Recently, a successful scientific seminar on the topic "The Impact of Global Minimum Tax on Foreign Direct Investment in Vietnam" was held at the University of Economics and Business, Vietnam National University. The seminar featured speakers who are policy makers and economic experts from various prominent organizations and institutions in the country. The event was part of the UEB Research and Sharing series, organized by the University of Economics and Business, Vietnam National University, with the Department of International Economics and Business as the technical coordinator.
Keynote speakers of the seminar included: Associate Professor Dr. Nguyen Anh Thu - Vice Rector of the University of Economics and Business, Vietnam National University; Dr. Can Van Luc - Chief Economist of BIDV and Director of BIDV Training and Research Institute; Ms. Nguyen Thu Thuy - Deputy Head of the Legal Department, Ministry of Finance; and Ms. Huong Vu - Managing Director, Ernst & Young Vietnam Consulting Company.
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In his opening remarks at the seminar, Associate Professor Dr. Le Trung Thanh - Rector of the University of Economics and Business, stated: "The purpose of this seminar is to provide a platform for policymakers, researchers, association members, and business executives to discuss the impact of the global minimum tax (GMT) policy on Vietnam and to propose appropriate policies to continue attracting foreign investors."
Assoc. Prof. Dr. Le Trung Thanh - Rector of the University of Economics, gave the opening speech.
The seminar consisted of four main presentations. To kick off the event, Associate Professor Dr. Nguyen Anh Thu - Vice Rector of the University of Economics and Business, Vietnam National University, shared an overview of the global minimum tax, foreign direct investment (FDI) in Vietnam, and the impacts of implementing the GMT on Vietnam's FDI. In her presentation, she discussed the anti-base erosion and profit shifting initiative with its two key pillars. The presentation highlighted the challenges of losing significant competitive advantages in attracting FDI to Vietnam. However, these challenges also serve as motivation for the government and local authorities to identify new advantages for development.
Assoc. Prof. Dr. Nguyen Anh Thu, representing the research team from VNU University of Economics and Business, delivered the opening presentation at the seminar.
Dr. Can Van Luc, Chief Economist of BIDV and Director of BIDV Training and Research Institute, delved deeper into the potential impacts of the global minimum tax on Vietnam. The value of his presentation lies in the analysis, interpretation, and forecasts of the three potential global economic impacts and six main impacts of the GMT on Vietnam's economy and investment. Positive effects related to enhancing international integration and increasing tax revenue were discussed. However, challenges arising from the global minimum tax regulations were also emphasized, including the competitiveness in attracting FDI being affected, potential costs arising, and reserved issues. Seven recommendations were proposed at the end of the presentation, serving an important purpose in guiding the state agencies' responses to align with global regulations.
Dr. Can Van Luc provided a more in-depth presentation on the potential impacts of the global minimum tax.
Following that, Ms. Nguyen Thu Thuy - Deputy Head of the Legal Affairs Department at the Ministry of Finance - presented the policies and draft resolutions of the National Assembly regarding the pilot application of investment support policies in the high-tech sector and the supplementary CIT application under the Base Erosion and Profit Shifting (BEPS) framework. In her speech, she also highlighted certain issues that need continued review during the development of the resolution, notably: Vietnam needs to harmonize, unify, and adhere to global rules, ensuring investment incentives in accordance with the law. Additionally, Vietnam needs to study the policies of other countries, especially developing/neighboring nations with similarities.
Ms. Nguyen Thu Thuy presented on the government's policy response to the Global Minimum Tax (GMT)
In the final presentation, Ms. Huong Vu - Managing Partner of Ernst & Young Vietnam, mainly discussed Vietnam's proposed policy measures (expected to take effect from January 1, 2024), as well as technical challenges in policy development (tax policies and support policies). She also highlighted legal risks and options for managing potential disputes that may arise when implementing the Global Minimum Tax Rate (GMT), along with advice for FDI enterprises on how to navigate the impact of the supplementary minimum tax. An interesting aspect of Ms. Huong Vu's presentation was the numerous real-life anecdotes revolving around the success stories of FDI enterprises, their obstacles, and their desires when operating in Vietnam, which she vividly shared during the conference.
Ms. Huong Vu shared from the perspective of businesses
The conference also focused on questions and discussions from the audience. Experts from institutions such as the University of Economics and Business, the Diplomatic Academy of Vietnam, the Institute of World Economics and Politics, the Foreign Trade University, the Academy of Finance, and the Central Institute for Economic Management, among others, raised questions about the fairness of tax policy application, the impact of the Global Minimum Tax (GMT) on businesses, international cooperation in implementing the GMT, and the balance between domestic taxation and business support. The speakers engaged in discussions, answered participants' inquiries, and shared their predictions and expectations regarding Vietnam's response in the coming period.
An expert asks questions for the speaker
Faculty member of the Department of International Economics, VNU University of Economics and Business, asks a question to the speaker
The conference was a resounding success with valuable contributions and discussions from professors, teachers, and students towards the guest speakers.
The event provided a precious opportunity for experts and government representatives to discuss the impacts of the Global Minimum Tax (GMT) on Foreign Direct Investment (FDI) in Vietnam. The opinions and knowledge shared during the conference will play a crucial role in shaping Vietnam's strategies and policy directions regarding taxation and investment in the future.
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