Market Leader Research Report

News 1: Finance Ministry proposes environmental tax hikeThe Ministry of Finance has proposed raising environmental protection taxes on oil and petroleum products from the current VNĐ3,00

News 1: Finance Ministry proposes environmental tax hike

The Ministry of Finance has proposed raising environmental protection taxes on oil and petroleum products from the current VNĐ3,000 (13 US cents) to the ceiling level of VNĐ4,000 (17 cents) per litre beginning July 1, 2018

Accordingly, environmental protection taxes have been proposed to increase by VNĐ500 per liter of diesel oil to VNĐ2,000 and by VNĐ1,100 per liter of other oil products to VNĐ2,000

Plastic bags are also expected to see higher environmental taxes, rising from the current

VNĐ30,000 to VNĐ50,000 per kilo, if the draft is approved

Last year, the ministry sought opinions about a draft law on the environmental protection tax hike to the highest level of VNĐ8,000 per litre The proposal faced fierce opposition from both the public and economists

In 2014, a similar hike was imposed, raising the taxes from VNĐ1,000 to VNĐ3,000, which the ministry referred to as a good way to stabilise the State budget

The ministry said that the tax hike was necessary because import taxes on oil and petroleum products are declining sharply

It added that petroleum is used in products containing chemicals, causing negative effects upon the environment, even when not in use The current import tax on petroleum products is 20 per cent, and 7 per cent on oil products, and the respective rates will be slashed to 10 per cent and zero per cent as part of Việt Nam’s tax cut commitments

With the tax cut, revenues from petrol imports have been continuously decreasing in the past few years, as importers were keen on markets with more preferential tariffs In addition, retail prices

of oil and petroleum products in Việt Nam are now lower than those in neighbouring countries, and other Southeast Asian nations, the ministry noted

According to the ranking of the Global Petrol Prices on November 27, 2017, Việt Nam’s petrol retail selling price took 45th position among 167 countries and territories

“The environmental protection tax increase is suitable to the regulations under the Law on Environmental Protection Tax,” it said, adding that the hike would have effects on selling prices

of other products However, it would encourage savings of energies and natural resources, as well as consumption of environmentally friendly products, such as E5 bio-fuel This could help Việt Nam reduce emissions, contributing to implementation of its international commitments on environmental protection

The MoF calculated that the country could collect some VNĐ57.3 trillion per year from the taxes, increasing by VNĐ15.6 trillion from the current level

In addition to the environmental protection taxes, collections from higher value added taxes would add an additional VNĐ1.56 trillion The total collection to the State budget could rise by VNĐ17.2 trillion per year

In January, Việt Nam imported 900,000 tonnes of various kinds of oil and petroleum products, totaling $552 million, marking respective rises of 3.5 per cent and 10.8 per cent, according to the General Statistics Office

The current law on environmental protection taxes, issued in 2012, stipulates that products such

as oil, gas, grease, coal, and plastic bags are subject to these types of taxes — VNS

Link: http://vietnamnews.vn/economy/423290/finance-ministry-proposes-environmental-tax-hike.html#U8CCkF2iC3bykJ2g.97

SUMMARY:

The Ministry of Finance has proposed raising environmental protection taxes on oil and

petroleum products due to the impact of them on the environment Oil and petrolium will raise from the current VNĐ 3,000 (13 US cents) to the ceiling level of VNĐ 4,000 (17 cents) per litre Environmental protection taxes have been proposed to increase by VNĐ500 per liter of diesel oil

to VNĐ2,000 and by VNĐ1,100 per liter of other oil products to VNĐ2,000 Plastic bags are also expected to see higher environmental taxes, rising from the current VNĐ30,000 to

VNĐ50,000 per kilo With the tax cut, revenues from petrol imports have been continuously decreasing in the past few years, as importers were keen on markets with more preferential tariffs In addition, retail prices of oil and petroleum products in Việt Nam are now lower than those in neighbouring countries, and other Southeast Asian nations

REVIEW:

The Ministry of Finance raised the environmental protection tax rate to 4,000 VND / liter, equivalent to 25% of the price of 1 liter of oil is 16,000 VND, is too high and too heavy

According to the Ministry of Finance, if the proposal is approved, the budget will increase more than 15,500 billion VND / year Obviously the interests of the people have not been considered

In particular, petrol prices carry too many taxes and fees One liter of gasoline sold on the market

is subject to environmental protection tax, value added tax 10%, excise tax, import tax on

weighted average 9% Total tax of about 7,000 VND / liter of gasoline

Meanwhile, petroleum is an essential commodity, an input of the economy If the tax increase, certainly the domestic petrol price will increase, the input costs of production and business activities will affect while the competitiveness of enterprises is limited, not to mention the cost of living of people will be affected in the context of low living standards

News 2: Southern province licenses 8 new projects

The People’s Committee of southern Bà Rịa –Vũng Tàu Province on Friday licensed eight new investment projects worth over VNĐ8.3 trillion (US$364 million)

These projects are related to solar energy, housing and hospital construction development, steel, ceramics and tourism

In his speech at the licensing ceremony, Nguyễn Hồng Lĩnh, Secretary of the provincial Party Committee, said the province appreciated each project and the work proves the great efforts made to attract investment

However, the locality is determined to revoke the licences of slow-moving projects and transfer them to investors with sufficient financial capacity

Meanwhile, chairman of the provincial People’s Committee, Nguyễn Văn Trường, said the province will attract investors selectively, with a focus on large projects, modern technology, high value-addition in the fields of industry, ports, port services and logistics, tourism, and high-tech agriculture

In 2017, the province granted licences to 69 new projects Of those, 29 were foreign-invested with total registered capital of $1.5 billion and the remainder, worth over VNĐ29 trillion ($1.27 billion), were funded by domestic investors

From now until 2020, the province hopes to attract $4 billion worth of foreign direct investment

in 80 projects, VNĐ100 trillion worth of domestic investment in 90 projects and VNĐ15 trillion

in 15 public-private partnership projects — VNS

Link:

http://vietnamnews.vn/economy/423319/southern-province-licenses-8-new-projects.html#7JprF4c2CwMVj7lh.99

Mr Nguyen Van Trinh, Chairman of Ba Ria-Vung Tau People's Committee has granted 8 certificates of investment registration with total registered capital of 311 million USD and 3.588 billion VND for investors, including 4 investment projects 4 foreign investment projects Ba Ria

- Vung Tau will focus on developing five economic pillars: industry, seaport, port logistics, tourism and high technology agriculture In addition, it will accelerate the processing and

recovery of slow-deploying projects, creating more space for new investors to develop

REVIEW:

In my opinions, I think that we should appreciate every capital invested by businesses and investors, this is a measure of trust in the province's efforts to attract investment and will create conditions to maximize the effectiveness of capital Which is the right direction and goal of the province, bringing the highest benefits to businesses and communities I Expect these projects will soon deploy and put into operation, business