‘Soft infrastructure’ creates momentum for new economic development
The significant improvement in Vietnam’s business environment is expected to be the major reason which helps Vietnam obtain high economic growth rate in difficulties, and helps ‘the fish swim against the current’ as economists commented.
Vietnam, from a low position compared with other regional countries, has jumped into a position in top ASEAN 6 with many indexes listed among the top ASEAN 4.
Reform worth trillions of dong
Two years ago, businesses had to come to taxation agencies to make tax declarations once every month. When the years finished, they had to queue up at taxation agencies to follow the procedures for tax finalization. If they were late in following the procedures, even though just one day, they would be fined for this.
Nowadays, the long queues in front of the one-stop-shop office of the Ho Chi Minh City Taxation Agency cannot be seen any longer. Only several people ask about procedures. There are fewer visitors than tax officers there.
This is explained by the fact that businesses nowadays do not have to send staff to taxation agencies for tax procedures as they cannot do these things at their offices, via internet.
An official report pointed out that businesses now can save trillions of dong just because they do not have to print documents and do not have to pay underground fees when meeting tax officers.
A senior executive of CP Group said the company can save VND60 billion a year in expenses for administration procedures as it now can pay taxes online.
In 2011-2012, businesses had to spend 1,050 hours on average on tax payment procedures.
Meanwhile, the figure has reduced to 872 hours. If considering the World Bank’s calculation method, the total number of hours businesses have to spend on tax payment procedures in 2016 is 171 hours only.
According to USAID, if the average pay to accountants is VND24.6 million, Vietnam would be able to save VND6.6 trillion as the time needed to pay tax and social insurance has been cut by 700 hours.
In the WB’s 2016 business environment report, Vietnam has increased by three grades. Its ranking has been upgraded by six notches, electricity access by 22 notches, credit access eight notches and tax payment by four notches.
Soft infrastructure will accelerate development
Goyal Aseem from ANZ Vietnam commented that with the drastic reform carried out recently, the government of Vietnam has been following the right way in developing the economy, and that this shows the government’s great efforts to create most favorable conditions for enterprises to run.
Chair of the Vietnam Chamber of Commerce and Industry Vu Tien Loc commented the government considers international standards as the targets for ministries and branches to strive for.
Reform worth trillions of dong
Two years ago, businesses had to come to taxation agencies to make tax declarations once every month. When the years finished, they had to queue up at taxation agencies to follow the procedures for tax finalization. If they were late in following the procedures, even though just one day, they would be fined for this.
Nowadays, the long queues in front of the one-stop-shop office of the Ho Chi Minh City Taxation Agency cannot be seen any longer. Only several people ask about procedures. There are fewer visitors than tax officers there.
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| The significant improvement in Vietnam’s business environment is expected to be the major reason which helps Vietnam obtain high economic growth rate in difficulties, and helps ‘the fish swim against the current’ as economists commented. |
This is explained by the fact that businesses nowadays do not have to send staff to taxation agencies for tax procedures as they cannot do these things at their offices, via internet.
An official report pointed out that businesses now can save trillions of dong just because they do not have to print documents and do not have to pay underground fees when meeting tax officers.
A senior executive of CP Group said the company can save VND60 billion a year in expenses for administration procedures as it now can pay taxes online.
In 2011-2012, businesses had to spend 1,050 hours on average on tax payment procedures.
Meanwhile, the figure has reduced to 872 hours. If considering the World Bank’s calculation method, the total number of hours businesses have to spend on tax payment procedures in 2016 is 171 hours only.
According to USAID, if the average pay to accountants is VND24.6 million, Vietnam would be able to save VND6.6 trillion as the time needed to pay tax and social insurance has been cut by 700 hours.
In the WB’s 2016 business environment report, Vietnam has increased by three grades. Its ranking has been upgraded by six notches, electricity access by 22 notches, credit access eight notches and tax payment by four notches.
Soft infrastructure will accelerate development
Goyal Aseem from ANZ Vietnam commented that with the drastic reform carried out recently, the government of Vietnam has been following the right way in developing the economy, and that this shows the government’s great efforts to create most favorable conditions for enterprises to run.
Chair of the Vietnam Chamber of Commerce and Industry Vu Tien Loc commented the government considers international standards as the targets for ministries and branches to strive for.