share
US apparel imports from China, by value, dropped from almost 30 per cent in 2019 to 20 per cent in the first half of 2020, now on par with Vietnam after the Southeast Asian nation improved its market share from 16 per cent over the same period, according to the US Department of Commerce.
Following the Government's Resolution No. 178/NQ-CP dated 12/12/2020, on 23/02/2021 the General Department of Customs (“GDC)” issued Official Letter No. 879/TCHQ-TXNK guiding the tax treatment for imports being materials used for export-production in which part of the production process is being outsourced to 3rd party vendor.
On 30 December 2020, The Government promulgated Decree No. 152/2020/ND-CP regarding foreign employees working in Vietnam (“Decree 152”). Decree 152 is effective from 15 February 2021 and replaces Decree No. 11/2016/ND-CP (as amended by Decree No. 140/2018/ND-CP).
On 25/01/2021, the Ministry of Finance issued Circular no. 07/2021/TT-BTC ("Circular 07") providing guidance on the deadline to submit Certificate of Origin (“C/O”)(1) for goods imported into Vietnam under EU-Vietnam Free Trade Agreement (“EVFTA”).