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    Vietnamese Enterprises "Go Far" And Import Raw Materials From Overseas

    2014/10/24 13:04:00 24

    VietnamRaw MaterialsClothing Company

     

      

     

       Vietnam? The government encourages local enterprises to purchase raw materials needed for production locally. However, because of its unreasonable tax policy, Vietnam's enterprises imported from abroad to produce raw materials and manufactured products than from Vietnam. Raw material Making products is cheaper. Vietnamese enterprises are more willing to use imported raw materials for production.

    According to the October 22nd report, Nguyen An, general manager of Vietnam Garmex Saigon, said in an interview that if Vietnamese enterprises used imported raw materials to process finished products, they could export the finished products to other countries by FOB (FOB) and enjoy a 275 day grace period.

    But for Garmex Saigon, this is not the most advantageous way. Because in this way, Garmex Saigon has to go through complicated procedures to get tax rebates.

    Garmex Saigon prefers to purchase raw materials in a traditional way, and immediately pay VAT at delivery time so as to get raw materials needed for production on time and avoid delays in production schedules.

    After completing the export of finished products, Garmex can get export rebates according to the process.

    Another family Clothing company It is also much easier to purchase imported raw materials than to purchase domestic raw materials. Although the purchase of domestic materials can get a high value-added tax rebate, enterprises often have to wait a long time to get the tax rebate.

    A Vietnamese lawyer said that the 275 day tax grace period for imported raw materials was obviously reasonable, because Vietnam could not provide all kinds of raw materials needed for clothing production, and Vietnam's clothing enterprises mostly cooperate with foreign enterprises to do OEM for foreign enterprises, and the raw materials purchased generally had to be imported from abroad according to the requirements of foreign enterprises. However, imported raw materials can enjoy preferential conditions, while domestic raw materials can not, which is not conducive to domestic raw materials purchased by enterprises for production.

    This unreasonable tax policy can also be seen in other commercial areas. For example, in the middle of 2013, the government imposed a zero tariff policy on mobile phones imported from the whole machine, while 70% of the imported mobile phone parts and mobile accessories were subject to 25%-30% tax.

    Under such a tax policy, enterprises are inclined to import mobile phones directly to Vietnam for sale, instead of importing parts and accessories from abroad to Vietnam and then selling them in Vietnam. This is obviously not conducive to the local employment in Vietnam, nor is it conducive to the improvement of Vietnam's manufacturing capacity. Then, by the end of 2013, Vietnam's Ministry of Finance adjusted the import tariff policy. Only about half of the imported imported spare parts and accessories were exempt from customs duties.

    The lawyer repeatedly stressed that the import of CBU products was exempt from customs duties, but the tax policy on import of spare parts and accessories was unfavorable for Vietnam's development. Sony Corp, for example, opted to stop producing TV kinescope in Vietnam under such unreasonable tax policy, but imported TV directly from Vietnam to Vietnam, because the tariff of finished TV set is much lower than that of TV parts and accessories.

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