Socialist Republic of Vietnam

Ha Noi, Dec. 16 (VNA) -- Viet Nam has pledged its stronger support for foreign investors, as well as its pursuit of constant policies towards foreign direct investment (FDI) businesses.

The commitment was renewed by Deputy Finance Minister Le Thi Bang Tam at the fifth dialogue in Ha Noi on Monday between her ministry and FDI investors in Viet Nam.

Tam said that between the two dialogues with foreign investors, the ministry issued 40 more regulations and instructions to help implement the government's policies on taxation, auditing and accounting with the goal of creating every favourable condition for FDI investors to do business in the country.

However, some mechanisms and policies have not been observed effectively and as such they will need to be revised soon, she told the dialogue, which was attended by more than 100 business leaders and executives.

Tam also recognised the need to devise a strategy for tax reforms in the 2001-2010 period, saying that the strategy would be submitted to the Government for early approval.

The laws on corporate income, valued added tax, special consumption tax, and import-export tax would be also revised to ensure that a simple and uniform tax system would be established and equal tax payments implemented, she stressed.

The deputy foreign minister also said the ministry would complete the promulgation of a standard auditing and accounting system by the end of 2004 and laws on accounting early next year to help businesses improve their financial and accounting management.

During the dialogue, business leaders and executives were most concerned over issues relating to the policies on import tax, special consumption tax, and land lease.

"Although my enterprise has long been converted to a wholly foreign invested company, it still has to pay land lease tax in accordance with the government's regulations on joint-venture companies", said Nguyen Tien Dung from a Taiwanese company in the southern Bien Hoa industrial park.
They also raised concerns about the "conflicting" legal documents, which have caused difficulties to both the business community and local administration in carrying out the tax policy.

"Legal documents should be improved to conform to realities as well as to ensure business profits", Toyota vice-general director Lam Chi Quang said, adding that this improvement would help FDI investors increase their investments and business operations in a durable and stable manner in the country.