Finance ministry rejects lower tax proposals by Ford, Toyota

By Tri Duc
Fri, November 24, 2023 | 10:53 am GMT+7

Vietnam’s Ministry of Finance has disagreed with proposals made by Ford, Toyota, and the Vietnam Automobile Manufacturers' Association (VAMA) for lower taxes, according to a ministerial draft document sent for the government’s approval.

Prime Minister Pham Minh Chinh visits a Ford factory in Hai Duong province, northern Vietnam on March 15, 2023. Photo courtesy of the government's news portal.

Prime Minister Pham Minh Chinh visits a Ford factory in Hai Duong province, northern Vietnam on March 15, 2023. Photo courtesy of the government's news portal.

Ford calls for easier conditions of tax policies

In order to qualify for preferential tax policies, automakers must meet requirements related to components, models, output, exhaustion, and others, within a period of six or 12 months for tax calculation, per the government’s Decree 26/2023 and Decree 125/2017 with relevant amendments.

The VAMA and Hai Duong province, home to a Ford factory in Vietnam, urged the finance ministry to consider Ford’s suggestion to lower the output conditions in preferential tax policies.

In reply, the ministry said the preferential tax policies aim to encourage automakers to enlarge production and investment in Vietnam. Additionally, during the peak of the Covid-19 pandemic in 2021, per the finance ministry’s recommendations, the government issued new decrees to set easier conditions for such preferential policies. These rules continued beyond the pandemic into the latest Decree 26/2023.

The country has already granted various supporting policies, so the finance ministry has called on the government to continue with the current legal framework on preferential tax policies.

Toyota seeks expansion of tax policies

Toyota Vietnam called on the Ministry of Finance to expand the most-favored nation (MFN) tax rate of 0% to more components under group 98.49 of Decree 125/2017.

The finance ministry replied that some suggestions of Toyota, such as products under HS codes 3926.90.99; 7326.90.99; 8708.99.62; and 8708.99.70, did not come with clear details so the ministry could not consider the proposal.

The ministry also rejected Toyota’s suggestions for other products, such as pipes, screws, bolts, frames, and steel or metal accessories as those products can be made in Vietnam. Therefore, encouraging domestic production is more suitable, it affirmed.

According to data of the VAMA and automakers in Vietnam, Hyundai was the best-selling brand in Vietnam in the first 10 months of this year with 48,626 units. Other top players were Toyota with 42,531; Ford with 29,546; Mitsubishi with 24,013; Honda with 17,218; and Suzuki with 11,528.

Comments (0)
  • Read More
Chinese e-commerce giant Temu receives tax code, still unlicensed

Chinese e-commerce giant Temu receives tax code, still unlicensed

Temu, the e-commerce platform under China’s PDD Holding, has been given tax identification number 9000001289 for its tax duty in Vietnam, says the General Department of Taxation (GDT) under the Ministry of Finance.

Companies - Tue, November 5, 2024 | 12:05 pm GMT+7

Korea soju producer HiteJinro targets annual output of 70 mln liters in Vietnam

Korea soju producer HiteJinro targets annual output of 70 mln liters in Vietnam

South Korea's HiteJinro, a leading producer of traditional alcoholic beverage soju, targets an annual output of 70 million liters of soju and fruit-flavored soju under the Jinro brand for its to-be-built factory in Vietnam.

Industries - Tue, November 5, 2024 | 10:13 am GMT+7

Vietnam stock market may receive $9 bln from overseas funds once upgraded: Morgan Stanley

Vietnam stock market may receive $9 bln from overseas funds once upgraded: Morgan Stanley

International funds may pour up to $9 billion into Vietnamese equities once Vietnam’s stock market status is upgraded from a frontier to an emerging market, says a Morgan Stanley representative.

Finance - Tue, November 5, 2024 | 9:33 am GMT+7

Vietnam oil & gas sector’s Q3 profits up for upstream firms, down for downstream firms

Vietnam oil & gas sector’s Q3 profits up for upstream firms, down for downstream firms

Upstream oil and gas companies in Vietnam reported robust profit growth in the third quarter of this year, but downstream peers were hit by declining oil prices.

Companies - Tue, November 5, 2024 | 8:01 am GMT+7

Indonesia targets comprehensive fuel subsidy scheme reform

Indonesia targets comprehensive fuel subsidy scheme reform

Indonesian Energy Minister Bahlil Lahadalia has said the country is conducting a thorough exercise to reform its fuel subsidy scheme.

Southeast Asia - Mon, November 4, 2024 | 10:50 pm GMT+7

Tech companies invest in data centers in Thailand

Tech companies invest in data centers in Thailand

Thailand’s Board of Investment (BOI) has approved investment support for two large data centre projects in the country worth over THB60 billion ($1.7 billion).

Southeast Asia - Mon, November 4, 2024 | 10:49 pm GMT+7

Indonesia upgrades sea wall system to protect Jakarta

Indonesia upgrades sea wall system to protect Jakarta

Indonesian Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono has stated that the construction of sea walls was one of the priorities of President Prabowo Subianto.

Southeast Asia - Mon, November 4, 2024 | 10:47 pm GMT+7

Where real estate and urban development meet

Where real estate and urban development meet

The Transit-Oriented Development (TOD) itself, if properly planned and implemented, can lower the barrier to the use of public transport, lessen the dependency on private vehicles, contributing to the liveability of communities and cities, write Avison Young Vietnam analysts.

Consulting - Mon, November 4, 2024 | 8:49 pm GMT+7

AI helps sellers offer competitive prices on e-commerce platforms: Lazada trainer

AI helps sellers offer competitive prices on e-commerce platforms: Lazada trainer

When sellers carry out promotions on e-commerce platforms, artificial intelligence can help ensure their prices remain competitive, says Nguyen Tran Tin, a seller and trainer at Lazada Academy.

Companies - Mon, November 4, 2024 | 8:07 pm GMT+7

Vietnam plans $7.3 bln rail route linking 2 northern provinces bordering China

Vietnam plans $7.3 bln rail route linking 2 northern provinces bordering China

Vietnam Railway Authority under the Ministry of Transport has proposed a 448-km long, VND183,856 billion ($7.26 billion) route running between the northern provinces of Lao Cai and Quang Ninh, both sharing a border with China.

Infrastructure - Mon, November 4, 2024 | 7:14 pm GMT+7

Vietnam agribusiness HAGL trains focus on domestic market, inks pact with Kingfoodmart

Vietnam agribusiness HAGL trains focus on domestic market, inks pact with Kingfoodmart

Vietnamese agri major Hoang Anh Gia Lai JSC (HAGL) is looking to tap domestic market potential afresh by distributing its products through the Kingfoodmart supermarket chain.

Companies - Mon, November 4, 2024 | 7:08 pm GMT+7

Mixed performance by Vietnam commercial banks in Q3

Mixed performance by Vietnam commercial banks in Q3

Vietnamese commercial banks have had a mixed third quarter, with some reporting substantial profit gains while others seeing steep declines or even losses.

Banking - Mon, November 4, 2024 | 4:52 pm GMT+7

Vietnam’s Vingroup, UAE's NMDC to collaborate in offshore wind power

Vietnam’s Vingroup, UAE's NMDC to collaborate in offshore wind power

Vietnam’s leading conglomerate Vingroup and the UAE-based NMDC Group will collaborate in offshore wind power, the latter said in a recent filing sent to the Abu Dhabi Securities Exchange (ADX).

Energy - Mon, November 4, 2024 | 4:20 pm GMT+7

Military-run Viettel Group has 2 more deputy general directors

Military-run Viettel Group has 2 more deputy general directors

General Phan Van Giang, Minister of National Defence, has appointed Cao Anh Son and Nguyen Dat as deputy general directors of Military Industry and Telecommunications Group (Viettel Group), starting last Friday.

Companies - Mon, November 4, 2024 | 3:14 pm GMT+7

Mega Long Thanh airport first phase should be completed in Sept 2026: senior parliament official

Mega Long Thanh airport first phase should be completed in Sept 2026: senior parliament official

Relevant agencies should prepare to complete the first phase of the $14-billion Long Thanh International Airport project on September 2, 2026, as soon as the Vietnamese National Assembly approves changes to the project, said a senior parliament member.

Infrastructure - Mon, November 4, 2024 | 12:44 pm GMT+7

Fed rate cuts, upgrading efforts to lure foreign investors back into Vietnam stock market: VinaCapital

Fed rate cuts, upgrading efforts to lure foreign investors back into Vietnam stock market: VinaCapital

The U.S. Fed’s rate cut cycle and the Vietnamese government’s fresh efforts to upgrade the local stock market status are likely to bring foreign investors back into the stock market next year, according to VinaCapital.

Finance - Mon, November 4, 2024 | 11:42 am GMT+7