Misubishi Motors proposed the Ministry of Finance for tax incentives

VCN – On the afternoon of 16th January 2018, Vice Chairman of Mitsubishi Motors Group, Mr. Kozo Shiraji, had a meeting with Deputy Finance Minister Vu Thi Mai  in his visit to Vietnam to discuss the second plant investment project of the Group in Vietnam.
misubishi motors proposed the ministry of finance for tax incentives Minister Dinh Tien Dung: committed to issue many policies to attract Japanese investors
misubishi motors proposed the ministry of finance for tax incentives Many new tax incentives for investment projects in Hoa Lac Hi-Tech Park
misubishi motors proposed the ministry of finance for tax incentives To answer questions about the preferences for certificates of origin
misubishi motors proposed the ministry of finance for tax incentives
Deputy Finance Minister Vu Thi Mai and Mr. Kozo Shiraiji

At the meeting, Deputy Minister Vu Thi Mai said that the view and goal of the Vietnam Government is to develop the automotive industry to become an important industry of the country, meeting the needs of the domestic market for trucks, passenger cars and some specialized cars; to become a supplier of components, spare parts and some high value components for the world's automotive industry, contributing to economic growth and promoting the development of other industries. Thus, the Government of Vietnam in general and the Ministry of Finance in particular have welcomed the second plant investment project of Mitsubishi Motors in Vietnam.

Sharing with the leaders of the Ministry of Finance on the project, Mr. Kozo Shiraji said that Vietnam was one of the important production areas, potential markets of the group in Southeast Asia with young and skilled labour resources and great advantages in the field of motorbike and car production.

At present, Mitsubishi Motors has a car plant in Ho Chi Minh City and is studying the investment project to build a second automotive plant in Vietnam. It is expected that the plant will have a total investment of US$ 250 million and start its operation from mid-2020 with a planned capacity of 50,000 units per year. This capacity is expected to increase by more than 30,000 units per year by 2023. Therefore, the plant will provide jobs for about 1,000 employees.

The Group is interested in placing the plant in industrial parks, developed economic areas or areas near to seaports with the ability of large domestic and international transport. And it believes that the project will contribute to the socio-economic development of Vietnam.

For the project to be effective, Vice Chairman of Mitsubishi Motors made some recommendations on tax policy to the Ministry of Finance. Regarding the new policy, Mr. Kozo proposed to consider tax exemption for imported components of automobile assembly and manufacture in order to increase competitiveness for domestically assembled and manufactured cars in the context that imported CBU cars from ASEAN receive preferential tax rate 0%; exemption from special consumption tax on the localized parts of the domestically manufactured cars; and reduction of 10% tax on domestically manufactured cars for at least 10 years.

"I understand that if such above incentives are contradictory to the WTO commitments, it will be difficult to decide. However, we would like the Government of Vietnam to consider other policies with similar supportive conditions “. Mr. Kozo Shiraji said.

With current policies, Mitsubishi Motors expects that the existing plant shall be exempt from import duty on import components from 2018 until the second plant goes into operation.

According to him, investment projects in automotive manufacture are able to place a foothold in the market and are almost unaffected by the changes of other factors such as price, labour, so they can maintain an existence up to 20 years. Therefore, Mitsubishi Motors representative hopes that the Government and the Ministry of Finance of Vietnam will support the Group to carry out this project smoothly.

Deputy Prime Minister Vu Thi Mai responded that in respect of import tax exemption, the Government issued Decree No. 125/2017 / ND-CP promulgating the Preferential Import Tariff, which stipulates import tax exemption for this commodity from 1st January 2018 to 2022. Of course, in order to receive preferential treatment, enterprises must satisfy some conditions of production scale and minimum output. She hoped that the Group would meet these conditions to receive preferences as desired.

Regarding the special consumption tax, the Deputy Minister stated that any tax polices should be in line with international commitments and WTO commitments. Currently, the Ministry of Finance is studying to amend and supplement the Law on Special Consumption Tax, the draft offers 2 options which are tax exemption for localized parts and maintaining the current regulation. The Ministry of Finance as well as the relevant agencies and the Government must also consider the commitments, especially WTO commitments to make appropriate policies without breaching these commitments.

Deputy Minister Vu Thi Mai also suggested that the Group provide some international experiences on other supportive policies for the Ministry of Finance to study and assist in the cases where preferential tax policies cannot be met.

misubishi motors proposed the ministry of finance for tax incentives Automobile market reducing 10%, ending the dramatic year

VCN- According to the latest report of Vietnam Automobile Manufacturers Association (VAMA), total buying power of automobiles ...

"The Government and the Ministry of Finance are always ready to support enterprises to invest, develop production and business in Vietnam and at the same time wish to provide utmost support to encourage localization of domestic production.” The Deputy Minister stressed.

By Hong Van/ Huyen Trang

Related News

Disbursement of public investment from foreign loans reaches 39.06% of the plan

Disbursement of public investment from foreign loans reaches 39.06% of the plan

VCN - At a conference held on December 3, 2024, to discuss the disbursement progress of public investment from foreign loans in the final months of the year, the Department of Debt Management and External Finance reported that ministries and agencies had disbursed over VND3.285 trillion. Notably, six ministries proposed returning a total of VND2.0924 trillion from the 2024 allocated budget.
Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

VCN - In order to promote the early recovery and development of production and business activities, contributing back to the State budget, the Ministry of Finance proposed to continue reducing 2% of VAT on groups of goods and services currently subject to a tax rate of 10% in the first 6 months of 2025.
Deputy Prime Minister, Minister of Finance: Budget management to be more decentralized

Deputy Prime Minister, Minister of Finance: Budget management to be more decentralized

VCN - Deputy Prime Minister, Minister of Finance Ho Duc Phoc indicated that the revision of the State Budget Law (SBL), as part of the "One Law Amending Seven Laws" scheme, focuses on removing short-term bottlenecks and obstacles. He also announced that future amendments will increase decentralization and delegation of authority in budget management.
Businesses can choose a suitable electronic invoice model generated from the cash register

Businesses can choose a suitable electronic invoice model generated from the cash register

VCN - The Ministry of Finance said that individual business households can choose a suitable model to apply electronic invoice solutions from cash registers, depending on the number of invoices used in the year, in the month and the current status of software solutions and technical infrastructure.

Latest News

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

VCN - For the first time in its history, Ho Chi Minh City’s budget revenue surpassed VND500 trillion in just 11 months of 2024.
Accelerating public investment in national key transportation projects

Accelerating public investment in national key transportation projects

VCN - According to the Ministry of Finance, the disbursement of funds for national key transportation projects in the first ten months of 2024 exceeded the average disbursement rate for other sectors. However, the pace has slowed in recent months.
State capital management commission to be dissolved

State capital management commission to be dissolved

The Commission for Management of State Capital at Enterprises will cease its operations, following Resolution No 18 of the Central Party Committee.
There is still room for credit growth at the end of the year

There is still room for credit growth at the end of the year

VCN - To achieve the credit growth target of 15% for the whole year of 2024 as directed, the banking system will have to "pump" out nearly VND 670,000 billion of loans to the economy in the last 2 months of the year, so many solutions are needed to accelerate capital flow.

More News

The importance of user-friendly tax platforms for online retailers

The importance of user-friendly tax platforms for online retailers

VCN - The e-portal for individual and business households engaging in e-commerce activities has been completed. Trial runs for its interface, operational solutions, and functionality have also been finalized, with plans to officially roll out the portal soon.
Nearly 30 trillion VND mobilised through G-bond auctions

Nearly 30 trillion VND mobilised through G-bond auctions

The Hanoi Stock Exchange successfully organised 17 Government bond auctions in November, raising 20.76 trillion VND (817.56 million USD) for the State Treasury.
Expecting cross-border M&A deals

Expecting cross-border M&A deals

VCN - In order for the Vietnamese mergers and acquisitions (M&A) market to grow stronger and become a destination for global capital flows, in the current context, the driving force of cross-border deals is still needed.
Credit growth target of 15% for 2024 within reach: SBV

Credit growth target of 15% for 2024 within reach: SBV

The banking system's credit growth had risen by 11.12% as of November 22 compared to the end of 2023, hence the 15% growth target for the whole year is reachable, according to the State Bank of Vietnam (SBV).
Multiple drivers propel positive growth in budget revenue

Multiple drivers propel positive growth in budget revenue

VCN - Dr. Bui Dang Dung, former Deputy Chair of the National Assembly’s Finance and Budget Committee, believes that the 2024 state budget revenue results are highly encouraging, reflecting the concerted efforts of the Government, relevant agencies, and the business community amid challenging economic conditions.
Drastic measures needed to accelerate disbursement of foreign-funded public investment

Drastic measures needed to accelerate disbursement of foreign-funded public investment

Drastic measures are needed to remove roadblocks and accelerate the disbursement of foreign-funded public investment in the remaining months of this year, as the disbursement rate remains far below the target of 95 per cent, according to the Ministry of Finance.
Urging collection of land-related revenues in the last month of the year

Urging collection of land-related revenues in the last month of the year

VCN – In order to achieve the highest revenue target in the last month of 2024, creating momentum for the good implementation of socio-economic development tasks in 2025 and the period 2026 - 2030, the Prime Minister assigned the Ministry of Finance to promote revenue management solutions, strictly control tax assessment, tax declaration, tax payment, and collect arising revenues, especially revenues related to land.
Innovation and restructuring of state-owned enterprises: Start from institutions

Innovation and restructuring of state-owned enterprises: Start from institutions

VCN - The work of restructuring and innovating state-owned enterprises (SOEs) has had remarkable results in reducing quantity and improving quality, but is still behind schedule and the effectiveness is not commensurate with the resources.
Tax policies facilitate business development

Tax policies facilitate business development

VCN - Sharing with Customs News on the sidelines of the Tax and Legal Forum 2024 recently held, Deputy General Director, General Department of Taxation Dang Ngoc Minh (photo) said that the Government is researching and implementing new tax policies to support and facilitate business development in the time to come.
Read More

Your care

Latest Most read
Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

For the first time in its history, Ho Chi Minh City’s budget revenue surpassed VND500 trillion in just 11 months of 2024.
Accelerating public investment in national key transportation projects

Accelerating public investment in national key transportation projects

According to Ministry of Finance, the disbursement of funds for national key transportation projects in the first ten months of 2024 exceeded the average disbursement rate for other sectors. However, the pace has slowed in recent months.
Disbursement of public investment from foreign loans reaches 39.06% of the plan

Disbursement of public investment from foreign loans reaches 39.06% of the plan

Regarding disbursement progress of public investment from foreign loans in the final months of 2024, Department of Debt Management and External Finance reported that ministries and agencies had disbursed over VND3.285 trillion
State capital management commission to be dissolved

State capital management commission to be dissolved

The Commission for Management of State Capital at Enterprises will cease its operations, following Resolution No 18 of the Central Party Committee.
There is still room for credit growth at the end of the year

There is still room for credit growth at the end of the year

To achieve the credit growth target of 15% for the whole year of 2024 as directed, the banking system will have to "pump" out nearly VND 670,000 billion of loans to the economy in the last 2 months of the year
Mobile Version