VietNamNet Bridge – A large number of new policies and regulations influencing the entire socio-economic life will become effective in January, 2014.

Supreme law of Viet Nam

With 11 chapters and 120 articles (one chapter and 27 articles fewer than the previous version), the amended Constitution comes into force on January 1, 2014.

The document inherits and develops the basic principles and contents of the 1992 Constitution such as the State organization model, the socialist-oriented market economy, as well as land reclamation in favor of socio-economic development.

However, the new Constitution also consists of new contents. Accordingly, the Party closely connects with the people, serves the people, works under the supervision of the people and is responsible for the people on its decisions.

Higher minimum wage

Since January 1, 2014, the monthly minimum wage for employees increases to between VND 1.9 million (US$ 89.3) and VND 2.7 million (US$ 128).

Under the four region-based minimum wage levels, the minimum wage is VND 2.7 million (US$ 128) in Region I; VND 2.4 million (US4 114) in Region II; VND 2.1 million (US$ 100) in Region III, and VND1.9 million (US$ 90) in Region IV.

Accordingly, the new minimum wage is higher than the previous rates of VND 250,000-350,000 (US$11.8-16.5).

Lower car import tax

Vehicles imported from nine other ASEAN countries to Viet Nam will incur a tax cut of 50% of the car’s value instead of the current level of 60% following the ASEAN Trade in Goods Agreement (ATIGA).

Specifically, the tax rate for emergency cars and prisoner transport vehicles will range from 0 to 5%.

Aircraft tax, which applies to airplanes and helicopters, will decrease to 0% starting from early 2014.

Fewer tariff on gold import

Under Circular 164/2013 of the Ministry of Finance, export tax of jewelry products will be 0%.

Meanwhile, export tax on material gold will be imposed 2%.

Preferential corporate tax

According to Decree 154 of the Government guiding the management of concentrated information technology parks, enterprises will enjoy corporate tax rate of 10% for 15 years (up to 30 years in special cases) and exempt from tax in 04 years and get 50% tax cut in the next five years.  

In addition, they will be exempted from import tariff for goods imported to create fixed assets and serve for production of information technology products and services of enterprises.

Under Decree 154, concentrated information technology parks must employ at least 2,000 laborers doing specialized jobs in information technology, occupying at least 60% of total laborers working in the IT Park.

In addition, six laws will come into force, including the revised Law on Residence, the amended Law on Value-added Tax and Corporate Income Tax, the Law on Mediation at the Grassroots Level, the Law on Science and Technology, and the Law on National Defense and Security Education.

Source: VGP