AIRPORT SERVICE FEES TO INCREASE FROM OCTOBER
Airline passengers will have to pay more for tickets starting October 1 when the Ministry of Transport starts applying increased airport service charges to cover investment costs of the airport system and raise service quality. However, the extent of the increase is not expected to be significant and airlines will still offer reduced price tickets.
FIRMS WARY OF 2018 E-INVOICING
Rushing to replace paper bills with e-invoices is expected to pose a challenge to many businesses. The Ministry of Finance is drafting a circular on invoices, noting that paper bills will be replaced by e-invoices from the start of 2018. However, businesses have complained that they are not prepared for the change.
INVESTMENT OPPORTUNITIES IN LOGISTICS SERVICES
In spite of holding numerous advantages for strong development of logistics industry, Vietnam's logistics growth is still very modest. In early 2017, the Prime Minister of Vietnam issued Decision 200/QD-TTg with a view to increasing the share of logistics services to GDP to 8 - 10 per cent in 2025, four times more than now.
REAL ESTATE REMAINS 2ND LARGEST FDI LURER
Despite having fallen to the fourth position in terms of foreign direct investment in the first eight months of 2017, the real estate sector remains the second-biggest recipient of this type of investment to date.
CORPORATE TAX LAW CHANGES WORRY BUSINESSES
The Ministry of Finance (MoF) has announced changes in the Law on Corporate Income Tax (CIT) to better regulate and monitor the level of equity and taxable income for firms operating in Việt Nam.
FINANCE MINISTRY OPPOSES HIGH INCENTIVES FOR SPECIAL ECONOMIC ZONES
The Ministry of Finance (MoF) has expressed its disagreement with certain incentive mechanisms for businesses and individuals working in special economic zones in three provinces.
MINIMUM WAGE HIKES SEEN SENDING PRODUCTION COSTS SOARING
The forthcoming spikes in the region-based minimum wages are expected to improve workers' incomes but production costs in labor-intensive industries will certainly pick up.
VAT HIKE PROPOSAL: FURTHER CONSIDERATION NEEDED
The Ministry of Finance’s recent proposal for a hike of value-added tax (VAT) from 10 per cent to 12 per cent from early 2019 is stirring up public concerns. In the event that people's livelihoods and business performances are still hard, applying a higher tax rate will force them to carry a heavier burden.
