Lorenzo Riccardi

Vietnam Double Taxation Agreements: Selected Tax Avoidance Treaties Lorenzo Riccardi

Vietnam is a prime example of a developing country experiencing rapid growth in Asia. Similar to China, Vietnam is a one-party Communist state since the unification in 1975. After joining the World Trade Organization (WTO) in 2007, Vietnam has become an attractive destination for foreign investment. Investors view Vietnam as possessing a number of advantages; a highly educated workforce and large quantities in minerals are such examples. Another aspect relevant for Vietnam growth is certainly its strategic position since the country can reach all the other leading markets in Asia, including China and South East Asian countries. The fiscal system has recently been reformed in order to align rules with the economic development of the country. From January 1st 2009, a new Enterprise Income Tax Law and Personal Income Tax Law have been effected. Another relevant tax is the VAT, regulated by the Law on Value Added Tax and the Country has signed a significant number of fiscal treaties with other nations. This publication is a collection of main double tax agreements between Vietnam and foreign countries.