Private label segment on the rise among local retailers At a Co.opmart in Hanoi, Vu Hong Ngoc, a mother of two children, chose to buy Co.opmart’s own brand of cooking oil and boxed tissues. It is increasingly common to find products labelled under supermarket brands, offering less expensive prices to tempt frugal shoppers like Ngoc. Research by Kantar Worldpanel Vietnam showed that 39 per cent of Vietnamese shoppers at modern outlets prefer private-label products. The 10 most common products are toilet paper, box tissues, table napkins, loose-leaf tea, floor cleaners, liquid detergents, frozen foods, dishwashing liquids, detergent powders, and cooking oils, according to the research. A private label product is one that can be sourced from a manufacturer and sold under a retailer’s own brand. These products are therefore manufactured for exclusive sale by a particular retailer. According to Kantar Worldpanel Vietnam, private labels account for only 2.4 per cent of sales … [Read more...] about Private label segment on the rise among local retailers
Feminine hygiene products tax
PM tells authorities to investigate tax evasion
Media reports have suggested the Government to build a more effective mechanism to tackle the problem that prolonged loss-making FDI enterprises have still enlarged investment and production. — Photo cafebiz.vn Prime Minister Nguyen Xuan Phuc has assigned the Ministry of Finance (MOF) and General Department of Taxation (GDT) to study media reports on transfer pricing of foreign direct investment (FDI) enterprises and tax policy. Media outlets have reported that the number of FDI enterprises reporting losses during 2012-16 accounted for 44-51 per cent of total enterprises, a sign which may indicate transfer pricing. However, it can be difficult to know the truth as the tax authority is not empowered to investigate. The report in Tuoi tre (Youth) newspaper pointed out a fashionable transfer pricing strategy is through intra-firm parent debt or related-party loans, following which firms borrowed from their parent companies or affiliates with excessive interest expenses. Other … [Read more...] about PM tells authorities to investigate tax evasion
PM asks authorities to probe tax evasion by FDI firms
Viet Nam News HÀ NỘI – Prime Minister Nguyễn Xuân Phúc has assigned the Ministry of Finance (MOF) and General Department of Taxation (GDT) to study media reports on transfer pricing of foreign direct investment (FDI) enterprises and tax policy. Media outlets have reported that the number of FDI enterprises reporting losses during 2012-16 accounted for 44-51 per cent of total enterprises, a sign which may indicate transfer pricing. However, it can be difficult to know the truth as the tax authority is not empowered to investigate. The report in Tuổi trẻ (Youth) newspaper pointed out a fashionable transfer pricing strategy is through intra-firm parent debt or related-party loans, following which firms borrowed from their parent companies or affiliates with excessive interest expenses. Other pricing methods include inter-company transactions in various forms such as overseas parent companies selling raw materials and equipment to … [Read more...] about PM asks authorities to probe tax evasion by FDI firms
Food safety, hygiene shows improvement, but needs more measures
The prevention of food poisoning and food-borne diseases have been improved drastically and showed positive results based on the decrease on food poisoning cases in the first six months of this year (Photo: VNA) Hanoi (VNS/VNA) - The prevention of food poisoning and food-borne diseases have been improved drastically and showed positive results based on the decrease on food poisoning cases in the first six months of this year, a conference heard on July 20. The number of food poisoning cases nationwide is 53, a reduction of 27 cases compared to the same period last year. Eleven people died and around a thousand others were hospitalised this year, more than twice as many as 2017. Speaking at the conference on implementing food safety and hygiene, Vice Minister of Health Le Thanh Long said inspections on food safety and hygiene have been carried out from central to local levels. Reports from inspection teams from 63 cities and provinces showed that in the first 6 months of the year, … [Read more...] about Food safety, hygiene shows improvement, but needs more measures
Food safety and hygiene shows improvement, but needs more measures
The prevention of food poisoning and food-borne diseases have been improved drastically and showed positive results based on the decrease on food poisoning cases in the first six months of this year. — VNA/VNS Photo HÀ NỘI — The prevention of food poisoning and food-borne diseases have been improved drastically and showed positive results based on the decrease on food poisoning cases in the first six months of this year, a conference heard yesterday. The number of food poisoning cases nationwide is 53, a reduction of 27 cases compared to the same period last year. Eleven people died and around a thousand others were hospitalised this year, more than twice as many as 2017. Speaking at the conference on implementing food safety and hygiene held yesterday, vice minister of Health Lê Thành Long said inspections on food safety and hygiene have been carried out from central to local levels. Reports from inspection teams from 63 cities and provinces … [Read more...] about Food safety and hygiene shows improvement, but needs more measures
Two foreign brands dominate personal hygiene market in Vietnam
By Thi Ha  July 17, 2018 | 04:47 pm GMT+7 A Japanese and an American brand, Diana and Kotex, are enjoying the lion’s share of the fast-growing personal hygiene products market in Vietnam. Among the 10 most popular personal care brands in the country, Diana and Kotex hold a whopping 80 percent of the domestic market share. Unicharm, the Japanese company which owns the Diana brand, has been in Vietnam for 27 years. Diana brand products earned revenues of VND5 trillion ($218 million) in 2016, up 10.6 percent over 2015, for a net profit of VND819 billion ($35.7 million), making it the market leader by far. In second place is the Kotex brand, owned by the U.S. based Kimberly-Clark Corporation, which reported revenues of VND4.9 trillion ($214 million) in 2016, a year-on-year increase of 9 percent, for a net profit of VND485 billion ($21 million). With a large proportion of young people in its population of 93 million, both brands expect the … [Read more...] about Two foreign brands dominate personal hygiene market in Vietnam
Businesses allowed to declare products’ safety
Decree No 15, effective since February 2, 2018, dictates several changes, the most notable of which is giving firms the right to self-declare food-product origins and quality, replacing the long-standing method of keeping records at public management agencies. (Photo: VGP) Hanoi (VNA) - Food enterprises can now declare their products safe and hygienic, without having to apply for any official certification. Decree 15/2018/NĐ-CP was put into effect last month, with the food safety change one of its most significant parts. Under the decree, organisations and individuals producing and selling food will announce their product’s safety on multi-media, websites or at their offices themselves, instead of applying for food safety and hygiene certificates like before. Le Thi Thu, owner of an enterprise producing pork pies, spring rolls and sausages in Bien Hoa city, the southern province of Dong Nai, told Thanh Nien (Young People) newspaper that, to apply for the … [Read more...] about Businesses allowed to declare products’ safety
Finance Ministry proposes environmental tax hike
The Ministry of Finance has proposed raising environmental protection taxes on oil and petroleum products from the current VND3,000 (13 US cents) to the ceiling level of VND4,000 (17 cents) per litre beginning July 1, 2018. Accordingly, environmental protection taxes have been proposed to increase by VND500 per liter of diesel oil to VND2,000 and by VND1,100 per liter of other oil products to VND2,000. Plastic bags are also expected to see higher environmental taxes, rising from the current VND30,000 to VND50,000 per kilo, if the draft is approved. Last year, the ministry sought opinions about a draft law on the environmental protection tax hike to the highest level of VND8,000 per litre. The proposal faced fierce opposition from both the public and economists. In 2014, a similar hike was imposed, raising the taxes from VND1,000 to VND3,000, which the ministry referred to as a good way to stabilise the State budget. The ministry said that the tax hike was necessary because import taxes … [Read more...] about Finance Ministry proposes environmental tax hike
Opposition to tax on sweet drinks
HÀ NỘI — The Ministry of Finance is proposing to levy a special consumption tax of 10 per cent on sweet drinks to combat child - and adult - obesity rates, a problem worrying Government and health experts. However, many business people disagree with the proposal. The special consumption tax proposal for sweet drinks is a part of a ministry proposal to revise five tax laws, including a value-added tax (VAT), special consumption tax, corporate income tax, personal income tax, and natural resources protection tax. In August last year, the ministry issued a proposal to place excise tax on sweetened beverages. This time, the authority announced that the excise tax rate would be 10 per cent - in addition to 12 per cent VAT. This would mean that all sweetened beverages, regardless of whether they are soft drinks, tea, coffee or energy drinks, will be subject to the excise tax. However, dairy products will be excluded. The ministry’s first proposal three years ago … [Read more...] about Opposition to tax on sweet drinks
Mixed opinions with regard to the proposal imposing 10% excise taxes on sweetened beverages
The Hanoitimes - Under this draft proposal, the Ministry of Finance proposed to impose 10% excise tax on sweetened beverages, excluding dairy products as of 2019. Recently, the Ministry of Finance has completed second proposal to revise five tax laws, including the value-added tax (VAT) law, excise tax law, corporate tax law, personal income tax law, and royalties law. Sweetened beverages are expected to be under 10% of excise tax. On August 2017, the Ministry of Finance has issued the first proposal, in which for the first time sweetened beverages are subject to excise tax. This time, the authority clarified the excise tax rate for these products is of 10%, in addition to 12% of VAT. As such, all sweetened beverages, regardless of whether it is soft drinks, tea, coffee or energy drink will be under the imposition of excise tax, excluding dairy products. The Ministry of Finance referred to the current adult obesity rate in Vietnam accounted for 25% of the … [Read more...] about Mixed opinions with regard to the proposal imposing 10% excise taxes on sweetened beverages