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Vingroup shakes up urban development firm

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The sign of the urban area Vinhomes Riverside in Sài Đồng Commune, Long Biên District, Hà Nội. — Photo cafef.vn

HÀ NỘI — Vingroup Joint Stock Company (Vingroup) has split its property arm into two in an attempt to restructure its business operation.

Vingroup decided to withdraw VNĐ500 billion worth of capital from Sài Đồng Urban Development and Investment Joint Stock Company to form a new company.

The new firm is Sado Trading Joint Stock Company and Vingroup will hold 98 per cent of the new company’s capital.

After the deal, the charter capital at Sài Đồng Urban Development and Investment JSC will be scaled down to VNĐ700 billion (US$30.2 million).

Sado Trading JSC operates in the consultancy sector, excluding activities in legal advisory, finance, accounting, auditing, taxation and securities.

Main activities include merchandise retail, brokerage and auction, stationery, advertising, eateries, trade promotion, and entertainment.

At the end of 2019, Vingroup merged Sài Đồng Urban Development and Investment JSC at a 1.1:1 ratio, meaning each of the latter’s shares was worth 1.1 Vingroup shares.

At the time of the acquisition on December 11, 2019, shares of Sài Đồng Urban Development and Investment (UPCoM: SDI) rose to VNĐ115,000 ($4.96) apiece from VNĐ90,000 apiece.

Meanwhile, Vingroup shares (HoSE: VIC) fell to VNĐ86,100 apiece from VNĐ120,000 apiece.

Vingroup has been holding 100 per cent of Sài Đồng Urban Development and Investment JSC following the merger deal.

After the deal, SDI shares were delisted from the Unlisted Public Company Market on December 26. Its shares finished the last trading day at VNĐ115,000 apiece.

Sài Đồng Urban Development and Investment JSC was founded in 2009, making investment in some of the major projects such as Vinhomes Riverside, Vinhomes Gardenia, Mai Dịch Park, Vinhomes Skylake and Cầu Giấy Park. —

Source: https://vietnamnews.vn/economy/771569/vingroup-shakes-up-urban-development-firm.html

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Vietnam fifth in global trade connectedness

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Vietnam fifth in global trade connectedness

The Tan Cang – Cai Mep International Port in Ba Ria-Vung Tau, southern Vietnam.Photo by Shutterstock/Hien Phung Thu.


Vietnam ranked fifth globally last year in terms of trade connectedness, up five places from 2017, according to a recent report by logistics giant DHL.

With a score of 83 points, Vietnam ranked behind Singapore (92), the Netherlands (92), Belgium (91) and Malaysia (84).

Most countries and territories in the top 10 saw their ranks drop or remain unchanged. Trade is one of four pillars of the DHL Global Connectedness Index 2020, the others being capital, information and people. These pillars are measured by the quantity of traded goods, the amount of international investment and the number of migrants.

The overall ranking of Vietnam in the global connectedness index was 38 among 169 countries and territories, up one place from 2017. “Vietnam has become a serious competitor to China not only in textiles manufacturing, but also increasingly in high tech products,” the report said.

Shoeib Reza Choudhury, CEO of DHL Express Vietnam, said Vietnam was one of the top destinations of companies seeking to diversify their manufacturing, drawn by the young labor force, trade pacts and social stability.

Moving to Vietnam is most popular among hi-tech forms and garment companies, he added. The DHL Global Connectedness Index is compiled every two years to measure the state of globalization in 169 countries and territories.

Source: https://e.vnexpress.net/news/business/economy/vietnam-fifth-in-global-trade-connectedness-4201922.html

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Businesses complain about new CIT payment regulation

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Under the new regulation, by the end of the third quarter, enterprises have to estimate the amounts of tax of the fourth quarter and pay the amounts.

Some of the Decree 126 provisions effective on December 5 related to the Law on Tax Administration, say that the total amount of corporate income tax (CIT) that enterprises temporarily pay in the first three quarters of the year must not be lower than 75 percent of the CIT amounts they have to pay for the whole year.

Businesses complain about new CIT payment regulation

This means that by the end of the third quarter, enterprises have to estimate the amounts of tax of the fourth quarter and pay the amounts instead of the end of the fourth quarter as previously applied.

Dang Ngoc Minh, deputy general of the General Department of Taxation (GDT), told the press on the sidelines of the dialogue between enterprises and customs and taxation agencies held some days ago, that the state budget has a shortage and the purpose of the budget collection is to get money to pay for state management operations, especially to allocate to provinces that cannot cover expenses.

In other words, the budget collection progress plays a very important role in the operations of many localities.

Asked if GDT has received complaints about the new regulation from enterprises, he said these are just a few enterprises and they don’t represent the whole business community.

The official stressed that the tax collection must be done in reference to the local budget management and the benefits of society.

This means that despite the complaints, GDT is still determined to collect tax as planned.

What will happen if enterprises are fined not because they did not pay tax, but just because they did not anticipate the sharp increase in the amount of tax they would have to pay in Q4?

In replay, GDT said it believes that this may happen but not regularly, because enterprises can foresee their business performance.

But enterprises disagreed with GDT about the uncommon number of cases that saw revenue soaring unexpectedly in Q4.

“GDT always sets estimates on state budget collections every year. Will it dare to affirm that it can collect 75 percent of the total budget collections of the whole year by the end of Q3?” a businessman said. “Will it be fined if it fails to do this?”

The businessman went on to explain that no business dares to set revenue targets quarterly, but they only dare set for the whole year.

“Everyone wants to fulfill yearly business plans, but unexpected things always occur. Businesses were preparing for the year-end sale season, when new Covid-19 infections were discovered in HCM City,” he said.

According to GDT, the Decree 126 will take place on December 5. This means that enterprises, seriously affected by Covid-19, will not be affected by the new regulation this year, because the deadline for temporary tax payment was the last day of October, or Q3.

“Who dares to say he will make profit this Tet sale season? With the regulation, it is still unclear which businesses will take a loss and which will make a profit, but all of them now have to make temporary tax payments,” he said.

When the Decree 20 dated in 2017 on the tax administration applied to enterprises with transactions with related parties facing businesses’ complaints, the Prime Minister has repeatedly requested to amend the decree. It took three years to do this.

The decree covers only 8,000 businesses, 83 percent of which are foreign invested enterprises and 17 percent Vietnamese enterprises.

Meanwhile, the number of businesses to be affected by Decree 126 is much higher and the businesses are from many different economic sectors which face difficulties.

The regulation will have a big impact on enterprises and lead to serious consequences, even if it is amended later.

The director of an enterprise warned that businesses that have been hit hard by Covid-19 will become even worse because of the new regulation on temporary tax payment.

“You don’t have money, but you still have to pay taxes in advance, based on the estimated profit you may make in the future. It is just like taxing dreams,” he commented.

Meanwhile, according to GDT, the Decree 126 will take place on December 5. This means that enterprises, seriously affected by Covid-19, will not be affected by the new regulation this year, because the deadline for temporary tax payment was the last day of October, or Q3.

So, enterprises will only have to make temporary tax payment in accordance with Decree 126 by the end of October 2021. 

Duy Anh

Source: https://vietnamnet.vn/en/feature/businesses-complain-about-new-cit-payment-regulation-694866.html

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Vietnam says Oct. CPI up 2.47 pct on year

Vietnam estimated its consumer price index for October jumped 2.47 percent from a year earlier.

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The General Statistics Office said in a report on Thursday that average inflation in the first ten months of this year rose 3.71 percent over the same period of last year.

October inflation slightly rise 0.09 percent against the previous month and December of 2019, the lowest growing rate since 2016.  

Increased prices in education sector and hike food prices due to floods in central region were the main driver of the month’s inflation.

Core inflation in October increased by 0.07 percent over the previous month and by 1.88 percent over the same period last year.

Average core inflation in the first 10 months of 2020 increased by 2.52 percent over the same period in 2019.

The government’s GDP growth target for this year is below 3 percent.

► Vietnam targets 2021 economic growth at 6 percent

Source: https://e.nhipcaudautu.vn/economy/vietnam-says-oct-cpi-up-247-pct-on-year-3337836/

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