Taxation Structure The standard Corporate Income Tax (CIT) rate in Vietnam stands at 20%. Besides the already low tax rate, Vietnam also has preferential tax rates of 10%, 15% and 17% based on the industry and the size of business. The chart below provides a comparative view of the standard CIT Rates of 7 major ASEAN economies, and in doing… Continue reading Taxation Structure
Ease of Doing Business and Corruption Ease of Doing Business Ranking -Vietnam has an average ease of doing business ranking of 70 (2019). This rank has increased dramatically from 99 in 2013. Vietnam’s increasing ranking is mainly attributed to getting credit and paying taxes. The main issue dragging the rank down is its corruption but as aforementioned, the… Continue reading Ease of Doing Business
Government Structure and societal relations The socialist one-party state of Vietnam is under the leadership of the Vietnam Communist Party. The governing body is comprised of two main sections – the General Secretary, Prime Minister and President, and the National Assembly. Both the President and Prime Minister hold special powers regarding the nomination and suspension of Cabinet… Continue reading Government & Society
Demographic Advantage Population – With 97 million people residing in the country and an annual population growth rate of 1%, Vietnam is one of the most densely-populated nations in Southeast Asia. It recorded a literacy rate of 96% in 2018, a significant increase from 87.6% in 1989. The country has also made tremendous advancements towards reducing poverty. As showcased in… Continue reading Demographic Advantage
Historical Background The resilience of a nation can be seen through its history, and Vietnam’s constant clash with colonial powers is evidence of its ability to restore itself. With a continuous power struggle with China and Western nations after that, it took up to 1976 for the Republic of Vietnam to be declared as a… Continue reading Historical Background
Business Etiquette When conducting business in Indonesia, one must observe and respect the cultural norms that dictate business etiquette, as it could be the defining factor between success and failure. Hierarchy is very important in Indonesian society and a great degree of emphasis is laid on respecting people’s status. This forms the overarching structure within… Continue reading Business Etiquette
Digital Economy Indonesia’s relevance in the global economic landscape will be determined by its embrace of the future. In this age of digitization, the internet economy is of supreme importance as it may very well define the remainder of Indonesia’s growth story. On this front, Indonesia has made some sweeping advancements, metrics of which are… Continue reading Digital Economy
Foreign Direct Investment FDI by sector – Foreign Direct Investment in Indonesia stood at US$ 31.1 billion for the year 2021 with the ‘Metal, Machinery and Electronic’ industry drawing the most attention from investors. Chart 1 lists the five main invested sectors of Indonesia in 2019 with their respective shares of FDI inflows while chart 2 lists the… Continue reading Foreign Direct Investment
Taxation Structure Corporate Income Tax– The Corporate Income Tax (CIT) rate in Indonesia was recently reduced to 22% for the years 2020 and 2021. This CIT rate will be further cut to 20% commencing 2022. The chart below provides a comparative view of the standard CIT Rates of 7 major ASEAN economies, and in doing… Continue reading Taxation Structure
Ease of Doing Business and Corruption Perceived Transparency Ranking – Indonesia has long been rated as one of Asia’s most corrupt countries. Since independence, Indonesia has been ruled by two dictators, Sukarno and Suharto, and a culture of cronyism and favor seeking was allowed to foster. In 1998, Indonesia became a democracy and people were allowed… Continue reading Ease of Doing Business
