Retaining key personnel has always been a company’s prerequisite policy paving the way to prosperity. Employee Stock Ownership Plan (ESOP) has long been considered a good management tool and compensation benefit for the retention of human capital, as well as a good solution for those companies with limited cash flow. While ESOP is not a new term, its important tax implications have been continuously provoking controversy. This report investigates the Personal Income Tax (PIT)’s exposure under ESOP schemes, which provide beneficiaries a better understanding and thus the ability to minimise tax risks. Grant Thornton Vietnam provides insights into the tax side of ESOP Employee Stock Ownership Plan (ESOP) ESOP can simply be understood as employees’ benefit plan with agreed terms and conditions. An employee stock ownership is defined as an allocation of shares that will be granted to specified employees in the future, prevalently in the form of shares options … [Read more...] about Employee shares ownership plan and tax implications in Vietnam
How to buy and sell shares in stock market
Tight monetary policy not likely to have major impact on property, securities: analysts
Many analysts have expressed concern that restricting loans to high-risk sectors such as real estate, securities and consumption could slow down economic growth, especially banking and the targeted sectors. — Photo dantri.com.vn The State Bank of Viet Nam has shown it is determined to continue with a tight monetary policy for the rest of the year with its decision to refuse to increase bank’s credit limits to constrain inflation and strictly control lending to high-risk sectors. Many analysts have expressed concern that restricting loans to high-risk sectors such as real estate, securities and consumption could slow down economic growth, especially banking and the targeted sectors. Using data from the Ho Chi Minh City Securities Corporation, they said in the first half of the year, the 13 listed banks’ pre-tax profits increased by 52.8 per cent and credit by 9.4 per cent year-on-year. However, in the third quarter, their profit growth decelerated as credit growth … [Read more...] about Tight monetary policy not likely to have major impact on property, securities: analysts
Apple breaches $1 trillion stock market valuation
The tech company’s stock jumped 2.9 percent to end the day at $207.39, giving it a market capitalization of $1.002 trillion. During the session, Apple’s stock market value reached as much as $1.006 trillion. Apple has rallied about 9 percent since Tuesday, when it reported June-quarter results above expectations and said it bought back $20 billion of its own shares. It was Apple’s best-two-day run since April 2014. Started in the garage of co-founder Steve Jobs in 1976, Apple has pushed its revenue beyond the economic outputs of Portugal, New Zealand and other countries. Along the way, it has changed how consumers connect with one another and how businesses conduct daily commerce. Apple’s stock market value is greater than the combined capitalization of Exxon Mobil, Procter & Gamble and AT&T. It now accounts for 4 percent of the S&P 500. The Silicon Valley stalwart’s stock has surged more than 50,000 percent since its 1980 initial public … [Read more...] about Apple breaches $1 trillion stock market valuation
BUSINESS IN BRIEF 4/5
HCM City to get high-quality farm products from Long An Agricultural businesses in the Mekong Delta province of Long An are looking at ways to increase supplies of their products to Ho Chi Minh City, the largest economic centre in the southern region. Nguyen Ngoc Hoa, Deputy Director of HCM City’s Department of Industry and Trade, said that buying and selling was being done through modern distribution channels as well as traditional markets. Safe food, traceability of product origin, and post-harvest preservation are all important parts of today’s agricultural production process. However, there are only a few enterprises and cooperatives from Long An province that can satisfy these conditions. If enterprises and cooperatives from Long An met these conditions, they could become key suppliers to HCM City over the long term, according to Hoa. At the meeting between officials from HCM City and Long An province last week, representatives of Long An province’s enterprises … [Read more...] about BUSINESS IN BRIEF 4/5
BUSINESS IN BRIEF 16/4
Poultry breeding heats up again General manager CP Vietnam Montri Suwanposri said that Vietnam’s poultry prices are closer with prices of other countries; accordingly, CP Vietnam will sell chicken to Japan after finishing paper works as per the partners’ requirement. Montri Suwanposri added that C.P in Thailand is the leading firm exporting chicken meat to Japan for years with the quantity of five million a week. There has been an increase in poutry meat orders lately because many countries banned import chicken from Brazil , an exporter of chicken to Japan, after food safety scandal. These countries switched to import chicken meat from Asian countries especially Thailand. At present, prices of poultry in hi-tech farms in Vietnam is similar to chicken prices in other Asian countries, accordingly, C.P Thailand will share its orders with Vietnamese firms and C.P Vietnam has planned to sell chicken meat to Japan in 2019. In 2017, Vietnam’s livestock sector marked its … [Read more...] about BUSINESS IN BRIEF 16/4
Think beyond cash and property for your assets
Viet Nam News By Brian Spence* Many Vietnamese prefer to keep the bulk of their wealth in physical cash or property, but there are numerous reasons why investing in a more diversified portfolio of investments is a safer and more lucrative option. Việt Nam has a solid savings culture, which as a financial adviser is always gratifying to see. But I cannot help but be alarmed by the large proportion of individuals who seem to be keeping much of their wealth in physical cash. Not only does having bundles of bank notes stashed away leave you vulnerable to theft, fire or other disasters, it also means you risk your wealth being eroded over time. Furthermore, significant cash holdings mean you are probably missing out on much more attractive returns. Those holding large amounts of cash often have to spend money to keep it safe. At the upper end of wealth, this might mean guards and vaults, and at the lower, other storage methods like safe deposit boxes. What you might not realise, … [Read more...] about Think beyond cash and property for your assets
South Korean banks entering Vietnam in wake of FDI surge
In the wake of the massive FDI influx from South Korea, the country’s banks are venturing further into Vietnam’s promising financial market, Photo: Le Toan Banks see the potential The domestic economy has grown tremendously over the past few years, with South Korean direct investment in 2017 standing at $3.97 billion in registered capital, second only to Japan, according to the General Statistics Office. As a logical consequence, South Korean financial institutions have increasingly gained footholds in Vietnam to cater to the financial needs of foreign direct investment (FDI) businesses and investors. Nine banks including two local corporations and seven branches or representative offices, five securities firms, two leasing companies, and three finance companies from South Korea have so far joined the local banking and finance landscape. The past year saw an upturn in the presence and operation of South Korean financial institutions in Vietnam, evident in wholly … [Read more...] about South Korean banks entering Vietnam in wake of FDI surge
Late buying sends market up
Late buying sends market upBy Phuong Thao - The Saigon Times DailyHCMC – Despite losses in early trade, the stock market staged a rebound on Thursday given surging demand in the last 30 minutes of trading, putting an end to a three-day fall. The VN-Index gained 3.1 points, or 0.75%, from the session earlier to close at 413.83. The market opened just in the black but then dropped back to hit a low of 408.43 before rebounding to where it started by the end of the morning session. In the afternoon, trading saw a move to the upside and then a strong finish at the highs.Liquidity improved but was still low compared to the three-week average of VND800 billion and over VND1 trillion per day a month earlier. On the Hochiminh Stock Exchange (HOSE), trading increased by 14% in volume and 30.7% in value to 31.5 million shares worth VND463.8 billion.Advancers outnumbered laggards by more than two-fold with 38 tickers hitting limit-up. Heavyweights VCB, BVH and SSI together contributed 1.38 … [Read more...] about Late buying sends market up
BUSINESS IN BRIEF 9/1
Vingroup, T&T to develop urban railway projects in HanoiThe government of Hanoi City has proposed the Prime Minister allow Vingroup and T&T Group to develop three urban railway projects which the city plans to complete by 2025, Tuoi Tre newspaper reports.The two domestic investors will use their capital to make pre-feasibility studies for these projects.When the projects were announced, many investors expressed interest in Hanoi. However, only Vingroup and T&T Group have registered to take part.Both of them proposed implementing the projects in the build-transfer (BT) format. Particularly, Vingroup registered to build the 38.4-kilometer metro line No. 5 which connects Van Cao and Hoa Lac and metro line No. 2 from Tran Hung Dao to Thuong Dinh with a length of 5.9 kilometers. Meanwhile, T&T Group is keen on metro line No. 4 connecting Me Linh, Sai Dong and Lien Ha, and measuring 54 kilometers in length.The two investors said they would use their own finances to study the … [Read more...] about BUSINESS IN BRIEF 9/1
HDBank shares surge on market debut
HCM CITY — Around 981 million shares of HDBank listed on the HCM City Stock Exchange on Thursday at VNĐ33,000 (US$1.46). After the listing, HDBank, or HCM City Development Bank as it is formally known, has become one of the 20 heavyweights on the southern bourse with a market capitalisation of $1.43 billion. Soon after opening, HDB soared 17 per cent to VNĐ38,600, not too far from the daily ceiling of 20 per cent. It went on to hit the ceiling, closing at VNĐ39,600. The volume topped 32.3 million shares, with foreign investors buying more than 5 million. Earlier the bank had raised more than $300 million by selling a 21.5 per cent stake to foreign investors. Foreigners can buy another 8.5 per cent to reach the maximum permitted 30 per cent whereas in many other listed banks the limit has already been reached. HDBank is the first bank to go public in 2018 and the eighth lender to list on HoSE. Fred Burke, managing partner of Baker & McKenzie Law Firm -- … [Read more...] about HDBank shares surge on market debut