Vietnam’s Strategic Review of Tax Policies to Strengthen Global Trade

Vietnamese Prime Minister Pham Minh Chinh has instructed a review of tax policies related to global trade. This initiative aims to adapt to changing economic conditions while achieving growth targets and stabilizing the macroeconomy. The government is enhancing trade partnerships, streamlining regulations for foreign workers, and exploring new residency policies to attract international talent. These measures address emerging global challenges and protect Vietnam’s economic interests.

Vietnamese Prime Minister Pham Minh Chinh has mandated the Ministry of Finance and other relevant agencies to conduct an in-depth review of the nation’s tax policies in relation to global trade, particularly concerning countries with strategic partnerships, such as the United States. This initiative aims to prepare Vietnam to effectively respond to global economic transformations while achieving growth targets and stabilizing the macroeconomic environment through 2025 and beyond.

The directive reflects concerns over the volatile global economy characterized by increasing strategic competition, financial risks, and new trade policies being implemented by various nations. To address these challenges, Vietnam intends to fortify its economic and trade policies. The Ministry of Foreign Affairs has been assigned to enhance diplomatic and economic ties with vital trading partners to bolster Vietnam’s standing in the global economic landscape.

The Ministry of Industry and Trade is tasked with crafting a comprehensive action plan to promote balanced and sustainable trade relations, prioritizing cooperative over competitive market interactions. This plan will also promote market diversification, boost exports, facilitate trade, and optimize benefits from existing free trade agreements, while seeking new deals with promising markets including those in the Middle East, Africa, and Latin America.

Moreover, the Ministry of Industry and Trade will intensify monitoring of trade practices to ensure fair competition, protect Vietnam’s image, and combat smuggling and tariff evasion. The Ministry of Finance is responsible for leading the tax policy review process, ensuring equity and mutual advantages in Vietnam’s tax agreements with major partners. Proposed adjustments to tax rates on specific goods must be expedited for approval.

The State Bank of Vietnam has also been tasked with formulating strategies to enhance cooperation with international financial entities, aiming to maintain Vietnam’s competitiveness within the global financial system. Additionally, the directive outlines a strategic approach towards visas, work permits, and residency reforms to support foreign investment and attract skilled labor.

Collaborating with the Ministry of Public Security and the Ministry of Home Affairs, the Ministry of Foreign Affairs will review regulations to ease the process for foreign professionals living and working in Vietnam. Initiatives include expanding visa exemptions, streamlining e-visa processes, and simplifying work permit criteria for high-priority sectors. The government is considering policies for temporary residence cards and long-term permits to attract and retain global talent.

Given the increasing apprehensions regarding potential U.S. tariff restrictions on key exports like wood products, these proactive measures aim to ensure a stable and equitable trade atmosphere while safeguarding Vietnam’s economic interests. The implementation of this directive positions Vietnam to adapt to global economic shifts, strengthen trading relationships, and foster a favorable environment for both domestic and foreign businesses.

In summary, the Vietnamese government’s directive under Prime Minister Pham Minh Chinh serves as a comprehensive approach to revamping tax policies and enhancing trade strategies in light of global economic challenges. By addressing tax equity, promoting international cooperation, and facilitating the entry of foreign professionals, Vietnam seeks to ensure robust economic growth and navigate uncertainties in global trade. These proactive measures are geared towards fortifying Vietnam’s economic resilience and enhancing its competitive edge in the global marketplace.

Original Source: tuoitrenews.vn