Vietnamese Prime Minister Pushes for Uniform Framework for Investment Incentives - Vietnam Briefing News
By Nhung Le and Huyen My
Aug. 3 – On July 20, Deputy Prime Minister Hoang Trung Hai issued a document (Official Dispatch No. 5336/VPCP – KTTH) directing the Ministry of Planning and Investment (MPI) to research and create a national framework for investment incentive categories and investment incentive areas. This followed a July 6 submission to the Prime Minister of reports compiled by MPI detailing the Ministry’s recommendations on the issue.
According to this document, MPI will be responsible for collaborating with other Ministries, Departments, faculties, and regional governments to build a common stance on investment incentives. This national framework is tasked with pursuing economic growth and must incorporate the suggestions received from these authorities as well as any international commitments that Vietnam is currently engaged in.
This document also provides for the implementation of the final agreed upon form of the common framework for incentive categories and incentive areas. The framework will replace the current regulations on these matters.
Recently, due to the lack of an agreed upon framework for investment incentives, companies attempting to invest in Vietnam have faced many complications. Because of the confusion there have been continuous unreasonable requests from locals and investors about investment incentives. The incongruity in various incentive schemes is the result of a disconnect between those who write the regulations and those who implement them. The overarching incentives are written and submitted by MPI to the government, and are determined according to the Law on Investments that is promulgated by the National Assembly. However, during actual implementation procedures, each individual authority rewrites the regulations as they apply to their areas of jurisdiction. Hence the regulations from different departments do not match.
In short, constructing a national framework of investment incentives has been seen as necessary action to make sure that local investment managers follow the proper orientation of the nation’s development strategy. A unified investment incentive structure will create a better investment climate for interested investors into this emerging, promising nation.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
For further details or to contact the firm, please email [email protected], visit www.dezshira.com, or download the company brochure.
You can stay up to date with the latest business and investment trends across Vietnam by subscribing to The Vietnam Advantage, our complimentary update service featuring news, commentary, guides, and multimedia resources.
Outsourcing to Vietnam through the New Labor Code
Vietnam Introduces Favorable Tax Policies for Certain Entities
A New Wave of FDI into Vietnam
Vietnam’s Key Investment Laws