KPMG institute events in full swing

At last week's event Warrick Cleine, chairman and CEO of KPMG in Vietnam and Cambodia, highlighted the increasing globalisation and the world's and Vietnam's dominant economic trends over the past three decades.

“Vietnam and the world have witnessed a globalisation super cycle, evident in technological advancements, trade liberalisation, and the rise of emerging economies. This period has brought significant benefits to many countries, such as economic growth, reduced prices for goods and services, and access to new markets,” said Cleine.

Warrick Cleine spoke at the event. Photo: KPMG

Cleine added that the global landscape has been marked by several significant events, including the US withdrawal from the Trans-Pacific Partnership, the imposition of tariffs on Chinese products, the the UK's exit from the European Union.

“These events underscore escalating trade tensions and geopolitical rivalries, placing immense pressure on global enterprises,” he added.

However, amidst this backdrop, Vietnam's recent growth trajectory has remained partially unclear.

“In the context of Vietnam's expected large investment inflows and its promising destination, I believe the Vietnamese government will take new, practical, and open-minded steps with businesses in the new era,” he said.

Cleine analysed that although having a vibrant industrial and export sector, Vietnam had had a weak consumer market and property sector and, to some extent, the banking sector as well. However, he believes that the above issues will continue to improve as the financial year of 2025 approaches.

Through the forum, KPMG in Vietnam believes that the business community has had many questions about tax, trade, and customs resolved, and many now better understood the mindset of policymakers and the government's orientation through new policies that have been passed, or will be in the near future.

In addition to experts from KPMG, the forum also featured lawmakers, senior experts in tax and law, and many business leaders. It served as a platform for updating tax and legal matters and a place for business leaders to network and express their shared concerns through direct dialogues with representatives from tax authorities and experts.

Also at the event, deputy general director of the General Department of Taxation (GDT) Dang Ngoc Minh discussed the Law on Tax Management, considered a key to comprehensively regulating tax and addressing shortcomings in previous legislation.

In response to a query regarding the formulation of regulations concerning the global minimum tax (GMT) and specific guidelines for businesses, Minh disclosed that the Ministry of Finance had designated the GDT as the primary entity tasked with drafting a decree providing detailed provisions.

One of the important contents being discussed in the National Assembly is VAT, special consumption tax, and corporate income tax.

"The VAT tax has been implemented since 2006 and has improved the competitiveness of Vietnamese goods in the international market, achieving an export figure of over $300 billion this year, making Vietnam's total import-export turnover reaching a record number of approximately $800 billion so far," Minh explained.

Minh also released that by receiving comments from foreign businesses, the National Assembly decided to continue applying the special zero VAT regime for non-tariff zones.

The GDT has convened a Drafting Committee, with the direct involvement of Minh, representatives from various departments and units department, and representatives from the big four accounting firms, including KPMG in Vietnam.

“After consulting with experts from the Organisation for Economic Co-operation and Development (OECD) and numerous review sessions to develop the content of the decree, the GDT found some difficulties for businesses in Vietnam if they fall within the scope of application due to some OECD regulations being quite unprecedented for Vietnam,” Minh said.

Photo: KPMG

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