Vietnam plans to cut import tax for LNG to 2%
Vietnam’s Ministry of Finance is drafting a decree on preferential import tax for some products, including a proposal of 2% tax rate for LNG.
The draft decree is part of the ministry’s efforts to implement the Prime Minister’s request of adapting to the global development to ensure macroeconomic growth and stability.
A key task for the finance ministry is to update the tax scheme for key partners, especially the United States - a comprehensive strategic partner of Vietnam.
Nhon Trach 3 LNG-fired power plant in Dong Nai province, southern Vietnam. Photo courtesy of PV Gas.
The ministry clarified that the current import tax rate on LNG is 5%, per the most-favored nations (MFN) scheme, on par with Vietnam’s commitment with the World Trade Organization (WTO).
In line with other free trade agreements (FTA), the rate is 0%, except for 1.2% under the Europe-Vietnam FTA (EVFTA) and UK-Vietnam FTA (UKVFTA), 1% with the Vietnam-China FTA (VCFTA), and 5% with the ASEAN-Australia-New Zealand FTA (AANZFTA).
Besides, there is a 10% value added tax (VAT).
In the draft decree, the ministry suggested the tax rate can go down from 5% to 2% for LNG under the HS code 2711.11.00. The move can encourage the import of low-emission LNG, reduce the import cost, and help cut the price of LNG-fired power amid the growing demand for electricity.
The ministry estimates that the tax decrease can lead to a reduction of $3.2 million in tax revenue from LNG import.
Vietnam spent $150.3 million on importing LNG in 2024, including $96.5 million (64.23% of the total) per MFN tax and $53.7 million (35.77% of the total) per FTA tax.
- Related News
- Read More
VSAP LAB to build $69 mln chip packaging tech laboratory in central Vietnam
Vietnamese private firm VSAP LAB JSC has been approved as the investor of a VND1.8 trillion ($69.11 million) advanced packaging technology laboratory project that will assist semiconductor production in the central city of Danang.
Industries - Fri, June 6, 2025 | 8:11 pm GMT+7
Vietnam's major property developer Hoang Huy successfully raises $30.7 mln from parent company
Hoang Huy Investment Services JSC (HoSE: HHS) has successfully issued 64 million shares for VND800 billion ($30.7 million) via private placement to its parent company – Hoang Huy Financial Services Investment JSC (TCH).
Companies - Fri, June 6, 2025 | 3:32 pm GMT+7
Subsidiaries, affiliates likely not to enjoy preferential corporate income tax in Vietnam
Subsidiaries and affiliates of enterprises in Vietnam might not be eligible for preferential corporate income tax (CIT) rates of 15-17%, in order to prevent abuse of incentives like splitting income for tax avoidance, according to the Financial and Economic Committee under the National Assembly, the country's legislature.
Finance - Fri, June 6, 2025 | 3:22 pm GMT+7
VPS Securities JSC named Vietnam’s best broker again by The Asset
VPS Securities JSC (VPS) has once again been honored as the “Best Brokerage House in Vietnam” at the Triple A Awards 2025, presented by The Asset, a leading Asia-focused financial publication.
Companies - Fri, June 6, 2025 | 11:40 am GMT+7
Vietnam's agri major BAF eyes two 6-story buildings for pig farming in southern Vietnam
BAF Vietnam Agriculture JSC has submitted a proposal to the Ministry of Agriculture and Environment to develop a smart pig farming complex including two six-story buildings in the southern provinces of Tay Ninh and Binh Phuoc.
Industries - Fri, June 6, 2025 | 11:20 am GMT+7
Food major Kido leaders reveal real estate ambitions
Leaders of Kido Group, a leading Vietnamese food and cooking oil producer, said they see many positive policies that are helping to ease real estate market difficulties and create favorable conditions for the company to develop projects on its land reserves.
Real Estate - Fri, June 6, 2025 | 11:03 am GMT+7
Indonesia accelerates procedures to join OECD
The Indonesian Government has finalised the preparation of the Initial Memorandum (IM) for its accession to the Organisation for Economic Co-operation and Development (OECD), which will be submitted to OECD Secretary-General Matthias Cormann in Paris, France.
Southeast Asia - Fri, June 6, 2025 | 10:16 am GMT+7
OECD lowers Indonesia's growth forecast to 4.7%
The Organisation for Economic Cooperation and Development (OECD) has lowered its forecast for Indonesia's economic growth down to 4.7% this year, from the previous 4.9%, due to weakened domestic sentiment and heightened external risks.
Southeast Asia - Fri, June 6, 2025 | 10:15 am GMT+7
Vietnam, US sign additional agricultural trade deals worth over $600 mln
Vietnam and the U.S. on Wednesday signed MoUs on importing animal feed materials from Ohio state with total value exceeding $600 million.
Economy - Fri, June 6, 2025 | 10:03 am GMT+7
My Thuy deepwater port to become central Vietnam logistics hub
My Thuy Deepwater Port, once operational, will not only create a new growth pole for the central province of Quang Tri and serve as a gateway to the East Sea, but also become a regional logistics hub.
Infrastructure - Fri, June 6, 2025 | 8:00 am GMT+7
Vietnam's 5-month registered FDI hits $18.4 bln, up 51%
Registered foreign direct investment (FDI) in Vietnam hit $18.4 billion in the first five months of the year, up 51.1%, while disbursed capital reached $8.9 billion, up 7.9%.
Economy - Thu, June 5, 2025 | 6:52 pm GMT+7
Indonesia launches economic stimulus package to boost purchasing power
The Indonesian Government has rolled out an economic stimulus package worth IDR24.44 trillion (nearly $1.53 billion) to maintain consumer purchasing power and stabilize the national economy.
Southeast Asia - Thu, June 5, 2025 | 4:06 pm GMT+7
Vinhomes subsidiary to develop two industrial parks worth $383 mln in northern Vietnam
Vinhomes Hai Phong Industrial Park Investment JSC under Vinhomes, the housing arm of Vietnam’s conglomerate Vingroup (HoSE: VIC), is expected to be the investor of two industrial parks worth VND10 trillion ($383 million) in the northern port city of Hai Phong.
Real Estate - Thu, June 5, 2025 | 3:54 pm GMT+7
Agriculture drives Indonesia’s economic growth
Agriculture is emerging as a key driver of Indonesia’s economic growth, especially in the first quarter of 2025, according to the latest report by the Indonesian Institute for Development of Economics and Finance (INDEF).
Southeast Asia - Thu, June 5, 2025 | 3:46 pm GMT+7
Vietnam's logistics heavyweight Gemadept plans over $38 mln buyback if shares plunge
Gemadept, Vietnam's leading port and logistics company, listed on the Ho Chi Minh Stock Exchange as GMD, plans to buy back 21 million shares, equivalent to 5% of its outstanding shares.
Companies - Thu, June 5, 2025 | 3:32 pm GMT+7
Vietnam, US to hold third round of reciprocal trade pact talks in first half of June
The third technical round of negotiations for a reciprocal trade agreement between Vietnam and the U.S. is expected to take place in the first half of June, as agreed by their trade ministers on Wednesday.
Economy - Thu, June 5, 2025 | 3:22 pm GMT+7
