-
 Our
investment incentive regulations are quite complex. As a result,
businesses are unsure about which incentives they are eligible
for, and by how much. For example, to date there has been no
single document providing a comprehensive list of investment
locations eligible for both tax exemptions and land rental fee
exemption (for foreign-owned companies) and land-use fee
exemptions (for Vietnamese firms and individuals). In practice,
businesses must refer to different lists of preferential
locations, spread across various legal documents, in order to
identify an incentive for themselves.
The eligibility conditions for investment incentives are not
sufficiently clear. A regulation like “An enterprise will enjoy
a 50% reduction in the payable tax amount on the income
generated from export of a new line of goods with economic or
technical characteristics that are different from those which
the enterprise previously exported,” is too vague for a business
to know whether it is eligible or not. And there is no detailed
guidance on how a product can be determined as having new
economic or technical properties.
Mr. Ta Quoc Khanh, Deputy Director,
Consultancy and Project Development Center, InvestConsult Group
-
 Our
incentive schemes are complicated. This is due to several
reasons. First, the incentive structure is complex because we
want to achieve various ambitious objectives with each incentive
instrument, such as encouraging capital-intensive or
labor-intensive firms, promoting technology transfer, etc.
Secondly, incentives are spread out across various legal and
policy documents. Thirdly, our incentive policies lack
consistency. Before the enactment of the tax law, incentives
were based on the master plan for each industry. But the tax law
and specifically Decree 164 use tax incentives to pursue other
economic development policies.
Mr. Pham Manh Dzung, Head of Legal Department, MPI
& Head of CIL Drafting Committee
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