Latest news with #VietnamChamberofCommerceandIndustry
Fibre2Fashion
29-05-2025
- Business
- Fibre2Fashion
Vietnam urged not to exempt cross-border e-com goods from import tax
The Vietnam Chamber of Commerce and Industry (VCCI) recently requested the Ministry of Finance for clearer regulations on import tax for e-commerce goods. The request followed the release of the draft government decree related to customs management of e-commerce imports and exports. Evaluating the regulation on import tax exemption for orders with a value of 1 million VND (~$40) or less, VCCI said that this mechanism was not suitable as it would create inequality with indigenously-produced goods. The Vietnam Chamber of Commerce and Industry (VCCI) has urged the Finance Ministry for clearer rules on import tax for e-commerce goods. The request followed the release of the draft government decree related to customs management of e-commerce imports and exports. VCCI believes a comprehensive import tax policy should be drafted, without exemptions or reductions for imported e-commerce goods. As the value of each e-commerce order is often low, mostly not exceeding 1 million VND, the regulation on the tax exemption threshold of 1 million VND means most imported e-commerce goods will not be subject to import tax. Second, domestic manufacturing enterprises must pay import tax on input materials, while imported e-commerce goods are completely exempted. This creates inequality in tax policy, giving foreign goods a competitive advantage, a domestic media outlet reported citing the VCCI letter to the ministry. VCCI believes a comprehensive import tax policy should be drafted, without exemptions or reductions for imported e-commerce goods. However, the development of import tax policies for e-commerce goods will face many challenges, including the difficulty in applying HS code regulations as for traditionally imported goods for e-commerce goods. The diversity of goods via e-commerce can lead to large-scale difficulties in accurately determining HS codes, delaying customs clearance and delivery, and even leading to order cancellations, causing damage to both sellers and e-commerce platforms. Fibre2Fashion News Desk (DS)
The Star
27-05-2025
- Business
- The Star
Proposal to not exempt tax on cross-border e-commerce goods in Vietnam
VCCI believes that the drafting agency should consider applying a comprehensive import tax policy, without exemptions or reductions for imported e-commerce goods. - Photo: HANOI: The Vietnam Chamber of Commerce and Industry (VCCI) has called for clearer regulations on import tax for goods traded via e-commerce. In a recent move, the VCCI submitted its comments on the draft decree concerning customs management of e-commerce imports and exports to the Ministry of Finance (MoF). Evaluating the regulation on import tax exemption for orders with a value of VNĐ1 million (US$40) or less, VCCI said that this mechanism was not really suitable, creating inequality with domestically-produced goods. First, the value of each e-commerce order is often low, mostly not exceeding VNĐ1 million. For example, more than 324.1 million imported products were sold through Shopee last year, generating revenue of VNĐ14.2 trillion, or an average value of only about VNĐ43,682 per product. Thus, the regulation on the tax exemption threshold of VNĐ1 million means that most imported e-commerce goods will not be subject to import tax. Second, domestic manufacturing enterprises must pay import tax on input materials, while imported e-commerce goods are completely exempted. This creates inequality in tax policy, giving foreign goods a competitive advantage. The VCCI believes that the drafting agency should consider applying a comprehensive import tax policy, without exemptions or reductions for imported e-commerce goods. However, the development of import tax policies for e-commerce goods will face many challenges, including the difficulty in applying HS code regulations as for traditionally imported goods for e-commerce goods. The diversity of goods via e-commerce can lead to large-scale difficulties in accurately determining HS codes, delaying customs clearance and delivery, and even leading to order cancellations, causing damage to both sellers and e-commerce platforms. The tax exemption threshold of VNĐ1 million was essentially based on the principle that the administrative costs for low-value goods could far exceed the amount of tax collected, emphasised VCCI. To solve this problem, international experience showed that it was necessary to simplify the tax schedule for e-commerce goods. For example, HS codes (codes for classifying goods in import and export) can be grouped into a number of 'goods baskets' according to industry groups or uses. Each 'basket' corresponds to a specific tax rate. For example, basket one includes clothing, footwear, textiles, bedding; basket two includes electronic devices such as computers, phones, headphones. In this way, businesses can easily classify goods instead of having to determine specific HS codes for each individual product. Canada has applied this form since 2012, using three groups of goods to replace nearly 5,400 HS codes. Therefore, VCCI recommended that the drafting agency consider amending the regulations on import tax on goods via e-commerce in the direction of building a simplified tax rate schedule and applying it to all orders, regardless of value. - Vietnam News/ANN
Business Times
22-04-2025
- Business
- Business Times
Trade talks with US should not hurt other markets, says Vietnam's PM
[HANOI] Vietnam's prime minister has ordered his negotiation team to 'thoroughly prepare' for tariff talks with the US, while avoiding any impact elsewhere, as the nation seeks to make swift progress in averting one of the largest US tariffs. The negotiations should ensure consistency with Vietnam's existing international commitments, and 'prevent negative impacts on other markets', a government portal cited Pham Minh Chinh as saying in a meeting in Hanoi on Tuesday (Apr 22). Chinh on Friday hailed the nation's 'unique bond' with the US, just days after hosting China's President Xi Jinping, during which 45 deals were signed to deepen economic ties. Vietnam's leaders had a muted response to Xi's call to jointly oppose 'unilateral bullying' in a subtle jab at the US, underscoring Hanoi's careful diplomatic dance between the two powers. Vietnam was among the first countries singled out by US President Donald Trump for showing willingness to negotiate over the tariffs. The two countries announced talks hours after Trump declared a 90-day pause on higher tariffs, which he has temporarily pared back to 10 per cent. Vietnam was facing a 46 per cent duty on products shipped to its biggest export market. Vietnam has repeatedly vowed to purchase more American goods and has taken steps such as tightening measures targeting origin of goods fraud. The move is widely seen as addressing one of the Trump team's key concerns: Chinese goods being shipped to the US via Vietnam to sidestep tariffs. In the latest push, the trade ministry revoked the right for any other organisation to issue certificates of product origin, in an effort to show it is further stepping up the fraud crackdown, news website Tien Phong reported. The prime minister reiterated that Vietnamese goods do not compete with those of the US and that 'bilateral trade relations so far have ultimately benefited US consumers while driving Vietnam's export growth'. Vietnam stands ready to have talks based on US suggestions, Chinh added. Underscoring the government's push, Vietnam Chamber of Commerce and Industry sent letters to the US Department of Commerce, the US Chamber of Commerce, the US-Asean Business Council and others to seek support in asking the US to delay the imposition of tariffs on Vietnam, according to a post on the chamber's website on Tuesday. BLOOMBERG
Straits Times
22-04-2025
- Business
- Straits Times
Vietnam PM says US trade talks should not hurt other markets
Vietnam was among the first countries singled out by US President Donald Trump for showing willingness to negotiate over the tariffs. PHOTO: AFP Vietnam PM says US trade talks should not hurt other markets HANOI – Vietnam's prime minister has ordered his negotiation team to 'thoroughly prepare' for tariff talks with the United States, while avoiding any impact elsewhere, as the nation seeks to make swift progress in averting one of the largest US tariffs. The negotiations should ensure consistency with Vietnam's existing international commitments, and 'prevent negative impacts on other markets', Prime Minister Pham Minh Chinh said in a meeting in Hanoi on April 22. On April 18, Mr Chinh hailed the country's 'unique bond' with the US, just days after hosting Chinese President Xi Jinping, during which 45 deals were signed to deepen economic ties. Vietnam's leaders had a muted response to Mr Xi's call to jointly oppose 'unilateral bullying' in a subtle jab at the US, underscoring Hanoi's careful diplomatic dance between the two powers. Vietnam was among the first countries singled out by US President Donald Trump for showing willingness to negotiate over the tariffs. The two countries announced talks hours after Mr Trump declared a 90-day pause on higher tariffs, which he has temporarily pared back to 10 per cent. Vietnam was facing a 46 per cent duty on products shipped to its biggest export market. The South-east Asian nation has repeatedly vowed to purchase more American goods and has taken steps such as tightening measures targeting origin of goods fraud. The move is widely seen as addressing one of the Trump team's key concerns: Chinese goods being shipped to the US via Vietnam to sidestep tariffs. In the latest push, the trade ministry revoked the right for any other organisation to issue certificates of product origin, in an effort to show that it is further stepping up the fraud crackdown, news website Tien Phong reported. The prime minister reiterated that Vietnamese goods do not compete with those of the US and that 'bilateral trade relations so far have ultimately benefited US consumers while driving Vietnam's export growth'. Vietnam stands ready to have talks based on US suggestions, Mr Chinh added. Underscoring the government's push, Vietnam Chamber of Commerce and Industry sent letters to the US Department of Commerce, US Chamber of Commerce, US-Asean Business Council, and others to seek support in asking the US to delay the imposition of tariffs on Vietnam, according to a post on the chamber's website on April 22. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
22-04-2025
- Business
- Business Times
Vietnam PM urges US trade talks should not hurt other markets
[HANOI] Vietnam's prime minister has ordered his negotiation team to 'thoroughly prepare' for tariff talks with the US, while avoiding any impact elsewhere, as the nation seeks to make swift progress in averting one of the largest US tariffs. The negotiations should ensure consistency with Vietnam's existing international commitments, and 'prevent negative impacts on other markets,' the post cited Pham Minh Chinh in a meeting in Hanoi on Tuesday (Apr 22). Chinh on Friday hailed the nation's 'unique bond' with the US, just days after hosting China's President Xi Jinping, during which 45 deals were signed to deepen economic ties. Vietnam's leaders had a muted response to Xi's call to jointly oppose 'unilateral bullying' in a subtle jab at the US, underscoring Hanoi's careful diplomatic dance between the two powers. Vietnam was among the first countries singled out by Donald Trump for showing willingness to negotiate over the tariffs. The two countries announced talks hours after Trump declared a 90-day pause on higher tariffs, which he has temporarily pared back to 10 per cent. Vietnam was facing a 46 per cent duty on products shipped to its biggest export market. The South-east Asian nation has repeatedly vowed to purchase more American goods and has taken steps such as tightening measures targeting origin of goods fraud. The move is widely seen as addressing one of the Trump team's key concerns: Chinese goods being shipped to the US via Vietnam to sidestep tariffs. In the latest push, the trade ministry revoked the right for any other organisation to issue certificates of product origin, in an effort to show it's further stepping up the fraud crackdown, news website Tien Phong reported. The prime minister reiterated that Vietnamese goods do not compete with those of the US and that 'bilateral trade relations so far have ultimately benefited US consumers while driving Vietnam's export growth.' Vietnam stands ready to have talks based on US suggestions, Chinh added. Underscoring the government's push, Vietnam Chamber of Commerce and Industry sent letters to the US Department of Commerce, US Chamber of Commerce, US-Asean Business Council and others to seek support in asking the US to delay the imposition of tariffs on Vietnam, according to a post on the chamber's website on Tuesday. BLOOMBERG
