Vietnam’s Prime Minister Pham Minh Chinh has ordered a comprehensive review of tax policies to enhance global trade strategy in response to shifting economic dynamics. Key ministries are tasked with improving trade partnerships, promoting balanced trade, and simplifying foreign investment processes to strengthen Vietnam’s global economic position amid increasing competition and unpredictability.
Vietnamese Prime Minister Pham Minh Chinh has mandated the Ministry of Finance to collaborate with pertinent agencies on a thorough evaluation of the nation’s tax policies, particularly in relations with countries that maintain strategic partnerships, including the United States. This directive outlines critical tasks designed to help Vietnam effectively respond to shifting global and regional economic landscapes, while ensuring growth targets, macroeconomic stability, inflation control, and maintenance of major economic balances moving forward to 2025 and beyond.
Acknowledging the increasing volatility of the global economy, the document addresses heightened strategic competition and new risks in financial and real estate sectors, as well as the emergence of various new trade and tariff regulations. In light of these challenges, Vietnam seeks to reinforce its economic and trade policies to effectively navigate and mitigate such issues.
The Ministry of Foreign Affairs is charged with enhancing diplomatic and economic ties, focusing on key trading partners to fortify Vietnam’s standing in the global economic arena. Concurrently, the Ministry of Industry and Trade is tasked with rapidly finalizing a strategic action plan aimed at achieving balanced and sustainable trade, emphasizing complementary relations over direct competition.
Key features of this plan include diversifying market access, boosting exports, facilitating trade processes, as well as maximizing the advantages of existing free trade agreements. Furthermore, the ministry aims to pursue new agreements with promising markets in areas such as the Middle East, Africa, Latin America, Central Asia, India, and Brazil.
Additionally, the Ministry of Industry and Trade is to enhance monitoring of trade practices to prevent unfair competition and uphold Vietnam’s reputation globally. Strategies will be employed to improve oversight on product origins, combat smuggling, and mitigate concerns regarding tariff evasion, particularly in relation to foreign investment.
The tax policy review, spearheaded by the Ministry of Finance, will emphasize equity, balance, and mutual benefits in tax dealings with major economic partners. The prime minister has insisted on timely adjustments of tax rates for specific goods, requiring proposals to be developed and submitted for approval within a month.
Monetary policy changes are also outlined in this directive. The State Bank of Vietnam is directed to devise new strategies for enhanced cooperation with international financial entities to maintain Vietnam’s competitive edge within the global financial system.
Beyond trade and monetary policies, the directive encompasses modifications to visa, work permit, and residency procedures for foreign investors and highly skilled workers. The Ministry of Foreign Affairs, alongside the Ministry of Public Security and the Ministry of Home Affairs, will review regulations to simplify processes, including expanding visa exemptions, streamlining e-visa applications, and easing work permit requirements for priority sectors.
The government is additionally exploring initiatives for issuing temporary residency cards and long-term permits to attract and retain foreign talent. This directive arrives amid rising concerns regarding potential tariff barriers, particularly from the U.S. concerning significant exports such as wood products. The proactive measures proposed aim to foster a fair and stable trading environment while safeguarding Vietnam’s economic interests. Through these initiatives, Vietnam is strategically positioning itself for adaptation to global economic changes, enhancement of trade partnerships, and facilitation of a favorable business climate for both domestic and foreign enterprises.
The directive issued by Vietnamese Prime Minister Pham Minh Chinh emphasizes a comprehensive review of tax policies and enhancements in trade strategies, ensuring that Vietnam adapts effectively to the complexities of the global economy. Through these urgently instituted measures in taxation, financial strategies, and foreign investment procedures, Vietnam aims to strengthen its economic stability and international trade relations, ultimately creating a more accommodating environment for both domestic and foreign entities.
Original Source: tuoitrenews.vn
