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Opportunities and challenges for Vietnam in attracting FDI

According to experts, Vietnam will welcome a new wave of investment after the pandemic if Vietnam can compete with other attractive destinations.To do this, complete the legal framework, create investment conditions. Facilitation, equality, transparency, and opportunity for dialogue for investors are extremely important.

According to the Covid-19 Economic Impact Assessment Report released by the Asian Development Bank in May 2020, as a result of a pandemic, the global economy could suffer losses of 5, 8 trillion to 8.8 trillion US dollars, equivalent to 6.4% to 9.7% of global GDP.

However, from this pandemic many countries and large economic groups have drawn valuable lessons learned as the need to diversify sources of supply, avoiding dependence on an economy or a country. to reduce risks to the supply chain. This is a rare golden opportunity for developing economies like Vietnam. Vietnam's success in controlling the Covid-19 pandemic and its active economic recovery policies are attracting the attention of many foreign investors and major global economic groups. In order to attract investment capital, to welcome a new wave of movement, on June 17, Prime Minister Nguyen Xuan Phuc issued Decision No. 850 / QD-Ttg establishing a working group to promote investment cooperation. foreign.

On the side of FDI enterprises, there are also many positive moves. On June 19, the US Trade Association in Vietnam cooperated with the Danang Investment Promotion and Promotion Board to hold the US-Danang Trade and Investment Connection Workshop to present exchanging information and opportunities for investment and trade cooperation between US businesses and Da Nang city in many fields such as high technology, information technology, transportation, tourism, healthcare and trade. trade, human resource development ...

Overcoming challenges, anticipating FDI wave

To be able to take advantage of the "rare and hard-to-find" opportunities now, Vietnam needs to overcome challenges that are directly affecting the investment environment such as policy instability and legal regulations. clearly and without transparency, causing difficulties for investors in the implementation process; infrastructure for logistic activities has not been developed synchronously; Human resources with high professional qualifications are still limited, etc. In order to do this, the regulatory agencies need to have dialogues and close coordination with the business community to review and review inappropriate regulations. consistent with international practice or practice, perfecting the legal framework, creating favorable, fair and transparent investment conditions for investors.

At the Vietnam Annual Business Forum 2019, Mr. Takahisa Onose, Representative of the Tax & Customs Working Group, shared his views on a prominent issue that every business cares about - principles in the field. tax and accounting. According to Mr. Takahisa, Vietnam needs to create confidence for investors that in the face of challenges and opportunities from innovative and complex business and transaction models, the Vietnamese tax authorities will have fair and reasonable policy mechanisms on the basis of respect for core principles. Applying core tax principles to issues such as reasonable cost deduction, revenue recognition, purchase and sale pricing for transactions involving jurisdictions with other tax rates, etc. will help strengthen trying to believe that tax authorities have been actively acquiring and improving

In addition, representatives of the tax and customs working group at the forum also emphasized the need for a mechanism to resolve conflicts in interpretation and law enforcement as well as in the inspection process. corporate inspection: "The right to an independent complaint not through the court system for tax decisions or conclusions is a basic principle that exists in nearly all jurisdictions and Vietnam. there should also be this provision, and strict sanctions should only be applied such as blockade of bank accounts after all reasonable corrective actions have been taken and the complaint process has ended. " .

In fact, businesses in Vietnam have almost no opportunity to appeal tax inspection decisions or conclusions before tax authorities apply enforcement measures such as account blockade or invalidation of invoices. added value. Therefore, the right to appeal and resolve complaints with the participation of independent professional bodies and opportunities for dialogue and explanation with the authorities at all levels should be considered as rights. legitimate interests of businesses, helping to strengthen the confidence of businesses and investors in a healthy, transparent investment environment.

Also at this forum, Ms. Amanda Rasmussen, President of AmCham, said that building a fair, transparent, stable and effective legal framework that attaches importance to innovation will help Vietnam continue to attract, maintain and develop high quality trade and investment, including and through AmCham member businesses. She also affirmed, "We are committed to working with the Vietnamese government to develop the legal environment, infrastructure, and talent to build innovation and sustainable economic growth, and ensuring that Vietnam is a leader in the digital economy and the Industrial Revolution 4.0 ".


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