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News Bulletin 56 - Week 4 March, 2021
Although vaccinations have started in Vietnam, the actual number of people getting vaccinated are relatively small and the timing of when most of the population get inoculated is still unclear. However, it’s clear that preparations are being made to revive the tourism and hospitality sectors in Vietnam, industries that have been especially hit hard by the pandemic. McKinsey last week reported that Vietnam’s tourism industry could recover by 2024, although everyone is hoping that the recovery can start much earlier than that.
News continue to come out of Vietnam that the government is coming up with concrete actions to collect taxes from e-commerce sellers. With the explosion of e-commerce businesses in Vietnam in recent years, tax revenue from online sellers have been low and the government is keen to start collecting more taxes from online businesses.
The biggest investment news from the past week is the announcement of Long An Province issuing a US$3 billion LNG license for a power plant project to be build by South Korea’s GS Energy and fund management company VinaCapital.
The past week spotlight
Ministry aiming to collect taxes from e-commerce sellers
The Ministry of Finance has asked digital-based businesses and delivery service companies to provide information about e-commerce sellers using their platforms and services so they can be taxed.
Tax authorities have repeatedly asked e-commerce businesses to take responsibility for the tax registrations, declarations and payments of sellers via e-commerce and digital platforms.
Let’s look at some other related financial and business news during the past week:
1. Customs Newsletter – Issue March 2021
This March issue of Customs newsletter will cover notable customs updates with highlights on Certificate of Origin (C/O), Customs declaration procedure and other related tax treatments.
2. Vietnam’s tourism industry could recover by 2024: McKinsey
American management consulting firm McKinsey said in a recently-published article that Vietnam’s tourism sector could recover by 2024 if domestic travel continues to grow and the country maintains its low infection rate.
3. Big hoteliers still flock to Vietnam despite Covid-19
Five-star hotel brands are ready to receive travelers back to the country with the strong belief that the tourism industry is coming back to life.
4. Ripple effect of US fiscal stimulus to Vietnam’s growth
The passage of the $1.9 trillion COVID-19 aid package in the United States will significantly and directly benefit Vietnam’s GDP growth and exports, and may also indirectly help boost stock prices in Vietnam.
5. Global prospects abound for textiles
Vietnam’s textile and garment industry is being transformed to adapt to new challenges by diversifying its export and input markets, thereby lessening the dependence on certain countries.
6. Vietnam-Canada trade revenue hits record high at US$8.9 billion in 2020
Bilateral trade revenue between Vietnam and Canada reached a record high of US$8.9 billion in 2020after two years of implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The figure increased by 12% over 2019 and by 37% compared to 2018, when CPTPP began to take effect.
7. Vietnam sees foreign investment rise to $4.1 billion in first quarter
Vietnam received $4.1 billion in foreign direct investment (FDI) in the first three months of 2021, up 6.5% from a year earlier, government data showed on Saturday.
8. Vingroup eyes $500 mln convertible bond issue in Singapore
Vietnam's biggest private conglomerate, Vingroup, is seeking shareholders' approval to raise $500 million by issuing international redeemable convertible bonds.
The bonds will be issued this year and listed in Singapore, but will not be traded in Vietnam.
9. Long An Province licenses $3-bln LNG power plant
The southern province of Long An has licensed a 3,000-MW liquefied natural gas power plant to be built by South Korea’s GS Energy and fund management company VinaCapital.
10. $90-mln Quang Tri Province industrial zone gets green light
The government has given approval for building a VND2.07-trillion ($90 million) industrial zone in the central province of Quang Tri.
The 481-hectare Quang Tri Industrial Zone will be built in Hai Lang District by the Vietnam-Singapore Industrial Park Joint Venture Co., Ltd., Amata City Bien Hoa JSC, a subsidiary of Thai industrial real estate developer Amata Corporation, and Japan’s Sumitomo Corporation.
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Jack Nguyen Partner - Business Development - Ho Chi Minh City
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