Finance ministry rejects Long Son Petrochemical proposal for higher import taxes
The Ministry of Finance has disagreed with a proposal by Long Son Petrochemicals (LSP), the investor of the $5.4-billion Long Son Petrochemicals Complex, to raise the most-favored nation (MFN) tax on some plastics products from 0% to 3%.
In a ministerial draft document sent for the government’s approval, LSP and its Thai parent firm Siam Cement Group (SCG) suggested a 3% MFN tax rate on imported polypropylene (PP) and polyethylene (PE) products, under HS codes 3902.90.90, 3901.10.92, 3901.20.00, and 3901.40.00.
The ministry clarified that per the investment certificate granted to LSP, some PP and PE products are already subject to 3% MFN tax, except for the ones under the four mentioned HS codes.
Vietnam currently import 1.2 million tons of PP and PE per year under MFN tax, including 600,000 tons for domestic consumption and 600,000 tons for export-oriented production that are not subject to import taxes.
LSP said its yearly output of 420,000-483,000 tons of PP and 525,000 tons of PE can meet domestic demand.
The finance ministry said the tax changes need serious consideration as they may negatively impact businesses that are not supplied by LSP and imports of such products from nations without free trade agreements (FTA) with Vietnam.
The ministry has proposed two solutions. First, the MFN tax can be set at 2%. That would fortify Vietnam’s support and incentive commitments to LSP as specified in its investment registration certificate and facilitate the development of domestic firms in the sector, it noted. However, the increase in tax revenue might be minimal as firms may adapt by importing from countries that hold FTAs with Vietnam, instead of Middle East nations.
The second solution is not to apply any changes as it would keep prices and supplies stable.
The finance ministry asked relevant sides to submit their opinions to the draft document by December 1, 2023.
- Read More
Malaysia accelerates transition towards high-income country status
The Malaysian government needs to focus on innovation during its drafting of the 13th Malaysia Plan (13 MP) for 2026-2030 in an effort to achieve its high-income country goal.
Southeast Asia - Mon, December 16, 2024 | 10:30 pm GMT+7
Malaysia welcomes ex-Thai PM Thaksin to be its informal adviser on ASEAN
Malaysian Prime Minister Anwar Ibrahim has appointed former Thai PM Thaksin Shinawatra as an informal adviser to assist with the country’s ASEAN chairmanship in 2025.
Southeast Asia - Mon, December 16, 2024 | 10:28 pm GMT+7
Footwear giant Taekwang to spend $19.7 mln on Lunar New Year bonus in Vietnam
South Korean-invested Taekwang Vina JSC, a supplier of Nike in the southern province of Dong Nai, will spend over VND500 billion ($19.7 million) on Lunar New Year (Tet) bonus for its nearly 36,000 employees.
Companies - Mon, December 16, 2024 | 9:56 pm GMT+7
Hong Kong's Sunwah Group eyes investment in southern Vietnam
Multi-sector group Sunwah is keen on surveying several Binh Duong-based industrial parks and foreign-invested enterprises in the areas of high-tech industries, health care, education, and real estate to explore investment opportunities.
Industries - Mon, December 16, 2024 | 8:25 pm GMT+7
Taiwan’s Wistron aims to run $24.5 mln Vietnam plant next month
Taiwan-headquartered Wistron, a top electronics provider and a supplier to Apple, plans to officially start operating its $24.5 million investment in the northern province of Ha Nam next month.
Industries - Mon, December 16, 2024 | 4:41 pm GMT+7
Hanoi plans $420 mln horse racecourse
The Hanoi People's Committee has approved a detailed plan for the Soc Son Urban Area (Zone III), featuring parks, schools, hospitals, high-quality housing, and a $420 million horse racecourse.
Real Estate - Mon, December 16, 2024 | 4:35 pm GMT+7
Vietnam’s cement giant Vicem logs over $55 mln loss in 2024
Vietnam National Cement Corporation (Vicem) has suffered losses for the second consecutive year, with an estimated consolidated figure of VND1.4 trillion ($55.15 million) for 2024, according to a draft annual report by the Ministry of Construction.
Companies - Mon, December 16, 2024 | 4:18 pm GMT+7
Leading broker VPS launches new brand identity
VPS Securities JSC (VPS), a leading broker in Vietnam, officially unveiled its new brand identity on Monday.
Companies - Mon, December 16, 2024 | 3:12 pm GMT+7
VSIP Can Tho in southern Vietnam completes 96% of site clearance, 100 hectares leased
Vinh Thanh Industrial Park (IP), also known as VSIP Can Tho, in Vietnam’s Mekong Delta city of Can Tho, has completed 95.98% of the site clearance.
Industrial real estate - Mon, December 16, 2024 | 12:32 pm GMT+7
Masan Consumer promotes Vietnamese cuisine to international friends
Masan Consumer, the consumer goods arm of Masan Group, recently showcased its products at the 2024 International Food Festival in Hanoi, helping promote the unique cuisine of Vietnam to visitors from across the globe.
Companies - Mon, December 16, 2024 | 11:08 am GMT+7
Dairy giant Vinamilk to spend over $41 mln on interim dividend payment
Vinamilk, the largest dairy firm in Vietnam, plans to spend VND1.045 trillion ($41.3 million) to pay interim cash dividends to shareholders for the second phase of 2024 at a rate of 5%, according to the company.
Companies - Mon, December 16, 2024 | 10:43 am GMT+7
Universal Scientific Industrial to expand Vietnam investment to $290 mln
Mainland China-based Universal Scientific Industrial (USI), an electronics supplier under Taiwan-based ASE Technology Holding, will increase its investment in Vietnam to $290 million.
Industries - Mon, December 16, 2024 | 10:33 am GMT+7
Vietnam property market in the hands of large developers: Savills
Throughout this year, the Vietnamese real estate market has only truly been active for large, well-established developers, according to Savills Vietnam.
Real Estate - Mon, December 16, 2024 | 8:17 am GMT+7
Top 50 signals the recovery of Vietnam's economy
Vietnam's Top 50 Best-performing Companies of 2024 have solid fundamentals, strong management, and substantial room for growth, says Nguyen Thanh Thao, CEO of Thien Viet Securities Joint Stock Company (TVS).
Companies - Mon, December 16, 2024 | 8:00 am GMT+7
Investment policy adjusted for $59 mln wind power project in central Vietnam
Quang Tri province authorities recently approved an adjustment to the investment policy for Hai Anh wind power plant project, with Hai Anh-Quang Tri Wind Power JSC as its investor.
Energy - Sun, December 15, 2024 | 10:06 pm GMT+7
Latvian man on trial for running loan shark ring with 1,380% interest rate
The Ho Chi Minh City People’s Court is holding the first-instance trial of Aigars Plivės, a 39-year-old Latvian national, for engaging in illegal lending through online platforms with interest rates as high as 1,380% per year, earning VND4.15 trillion ($163.35 million) in illicit profits.
Society - Sun, December 15, 2024 | 8:11 pm GMT+7
- Consulting
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
AI can be a game changer for Vietnam tourism
-
In trade and investment, ASEAN and China are better together
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?