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Summary

22

22 BANKING & FINANCE
Bad debt transaction

market on way

A senior official from the State Bank of Vietnam (SBV)
has disclosed that the Vietnam Asset Management Com-
pany (VAMC), Vietnam’s bad debt exchange platform,
will soon receive approval from the State Bank of Viet-
nam (SBV) to shape a bad debt transaction market dur-
ing the third quarter. Financial reports for the first
quarter of this year reveal that many banks have rising
bad debts, including the ACB, which saw such debts in-
crease 61 per cent to VND2.954 trillion. Several others
are holding high levels of bad debts, including VPB, with
VND10.42 trillion, VietinBank with VND8.95 trillion,
Vietcombank with VND7.69 trillion, and MB with
VND4.18 trillion.

36 TRADE

FINANCE MINISTRY’S CIRCULAR
NO. 40 SPARKS CONTROVERSY
16 COVER STORIES
Vietnam’s industry sector The Ministry of Finance issued Circular No. 40/2021/TT-
BTC on June 1, providing guidelines on value added tax
recovers in first half (VAT), personal income tax (PIT), and tax administration
for business households and individuals. Immediately fol-
lowing its issuance, Circular No. 40 caused a degree of con-
Processing and manufacturing take the lea troversy, especially among e-commerce platform owners
required to provide information relating to business ac-
The General Statistics Office (GSO) released a report tivities conducted by households and individuals at the re-
showing that industry in Vietnam generally recovered in quest of tax authorities and in accordance with applicable
the first half of the year, posting growth of 8.91 per cent, laws. Notably, under the Cỉrcular, leased properties, in-
in which the processing and manufacturing sector took cluding leased houses (except for accommodation serv-
the lead with 11.42 percent growth, up 5.06 per cent over ices), land, stores, factories, and warehouses, means of
the same period last year. The first half also saw the ap- transport, machinery and equipment without drivers, and
proval of new FDI projects in industry, with registered property without services shall be subject to a tax rate of
capital of $3.1 billion, accounting for 32.4 per cent of all 10 per cent at most (including a VAT rate of 5 per cent and
newly-registered capital. Including additional capital to a PIT rate of 5 per cent). In addition, business households
existing projects, capital reached $6.49 billion. The figures and individuals with revenue from production and busi-
reveal that processing and manufacturing remains attrac- ness activities in a single calendar year of VND100 million
tive among foreign investors. Growth in the sector during or less will be exempted from paying VAT and not be re-
the first half is encouraging but still largely dependent quired to pay PIT as prescribed by laws on the two taxes.
upon FDI, making it unsustainable. The Ministry of Plan- Business households and individuals must make accurate,
ning and Investment (MPI) issued Decision No. 701/QD- truthful, and complete tax declarations and submit tax re-
BKHDT in June to facilitate business and production by turns on time.
companies, individuals, and foreign investors.

4 Kinh tế Việt nam Số 52 ngày 5/7/2021 www.vneconomy.vn