Import tax rates bet88 con be reduced for improvement of trade environment

The Ministry of Finance (MoF) has proposed adjustments bet88 con Most Favored Nation (MFN) import tax rates on ten product groups, in order bet88 con create a more balanced and fair trading environment with Vietnam’s Comprehensive Strategic Partners.

bet88 con navigate the evolving and unpredictable global geopolitical and economic landscape, where shifts in economic, trade, and tariff policies are creating swift and profound ripple effects on global investment and commerce, including in Vietnam, the Prime Minister issued Directive No. 06/CT-TTg on March 10, under which the MoF is tasked with urgently proposing amendments bet88 con Decree No. 26/2023/ND-CP, dated May 31, 2023, bet88 con adjust tax rates on selected product groups. The goal is bet88 con strike a balance between economic priorities while ensuring a streamlined approval process, with completion set for March.

New context

Among the key updates, tax reductions are set bet88 con be applied bet88 con ten product categories. According bet88 con Mr. Nguyen Quoc Hung, Director of the Department of Management and Supervision of Tax, Fees and Charges Policies at the Ministry of Finance (MoF), the proposed decree is designed bet88 con enhance Vietnam’s trade balance, encourage businesses bet88 con diversify their imports, and stimulate consumer demand. Just as importantly, it prioritizes simplicity and clarity, making compliance easier for taxpayers while fostering a more dynamic market environment. “The guiding principle in drafting the decree is bet88 con ensure compliance with the tax rate provisions outlined in the Law on Export and Import Duties,” he said. “The adjustments bet88 con import duties will apply bet88 con goods that are not yet produced domestically or those that are produced but are insufficient bet88 con meet demand.”

He further explained that the draft decree focuses on adjusting import duties for high-value imported goods that are of interest bet88 con trading partners. The revised tax rates will generally not be lower than those stipulated in Vietnam’s free trade agreements (FTAs). Additionally, adjustments will not introduce new tax rate categories in the tariff schedule. The aim is bet88 con maintain uniform tax rates for goods of similar nature and category, preventing trade fraud and minimizing difficulties in classification and tax assessment.

The world’s economic and political landscape is shifting rapidly, with major changes in trade policies and tariffs. These shifts present significant challenges for Vietnam’s economy, requiring the government bet88 con respond with agility and strategic adjustments.

Directive No. 06 outlines key priorities and solutions bet88 con help Vietnam proactively navigate global and regional developments. As part of these efforts, the government has directed the MoF bet88 con urgently revise Decree No. 26 on MFN import tax rates, ensuring a more balanced and rational approach. The process is set bet88 con be completed within March under an expedited timeline.

In a discussion with the media, Mr. Hung highlighted the significance of this MFN tax adjustment in strengthening Vietnam’s trade ties with its Comprehensive Strategic Partners, particularly the US.

Vietnam and the US signed a Bilateral Trade Agreement in 2001, but the absence of a dedicated FTA means US exports bet88 con Vietnam still face MFN tariff rates rather than preferential treatment. The Comprehensive Strategic Partnership represents the highest tier of diplomatic and economic relations, built on long-term mutual interests, support, and collaboration across multiple sectors.

The Comprehensive Strategic Partnership between Vietnam and the US was established on September 11, 2023. However, without a bilateral FTA, US imports remain subject bet88 con MFN tariffs, which apply equally bet88 con all WTO members. This creates a competitive disadvantage for US goods compared bet88 con those from countries that already have FTAs with Vietnam.

Beyond the US, Vietnam has Comprehensive Strategic Partnerships with eleven other countries, including China, Japan, South Korea, Australia, Russia, India, France, Singapore, Malaysia, Indonesia, and New Zealand. Ensuring fairness in tax policies across these key trade partners is essential.

With the government’s directive in place, the MoF has underscored the need bet88 con adjust MFN import tax rates for select goods bet88 con ensure fair treatment for Vietnam’s Comprehensive Strategic Partners.