The Effectiveness of Corporate Tax Incentives in Attracting Foreign Direct Investment: The case of Vietnam

DOI

10.2991/cssdre-19.2019.58How to use a DOI?

Keywords

Tax policy, corporate income tax, tax rates, tax incentives, FDI, Vietnam, ASEAN

Abstract

Foreign investment plays an increasingly important role in the socio-economic development of developing countries including Vietnam. In order to attract foreign investment, Vietnam has issued many incentives to enhance the attractiveness of the investment environment, in which tax policies, especially corporate income tax policies are always paid attention and commonly used. By using qualitative research method, author evaluates the process of adjusting and implementing corporate income tax policies in Vietnam to attract foreign investment and compare the correlation with other countries in ASEAN. Research results show that Vietnam's corporate income tax policy has been significantly improved, the current corporate income tax rate is 20%, down nearly 38.5% since 1990. Compared to ASEAN countries, Vietnam's corporate income tax incentives policies are quite similar, which has helped improve Vietnam's comparative advantage in attracting investment, contributing to actively mobilizing FDI capital into Vietnam during this time. However, Vietnam 's corporate income tax incentives policies are mainly made for reducing tax rates, applying tax exemption time which created loopholes for FDI enterprises to avoid and evade taxes illegal.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hao Thien Van
PY  - 2019/06
DA  - 2019/06
TI  - The Effectiveness of Corporate Tax Incentives in Attracting Foreign Direct Investment: The case of Vietnam
BT  - Proceedings of the Volgograd State University International Scientific Conference "Competitive, Sustainable and Safe Development of the Regional Economy" (CSSDRE 2019)
PB  - Atlantis Press
SP  - 289
EP  - 293
SN  - 2352-5428
UR  - https://doi.org/10.2991/cssdre-19.2019.58
DO  - 10.2991/cssdre-19.2019.58
ID  - Van2019/06
ER  -