The recent resurgence of the COVID-19 pandemic has overshadowed the glimmer of hope for an early economic recovery for Vietnam. Experts forecast that Vietnam could be facing its lowest level of economic growth in 35 years.
At the beginning of August, it’s noticeable that The Prime Minister has approved a plan to implement the EU-Vietnam Free Trade Agreement (EVFTA).
The past week spotlight
PM approves implementation plan for EVFTA
Under the plan, ministries, agencies, and localities are urged to focus on publicizing the terms of the trade deal, disseminating information about the European market, crafting legislation, sharpening competitiveness, and developing human resources.
The PM said Vietnam will continue to carry out trade and promotion activities in EU countries so European investors can learn about business and investment opportunities in Vietnam. He asked ministries, agencies, and localities to continue to provide training for micro, small, and medium-sized enterprises and farmers to enhance their competitiveness in order to further integrate into global and regional supply chains and take full advantage of the agreement.
3. Decree aims to ensure companies benefit from corporate income tax cut
A decree has been published to guide the implementation of a National Assembly resolution offering firms a 30 per cut corporate income tax (CIT) cut.
The draft is up for comment, while the resolution came into effect on August 3. Under the draft, the tax cut would be given to enterprises with total revenue of less than 200 billion VND (8.62 million USD) in 2020 – those considered the most vulnerable to the COVID-19 pandemic’s negative impacts.
The domestic market can support local production and business in the context of the serious developments of the COVID-19 pandemic, said Deputy Minister of Industry and Trade Do Thang Hai at a meeting in Hanoi on August 12.
10. 120,000 people to lose HCMC jobs amid fresh Covid-19 outbreak
Around 120,000 employees of 4,000 businesses in HCMC are likely to be laid off from now until September with the resurgence of Covid-19 community transmissions.
The majority of these employees work in the tourism and accommodation sectors, construction, transportation and textiles and footwear companies, said Le Minh Tan, director of the municipal Department of Labor, Invalids and Social Affairs.
On 18 June 2021, the Ministry of Finance issued Circular 45/2021/TT-BTC (“Circular 45”) providing guidance on the implementation of Article 41 of Decree 126/2020/ND-CP (“Decree 126”) dated 19 October 2020 of the Government on the application of the Advance Pricing Agreement (“APA”) on tax administration for companies having transactions with their related parties.