Asia Pacific has long been the engine of global prosperity driven by its network of industrial supply chains, but two shifts are now changing its growth-profile dramatically.
First, Asian economies are becoming markets in their own right as their incomes rise. The second is that the ability to deliver products digitally has shifted the principal driver of regional growth from manufacturing to services.
Rapidly changing environment and events like the pandemic COVID-19 have changed the way the world operates and has a significant impact on real estate preferences and expectations in Vietnam. These uncertainties, in addition to existing on-ground challenges, have also solidified several ongoing trends.
After numerous responses from business leaders and professionals who participated in the KPMG Vietnam Building Construction and Real Estate (BCRE) Survey, we were able to identify the key challenges and current trends in the industry.
Social responsibility is not new to family businesses. However, issues related to sustainability, climate risk, poverty and uncertainty in many parts of the world are rising in importance.
Leaders are turning their attention to ‘people, planet and profit’ goals to generate value for the environment, create jobs, contribute to community prosperity and deliver long-term value to the family as well as the business.
Creating a balanced workforce of the future will take a strategic approach that applies a digital mind-set to the reinvention of work. We are seeing organizations responding to the inevitable need to reinvent. AI and digital technology are demolishing aging and soon-obsolete workplace structures.
While no one can predict entirely what will happen as the "new reality" world sets in, what organizations can control now is planning for scenarios that may occur and preparing for that future makeup of the workforce—one that will most certainly include forms of automation.
The real estate industry is moving more and more into the public eye due to increasing socio-political and regulatory tasks. The tasks range from the creation of affordable living space in the housing industry and the need to adapt development models on the commercial property market to the new workplace models.
In addition, those involved in the market must equally deal with the changed view of sustainability criteria, which are now summarized under the abbreviation ESG (Environmental, Social, Governance).
A delightful customer experience (CX) is the key to shoring up long-term relationships and creating sustained value.
Most of what helps customers remember a organization often comes not from positioning, but from their experience with the organization
Family businesses are a major contributor in various nations, including Vietnam. These enterprises are unique, thanks to the intertwining of the family and the business.
KPMG Private Enterprise and the Successful Transgenerational Entrepreneurship Practices (STEP) Project Global Consortium study 2439 family business leaders from 70 countries and territories to map out their key to stay in power and step ahead of the competition.
2021 Vietnam CFO Survey Report
With insight from nearly 70 Finance Leaders and C-Levels from a wide sample of businesses, KPMG’s 2021 CFO Survey defines where Finance in firms in Vietnam currently stands, its opportunities, threats, expectations and the direction of its growth. Our findings converge, indicating ample development potential for businesses in Vietnam as a whole and their Finance in particular. All signs point to digital transformation and data-enabled people as the key to success for the finance function and at the heart of it all are CFOs, digitally adept and ready to lead the forthcoming changes. But to do that, CFOs in Vietnam will need to evolve with the help of their organizations.
Vietnam Customer Experience Excellence Report 2021
Having gone through the COVID-19 pandemic, citizens around the globe, including Vietnam, have adopted a new-normal lifestyle. As a result, businesses need to adjust their approach to consumers. Check out our latest report to see how companies have performed during the upheaval and gain insights on the supply chain domain.
On 8 October 2021 the Inclusive Framework (IF) on Base Erosion and Profit Shifting released details of an agreement which refines the statement of 1 July 2021. In terms of consensus, 136 of the 140 Inclusive Framework countries have agreed to this release. Learn more about the latest October update of the agreement in this article.
KPMG 2021 CEO Outlook
Optimism is back in the boardroom. It’s been about 18 months since the World Health Organization declared a global pandemic, and the latest edition of our CEO Outlook survey gauges how leadership strategies and concerns have shifted during these demanding times.
IFRS - Is it the responsibility of only accountants? (VN article)
The difference between VAS and IFRS is expanding and creating numerous conflicts for companies. What are the benefits of IFRS adoption and what is the framework in Vietnam?
The on-demand economy is accelerating the speed of transformation all over the world. What is it and how have businesses adapted to the emerging market demands?
Our legal update would cover the following matters:
— New Law amending a number of laws including, but not limited to, Law on Investment, Law on Electricity and Law on Enterprises
— New regulations on management of e-commerce websites and e-commerce activities via mobile applications in cellphone devices
In order to create favorable conditions for tax declaration and remove difficulties in paying provisional Corporate Income Tax (“CIT”), the Ministry of Finance has prepared a draft Decree to submit to the Government which amends and supplements a number of articles of Decree 126/2020/ND-CP and Decree 123/2020/ND-CP. Notably, the Draft Decree proposes that the provisional CIT payment for the four quarters of a taxpayer must not be less than 80% of the total CIT liability of the annual CIT finalization. Currently, Decree 126/2020 requires the provisional CIT for the first three quarters to account for at least 75% of the annual CIT liability.
The recent relaxation in entry permit, visa and quarantine regulations for foreigners entering Vietnam is promising and should result in increasing mobility for business travelers, investors and those coming to work longer term in Vietnam. However, when COVID-19 is well controlled, some regulations which were issued to support businesses and foreigners during the COVID-19 pandemic may be removed and the immigration requirements for foreigners revert back to pre-pandemic norm. This in-turn may cause issues for businesses to recruit and maintain a suitable foreign labour force in Vietnam.
Following the Resolution No. 43/2022/QH15, on 28 January 2022, the Government issued Decree 15/2022/ND-CP guiding the implementation of the tax relief measures relating to the VAT reduction and CIT deductibility for Covid-19 donation and sponsorship expenses. Accordingly, the VAT for the goods and services which are currently subject to the rate of 10% to 8%, applicable from 1 February 2022 to 31 December 2022.
KPMG would like to share the very recent update on legal legislation for your reference. Our legal update would cover the following matters:
— New regulations on the business of electronic gaming with prizes for foreigners
— New regulations on penalties for administrative offences in planning and investment sector
— New regulations on working hours and resting hours applicable to employees doing seasonal production work and processing works under orders
On 18 January 2022, Standing Deputy Prime Minister Pham Binh Minh approved to remove entry permit requirement for foreigners and Vietnamese overseas, who already have valid permanent cards, visa, temporary resident cards or visa exemption. Please refer to our Alert on the Official letter 405/VPCP-QHQT for more information on the cease of entry permit.
The General Department of Taxation (“GDT”) issued the Official Letter No. 4110 dated October 27, 2021 on the tax treatment related to Covid-19 expenses (“OL 4110”). According to OL4110, the GDT lists out a number of expense items that shall not be taken into account for PIT calculation of the employees whilst being deductible for Corporate Income Tax (“CIT”) if the expenses are incurred and are supported by legitimate supporting documents,
On 14th December 2021, the Social Insurance Agreement (“the SIA”) between Vietnam and Korea was
signed by the Minister of Labour, War Invalids and Social Affairs (Vietnam) and the Minister of Health and
Welfare (Korea) on behalf of the Governments of the two countries.
According to Decree No. 07/2016/ND-CP dated 25th January 2016 of the Government (“Decree 07”) guiding the Commercial Law on representative offices of foreign entities (“RO”) in Vietnam, ROs are required to submit an annual operation report (“Annual Report”) to the provincial Department of Industry and Trade no later than 30th January of the following year.
On 8 November 2021, the Government enacted Decree No. 98/2021/ND-CP on management of medical
devices (“Decree 98”). Decree 98 will come into effect on 1 January 2022 and replace Decree No. 36/2016/
ND-CP dated 15 May 2016 (amended by Decree No. 169/2018/ND-CP and Decree No. 03/2020/ND-CP)
The Draft Decree amending Decree 111 (Decree guiding the development of supporting industries ("SI")) with the aim to clarify some regulations on determination of SI incentives, expanding the list of SI products, and also adding more criteria for permission of SI incentive.
Vietnam at a glance
Overview of key economic trends and financial regulations that influence the landscape in Vietnam.
*New* IFRS Academy
KPMG Vietnam and the State Securities Commission (SSC) join forces to provide IFRS training to staff members from SSC, Hanoi Stock Exchange and Ho Chi Minh Stock Exchange to catch up with the application of IFRS.
As explained in the previous article,
accounting infrastructure development contracts in Vietnam faces various issues related to intangible assets, depreciation of fixed assets and interest expenses. IFRIC 12 can suggest the solution.
*New* IFRS Academy
The adoption of
International Financial Reporting Standards (
IFRS) may offer effective solution to unresolved issues in accounting infrastructure development contracts in Vietnam.
Macroenvironment & Statistics
In general, Vietnam promulgates a principle to treat local and foreign investor equally. However, at national privilege, Vietnam still restricts market entry of foreign investment in some...
Recent years observed the international economic integration through the participation into many free trade agreements/ communities such as the WTO, CPTPP, EVFTA, and UK-Vietnam FTA...
Sector & Industry
Countries around the world witnessed negative GDP growth in 2020 and are still suffering from the lasting impact presented by the pandemic. Amid this challenging period, Vietnam has emerged as a rising star by keeping the economy growing, albeit at a slower...
The supply chain practice of the past will no longer be sufficient to support the future marketplace in an optimal way.
This survey report will provide insights about the supply chains in Vietnam, in terms of ‘Where we are' to 'Where to go next' and 'How to go’.
The COVID-19 pandemic may mean that common working capital warning signs flare up earlier. Companies should monitor internal metrics and business partner performance for red flags, and prepare a list of contingency options....
SWIFT (Society for Worldwide Interbank Financial Telecommunications) is a vast messaging network used by banks and other financial institutions to quickly, accurately, and securely send/receive...
Over the past two decades, Vietnam has achieved laudable improvements in key quality of life metrics such as life expectancy, infant mortality, and access to affordable medicines...
In recent years, customer experience has become one of the key factors for a company’s success. More companies in Vietnam have realized the importance of customer experience...
The infrastructure sector has been an unsung hero of the COVID-19 crisis. Despite the complete disruption to how our economies operate and how we live our lives...
The IFRS Roadmap in Vietnam was officially announced in Decision No.345/QD-BTC on 16 March 2020 by the Ministry of Finance (MoF), a year after introduction of the draft version. Against the mandate by the MoF...
Updating the latest tax audit trends and changes in 2021.
Our slides from the 2020 Tax and Legal Institute
Ms Le Thi Kieu Nga
Partner, Corporate Tax
Mr Ta Hong Thai
Partner, Corporate Tax