The biggest issue as a small business owner in Vietnam is the two tiered tax system - ie: a family run business does not register for, nor pays, tax. Most of my suppliers are small local businesses that do not issue red stamped tax invoices. This has held back the growth of my business, as i can not make legal payments to these small vendors with my business accoutns without the tax office requiring more information. Very frustrating.
Goodday Ken, More work for you by the sounds of it. Wishing you, your family, all your co-workers all Happy & Prosperous 2024. Still recovering from other night. Take care buddy Cheers Louis Kats your number 1 Fan in Melbourne, Australia 🇦🇺 🇻🇳
I'm often considering doing business in Vietnam as a solo-preneur in the cybersecurity field but stuff like this keeps me out of it. I was involved in a venture in VN back in 2005 (my first experience in VN) but not as the owner. That was not successful. So I am constantly intrigued but very hesitant to jump in.
Hi tracy I've could see your messages soun interesting me and best friend go to viernam in march to create our own bussines about Cybersecuritye let me a contact I would like to speak more about this
Ken, I was wondering: I know that technically one is a resident and can be approached for taxes if one stays in Vietnam for more than 182 days a year, but is this really enforced? In other words, what is the likelyhood of the govt coming after me for tax if I stay in Da Nang for say 9 months a year and go elsewhere for 3 months each year? I'm talking about being a perpetual tourist, bouncing to acquire each new e-visa, but staying beyond the 6 month period each year? What are your thoughts? Thanks for your informative videos (I subscribe)...
Vietnam’s Law on Personal Income Tax recognizes ten different categories of income, with a host of different deductions, tax rates, and exceptions applying to each of them. A tax resident is defined as someone residing in Vietnam for 183 days or more in either the calendar year or a period of 12 consecutive months from the date of arrival. Tax residents are subject to PIT on their worldwide employment income, regardless of where the income is paid or earned, at progressive rates from five percent (5%) to a maximum of thirty five percent (35%). Non-resident taxpayers are subject to PIT at a flat rate of twenty percent (20%) on their Vietnam-sourced income.
The reason l employ an accountant is to figure out the confusion. As an incentive we provide free childcare and free dental care to all employees who pay deductables without an argument.
I can see the arguments from both sides, but I find the timing questionable. With so many corporations leaving China and wanting to move their manufacturing elsewhere, Vietnam is always mentioned as one of the top 3 countries that companies are looking to move to. As a developing economic country, I would think Vietnam would want to do everything it could to stand to be as "inviting" as possible. The creation of more jobs, and cash flow through the country's economy seems like it would be a win.
I noticed that in Thailand there are many mom-and-pop cooking venders and such all around, is there something similar in Vietnam? I don't see that watching your videos?
I won't change a dime for multinationals which are going away from China and want cheaper labor. The standard corporate tax is already 20% so it will affect only a few companies.
Why I will stay on short term visas. Long term visas are a license to tax better to live and work through foreign partners in 3 or 4 countries. Makes Dubai more attractive. Removing tax incentives is stupid.
136 countries have signed an agreement at a OECD summit in 2021 that includes Vietnam and set in motion in 2023. There are pros and cons. It benefits more for developed countries than developing/emerging economies. As for Vietnam, the VAT will be reduced by 2% on Jan2024. MNCs is still waiting for additional incentives like free land or utilities subsidies for future expansion as I believe Vietnam is the next manufacturing hub ex China for Taiwan/Japan/Korea
Regarding Vietnam's VAT, it will NOT BE REDUCED by 2%, it has been a temporary cut from 10% to 8%. The cut is just remaining in force to July 1st. Telecommunications, finance-banking, securities, insurance, real estate, metal and metal products, and mining (excluding coal) will not get the tax cut. Lowering VAT by 2 percentage points is a repeat of a policy adopted last year to support economic recovery post-pandemic.
As an American who spent 40 years working as a corporate slave and moved to Vietnam to escape the abuse and exp;oitation, I could not be happier that these greedy a-holes are being taxed to do business in Vietnam.
This is not just a “trend” but mandatory requirements imposed by the Western markets on various tax havens and investment destinations. Even Hong Kong recently has been compelled to agree to implement a global minimum tax rate
YOU CANNOT BUY LAND IN VIETNAM. FOREIGNERS CAN PURCHASE A USER CERTIFICATE, SOMETHING A IN TO A LONG TERM LEASE, WHICH LASTS FOR SO MANY YEARS AT WHICH TIME IT IS DISSOLVED. HOWEVER, VIETNAMESE CAN GET A PERTETUAL USER CERTIFICATE. BE IT RESIDENTIAL HOUSING, CONDOMINIUM, MUD, THE OWNERSHIP OF REAL BUILDINGS ALL CEASE AFTER 70 ODD YEARS. THE OTHER PROBLEM IS FINDING OUT WHO HOLDS THE PRESENT USER CERTIFICATE. THE ISLAND OF PHU QUOC (OFF THE SOUTH COAST) WHERE RICH COMPANIES WHO DID CHECKS ARE LOSING THERE INVESTMENTS TO BULL DOZERS WHEN SENIOR GOVERNMENTS DO DEEP INVESTIGATIONS AND DISCOVER A GREAT DEAL OF LAND IS DESIGNATED AS FOREST OR PARKLAND. I LIVE IN VIETNAM MARRIED TO A VIETNAMESE CITIZEN AND BEFORE INVESTING IN A PLANTATION IT TOOK OVER 2 YEARS TO VERIIFY IT'S BONA FIDES. THERE IS NO PRIVATELY OWNED LAND IN VIETNAM - THE NATIONAL GOVERNMENT OWNS, AS WESTERNERS UNDERSTAND OWN THE WORD.
Technically the corporate rate is 20% (not enforced) but companies like Samsung have been paying as low as 5%. so this global minimum tax does change a lot
If you really think about it in a practical sense you are going to Vietnam because the cost of manufacturing is lower than your own country or at least the majority of the other handful of countries. This really is both good and bad but in reality how many billion Dollar bracket companies are we talking about? Sure 15% for someone who just makes it over that threshold would be really upset i certainly would but if your choosing the country for its cheap labor but its quality is a high stadard whats really the issue?
more like somebody's pocket and Vietnam's military own many corporations like Viettel, shipbuilding, EVN, Coal corporation, Vietnam helicopter airline, Vietnam airline. The idea that Vietnamese military need money is absolutely ridiculous and laughable.
First, Vietnam does not offer good visa or path to citizenship. Second, first, country starts with Global Tax on Billionaires, than change law and add Millionaires and change again and add Global Tax on any income. Than you have to pay double taxations, Vietnams where you have one year status and no possibility to get Vietnamize citizenship and another tax from country you are citizenships
No, there's nothing technically wrong or immoral with it. But it's not a good decision from a strategic long-term standpoint, as it's a good time for Vietnam to start taking manufacturing away from China.
I PAY VN FOREIGNER TAX. I employ people (VN) & they want CASH no deduct ables. They won't work for for us if they have to pay deductables. VN is a huge cash society - and tax avoidance is standard practice. This wonderful new free money e-transfer system will be the foundation of the VNese tax system. The moral is USE CASH ONLY!😮
Vn needs to provide preferred treatment to ASEAN investors. Many businessman from rich countries like Singapore, Malaysia and Brunei are interested to invest but the complicated immigration,land and tax policies are a big deterrence.
Taiwanese firms started to invest in VN since 1990s, I saw them setup interview in Hotels for local staffs for very cheap cost, there were investment advisors setup shops in the hotels as well. Immigration, land and tax laws are minor issues, hire some good local accountant, lawyer and secretary/translator ironed it out the resources for you. The government would not give you preferred treatment, it's the other way around, cunning businessmen sensed good profit opportunities, why couldn't you? Looking for hand outs from the government, too bad.
It is called sneak preview, just like in TV shows or movies. It is not made to have a sense. It is meant to capture the intentions. We appreciate that you watch our content we put out for free.
@duongglobalbusinessconsulting I get that you're trying to be eye-catching, but have you considered that viewers don't like to be led to believe something, and then get told otherwise? Straight and direct is the better way to win someone's trust.
Stop sulting Mister! He is good man and public service! Many peoples learns from him how make money Vetnam. It is good video! The peoples can follow and lern many thing!
Vietnam is aligning with the US so following this trend is not surprising. The min tax is most likely to capture those MNCs that engage in "transfer pricing" like Coca Cola in Danang. I heard for the first 10yrs+ in Vietnam, Coca cola never paid any tax to Vietnam yet wanted to acquire more and more land for its expansion. I think this video is very misleading to investors because of the title and viewers don't realize it only affects large MNCs until they watch almost till the end. Misleading Click-bait.
It always starts somewhere. Note that the U.S. implemented its first income tax during the Civil War in the 1860s, primarily targeting the wealthy. It was initially meant to be a temporary measure to fund the war effort but has since become a permanent and integral part of the country's tax system. Thus, it will affects not only large companies but expats who are working in these companies as well, as the goal of any business is to make profits. That leads to a downsize of the workforce and salary reductions as well. We do not provide hearsay's. We provide factual information with a step-back on implications and ramifications. So, rather than complaining about free content, the global tax should be concerning to you just like any other taxpayer. Hope it helps!
HELLO COMRADE DUONG. I disagree with 90% of everything you said. What team of "legal experts" do you have? REALLY? Do they get their certificates from a match box? What percentage do your Vietnamese communist party give you?
What is a good “layer” and “forain”. Yes he is a good layer scamming taking your money as a communist spy. Learn how to spell and don’t be fooled by his communist spying tricks.
Can you stop making bad news for Vietnam economy is the as bad as it at it was just don’t try to put more fuel into the fire man if you don’t like Vietnam, just get the hell out. Don’t you know that tax incentive cannot be given out forever that should be a time that the country need to make money out of these foreign corporation man these capitalists foreign corporations are too greedy. In the US foreign corporation, don’t pay tax will be subjected to hefty fine and expulsion, man. All kind of legal problems will come for them
No, our audience expects us to provide real information, whether good or bad. 90% of the content we publish on our channel is positive. Where are your positive comments? We never see them. If you want propaganda information, you can visit any controlled channels. But we will take your analogy: if you do not like our channel, just leave.
Hey Mr. Duong. Do you know how to get bid for US Government Embassy contracts invVietnam from A-Z? I am looking into open a company in VN to do contract work for US Gov. I just registered for SAM account but there are many things and I got confuse... don't know what to do next. Leave me your contact email so we can communicate. Thanks in advance
Ken I appreciate your comments. It’s plain English easy to understand. Helpful.
The biggest issue as a small business owner in Vietnam is the two tiered tax system - ie: a family run business does not register for, nor pays, tax. Most of my suppliers are small local businesses that do not issue red stamped tax invoices. This has held back the growth of my business, as i can not make legal payments to these small vendors with my business accoutns without the tax office requiring more information. Very frustrating.
Have a heart Ruth, spread the wealth around a little.
@unshakabl I most certainly do. I legally employ local people, pay taxes and purchase the bulk of my materials and stock from local businesses
well then make "illegal" payments then 😄
Goodday Ken,
More work for you by the sounds of it.
Wishing you, your family, all your co-workers all Happy & Prosperous 2024.
Still recovering from other night.
Take care buddy
Cheers
Louis Kats your number 1 Fan in Melbourne, Australia 🇦🇺 🇻🇳
I'm often considering doing business in Vietnam as a solo-preneur in the cybersecurity field but stuff like this keeps me out of it. I was involved in a venture in VN back in 2005 (my first experience in VN) but not as the owner. That was not successful. So I am constantly intrigued but very hesitant to jump in.
Hi tracy I've could see your messages soun interesting me and best friend go to viernam in march to create our own bussines about Cybersecuritye let me a contact I would like to speak more about this
Hi Ken…..they must have been watching Thailands new Tax proposals……..all this does is tightens up the pockets of foreigners.
Ken, I was wondering: I know that technically one is a resident and can be approached for taxes if one stays in Vietnam for more than 182 days a year, but is this really enforced? In other words, what is the likelyhood of the govt coming after me for tax if I stay in Da Nang for say 9 months a year and go elsewhere for 3 months each year? I'm talking about being a perpetual tourist, bouncing to acquire each new e-visa, but staying beyond the 6 month period each year? What are your thoughts? Thanks for your informative videos (I subscribe)...
Technically yes. But they do nothing in practise. They don't care.
How about the personal overseas income - does a foreigner needs to pay taxes on earnings from overseas in Vietnam?
The party analogy was perfect! 😆
Vietnam’s Law on Personal Income Tax recognizes ten different categories of income, with a host of different deductions, tax rates, and exceptions applying to each of them.
A tax resident is defined as someone residing in Vietnam for 183 days or more in either the calendar year or a period of 12 consecutive months from the date of arrival. Tax residents are subject to PIT on their worldwide employment income, regardless of where the income is paid or earned, at progressive rates from five percent (5%) to a maximum of thirty five percent (35%).
Non-resident taxpayers are subject to PIT at a flat rate of twenty percent (20%) on their Vietnam-sourced income.
The reason l employ an accountant is to figure out the confusion. As an incentive we provide free childcare and free dental care to all employees who pay deductables without an argument.
Hello Ken, happy new year. Thank you for sharing. Love your video 🥳😎
How about personal income tax? Do I need to pay VN taxes if I live in VN more than 6 months in a calendar year regardless where I earn my income?
I can see the arguments from both sides, but I find the timing questionable. With so many corporations leaving China and wanting to move their manufacturing elsewhere, Vietnam is always mentioned as one of the top 3 countries that companies are looking to move to. As a developing economic country, I would think Vietnam would want to do everything it could to stand to be as "inviting" as possible. The creation of more jobs, and cash flow through the country's economy seems like it would be a win.
A 15% minimum tax seems pretty reasonable…. It compares nicely with the US planned 21% minimum tax.
Thank you for this information.
hello , do you have a video on remote workers in VN ?
I noticed that in Thailand there are many mom-and-pop cooking venders and such all around, is there something similar in Vietnam? I don't see that watching your videos?
Identical to Thailand.
@@duongglobalbusinessconsultingare there preferential investor policies for ASEAN investors?
privat individual taxes would be also interesting to talk about .
I won't change a dime for multinationals which are going away from China and want cheaper labor. The standard corporate tax is already 20% so it will affect only a few companies.
Why I will stay on short term visas. Long term visas are a license to tax better to live and work through foreign partners in 3 or 4 countries. Makes Dubai more attractive. Removing tax incentives is stupid.
136 countries have signed an agreement at a OECD summit in 2021 that includes Vietnam and set in motion in 2023. There are pros and cons. It benefits more for developed countries than developing/emerging economies. As for Vietnam, the VAT will be reduced by 2% on Jan2024. MNCs is still waiting for additional incentives like free land or utilities subsidies for future expansion as I believe Vietnam is the next manufacturing hub ex China for Taiwan/Japan/Korea
Regarding Vietnam's VAT, it will NOT BE REDUCED by 2%, it has been a temporary cut from 10% to 8%. The cut is just remaining in force to July 1st. Telecommunications, finance-banking, securities, insurance, real estate, metal and metal products, and mining (excluding coal) will not get the tax cut. Lowering VAT by 2 percentage points is a repeat of a policy adopted last year to support economic recovery post-pandemic.
15% wouldn't be unfair for billions club, considering low labor cost.
The global corporate tax is supposed to be 15% across the board.
Same in Thailand
Ken sir how much investment needed to open a small coffee shop in Vietnam 🇻🇳 ?
From $20,000
Thanks for the reply, I hope to see you soon for the consultation.
It is always best to partner an existing business. A(another) coffee shop might not be a wise choice. Business paperwork is a killer in VietNam.
As an American who spent 40 years working as a corporate slave and moved to Vietnam to escape the abuse and exp;oitation, I could not be happier that these greedy a-holes are being taxed to do business in Vietnam.
I really love Vietnam so much - I looked into buying a place there but it was just kinda of difficult/uncertain.
This is not just a “trend” but mandatory requirements imposed by the Western markets on various tax havens and investment destinations. Even Hong Kong recently has been compelled to agree to implement a global minimum tax rate
Be very careful when buying realty. You only can buy a term-limited LEASE as a Foreigner.
To Vietnam for a holiday is great but business is a big problem reason corruption.
YOU CANNOT BUY LAND IN VIETNAM. FOREIGNERS CAN PURCHASE A USER CERTIFICATE, SOMETHING A IN TO A LONG TERM LEASE, WHICH LASTS FOR SO MANY YEARS AT WHICH TIME IT IS DISSOLVED.
HOWEVER, VIETNAMESE CAN GET A PERTETUAL USER CERTIFICATE.
BE IT RESIDENTIAL HOUSING, CONDOMINIUM, MUD, THE OWNERSHIP OF REAL BUILDINGS ALL CEASE AFTER 70 ODD YEARS.
THE OTHER PROBLEM IS FINDING OUT WHO HOLDS THE PRESENT USER CERTIFICATE. THE ISLAND OF PHU QUOC (OFF THE SOUTH COAST) WHERE RICH COMPANIES WHO DID CHECKS ARE LOSING THERE INVESTMENTS TO BULL DOZERS WHEN SENIOR GOVERNMENTS DO DEEP INVESTIGATIONS AND DISCOVER A GREAT DEAL OF LAND IS DESIGNATED AS FOREST OR PARKLAND.
I LIVE IN VIETNAM MARRIED TO A VIETNAMESE CITIZEN AND BEFORE INVESTING IN A PLANTATION IT TOOK OVER 2 YEARS TO VERIIFY IT'S BONA FIDES.
THERE IS NO PRIVATELY OWNED LAND IN VIETNAM - THE NATIONAL GOVERNMENT OWNS, AS WESTERNERS UNDERSTAND OWN THE WORD.
🤨🤨 How much is the tax rate? What are the loopholes? there are NO free lunches!
Technically the corporate rate is 20% (not enforced) but companies like Samsung have been paying as low as 5%. so this global minimum tax does change a lot
Do you mind watching the 7-minute video? Everything is in there.
Look at the tax in USA . hey, VN is a paradise
If you really think about it in a practical sense you are going to Vietnam because the cost of manufacturing is lower than your own country or at least the majority of the other handful of countries.
This really is both good and bad but in reality how many billion Dollar bracket companies are we talking about? Sure 15% for someone who just makes it over that threshold would be really upset i certainly would but if your choosing the country for its cheap labor but its quality is a high stadard whats really the issue?
The Central gov needs money for defense and infrastructure modernization. Handouts from China are a trap. National independence is primary.
more like somebody's pocket and Vietnam's military own many corporations like Viettel, shipbuilding, EVN, Coal corporation, Vietnam helicopter airline, Vietnam airline. The idea that Vietnamese military need money is absolutely ridiculous and laughable.
Low priced producers can charge as much tax as they want. Where you going go? You would already be gone if you can save a few pennies some place else.
First, Vietnam does not offer good visa or path to citizenship. Second, first, country starts with Global Tax on Billionaires, than change law and add Millionaires and change again and add Global Tax on any income. Than you have to pay double taxations, Vietnams where you have one year status and no possibility to get Vietnamize citizenship and another tax from country you are citizenships
There's nothing wrong with asking foreign companies to pay their FAIR share of taxes (especially big corporation). Good for Vietnam 👍👍👏👏
No, there's nothing technically wrong or immoral with it. But it's not a good decision from a strategic long-term standpoint, as it's a good time for Vietnam to start taking manufacturing away from China.
This people works for Vietnamese government. Viet 50 cent army
I PAY VN FOREIGNER TAX. I employ people (VN) & they want CASH no deduct ables. They won't work for for us if they have to pay deductables.
VN is a huge cash society - and tax avoidance is standard practice.
This wonderful new free money e-transfer system will be the foundation of the VNese tax system. The moral is USE CASH ONLY!😮
The switch is inevitable.
@@careerenglishvn1578 NOT THAT I SEE. Young people don't realise getting a pension and health care in retirement is essential.
I mean the switch to digital money is inevitable@@daklakdigital3691
All investors will run away from Vietnam
Vn needs to provide preferred treatment to ASEAN investors. Many businessman from rich countries like Singapore, Malaysia and Brunei are interested to invest but the complicated immigration,land and tax policies are a big deterrence.
Taiwanese firms started to invest in VN since 1990s, I saw them setup interview in Hotels for local staffs for very cheap cost, there were investment advisors setup shops in the hotels as well. Immigration, land and tax laws are minor issues, hire some good local accountant, lawyer and secretary/translator ironed it out the resources for you. The government would not give you preferred treatment, it's the other way around, cunning businessmen sensed good profit opportunities, why couldn't you? Looking for hand outs from the government, too bad.
This is bad decision and the gnp
I am interested in your videos and want to watch but the introductions with mixed sentences that are incoherent and make no sense.
It is called sneak preview, just like in TV shows or movies. It is not made to have a sense. It is meant to capture the intentions. We appreciate that you watch our content we put out for free.
Actually the introduction makes me want to watch the entire video to get the whole context.
@duongglobalbusinessconsulting I get that you're trying to be eye-catching, but have you considered that viewers don't like to be led to believe something, and then get told otherwise?
Straight and direct is the better way to win someone's trust.
Stop sulting Mister! He is good man and public service! Many peoples learns from him how make money Vetnam. It is good video! The peoples can follow and lern many thing!
@ChatGPT a constructive suggestion that you should brush up your English writing skills a bit before commenting on a public platform, peace.
Vietnam is aligning with the US so following this trend is not surprising. The min tax is most likely to capture those MNCs that engage in "transfer pricing" like Coca Cola in Danang. I heard for the first 10yrs+ in Vietnam, Coca cola never paid any tax to Vietnam yet wanted to acquire more and more land for its expansion. I think this video is very misleading to investors because of the title and viewers don't realize it only affects large MNCs until they watch almost till the end. Misleading Click-bait.
It always starts somewhere. Note that the U.S. implemented its first income tax during the Civil War in the 1860s, primarily targeting the wealthy. It was initially meant to be a temporary measure to fund the war effort but has since become a permanent and integral part of the country's tax system. Thus, it will affects not only large companies but expats who are working in these companies as well, as the goal of any business is to make profits. That leads to a downsize of the workforce and salary reductions as well.
We do not provide hearsay's. We provide factual information with a step-back on implications and ramifications. So, rather than complaining about free content, the global tax should be concerning to you just like any other taxpayer. Hope it helps!
Does CocaCola & other MNC own the land in Vietnam? Do investors have to partner with local company like in China ?
Stupid money hugery
who? you mean those U.S companies exploiting dirt cheap labor and expecting 0% business tax rate too? agreed!
HELLO COMRADE DUONG. I disagree with 90% of everything you said. What team of "legal experts" do you have? REALLY? Do they get their certificates from a match box? What percentage do your Vietnamese communist party give you?
Is crazy peoples coment! Stop! Mr Ken good layer - know more than you about Vetnam peoples make monies and you forain person too!
What is a good “layer” and “forain”. Yes he is a good layer scamming taking your money as a communist spy. Learn how to spell and don’t be fooled by his communist spying tricks.
Mr Ken is free markets men! He make peoples monies! He no from China spyman!
Can you stop making bad news for Vietnam economy is the as bad as it at it was just don’t try to put more fuel into the fire man if you don’t like Vietnam, just get the hell out. Don’t you know that tax incentive cannot be given out forever that should be a time that the country need to make money out of these foreign corporation man these capitalists foreign corporations are too greedy. In the US foreign corporation, don’t pay tax will be subjected to hefty fine and expulsion, man. All kind of legal problems will come for them
No, our audience expects us to provide real information, whether good or bad. 90% of the content we publish on our channel is positive. Where are your positive comments? We never see them. If you want propaganda information, you can visit any controlled channels. But we will take your analogy: if you do not like our channel, just leave.
Thanks for the honesty!
@@duongglobalbusinessconsulting This is exactly what makes this channel valuable. Keep it up!
@@duongglobalbusinessconsulting Appreciate on the straight forwardness.
Hey Mr. Duong. Do you know how to get bid for US Government Embassy contracts invVietnam from A-Z? I am looking into open a company in VN to do contract work for US Gov. I just registered for SAM account but there are many things and I got confuse... don't know what to do next. Leave me your contact email so we can communicate. Thanks in advance
Contact@duongbusinessconsulting.com