Weekly News Bulletin - No. 04, November 2022

A total of 39 foreign suppliers have registered tax in Vietnam, according to the Tax Agency for Large Businesses at the General Department of Taxation.

Among them are Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple that account for up to 90% of the market share in the field of cross-border e-commerce. Some 22.2 million USD has been collected via the portal which was exclusively developed for foreign suppliers and put in place on March 21. The tax agency will step up the communication work in the time ahead to further facilitate tax registration, declaration and payment in Vietnam in line with the country’s commitments and regulations on added value and corporate income taxes for cross-border services.

Việt Nam’s export turnover to Germany enjoyed a year-on-year surge of 30.5 per cent to USD7.6 billion in the first 10 months of this year, according to the Ministry of Industry and Trade. Meanwhile, the import value was USD2.96 billion, a slight decrease compared to the same period last year.

In the period, two-way trade reached nearly USD10.6 billion, up 17.6 per cent year-on-year. Vietnam mainly shipped machinery, component parts, automobiles, footwear, garment and textiles, coffee and aquatic products to Germany, while importing machines, components, parts, pharmaceuticals, chemicals, and automobile spare parts to the European country. Germany is currently Vietnam’s biggest trade partner in Europe, accounting for 20 per cent of the Southeast Asian country’s total trade value to the EU.

Last week highlight

Vietnam advised to produce green, clean goods to win over European consumers. According to the European Chamber of Commerce in Vietnam (EuroCham), Vietnamese companies must understand trends in the EU consumer market, which is undergoing a significant shift towards green and clean goods that meet international labour and environmental standards.

At a seminar on exporting to the market held in Ho Chi Minh City last week, EuroCham Vice President Jean-Jacques Bouflet said the EU market is interested in the production processes. “So enterprises must anticipate this trend to accelerate the effective implementation of the EU-Vietnam Free Trade Agreement (EVFTA).” The EU has a set of policies and actions called the European Green Agreement, whose goal is that its economy will be more sustainable and carbon neutral, reported the EuroCham. The action plan also seeks to reduce pesticide use by 50% and increase the share of lands under organic crops to 25% by 2030.

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Let’s look at some other key financial and business headlines during the past week

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Key words: Vietnam, business, finance, economy