Tax Authority Explains Cases of Tax Arrears Notifications Post Refund

Key pointsThe Ministry of Science and Technology of Vietnam has sent a document to the Ministry of Industry and Trade requesting that EVN (Vietnam Electricity) standardize electricity rates for data centers. Electricity costs account for over 50% of the operational expenses of data centers, and in Ho Chi Minh City, businesses are burdened by commercial electricity rates. The Ministry is calling for the application of production electricity rates nationwide to ensure stable power supply, which is expected to stabilize data center operations and contribute to economic development.
Business impactJapanese companies need to be cautious of fluctuations in electricity rates as the operational costs of data centers rise. In particular, businesses based in Ho Chi Minh City must implement measures to ensure the stability of their power supply.

Key pointsThe tax authority in Vietnam explained that there are cases where individuals receive notifications of tax arrears months after receiving personal income tax refunds. This can occur if the payment agency modifies the tax declaration. For instance, a refund initially set at 10 dong may be reduced to 8 dong after correction, requiring the taxpayer to pay the difference. The tax authority recommends that taxpayers contact them directly if they have questions.
Business impactJapanese companies need to be aware that information from payment agencies may change during tax declarations and must thoroughly verify tax amounts. It is particularly important to consider response strategies in advance for cases where a tax arrears notification is received after a refund.

Key pointsAs expectations for an FRB rate hike strengthen, Vietnamese experts predict that the dollar/dong exchange rate will fluctuate within a range of 1-2% annually. The stability of foreign currency supply and interest rate differentials are seen as supporting factors for the exchange rate, with limited risk of sharp currency depreciation. For investors, exchange rate stability is a crucial indicator, with FDI inflows and trade balance trends analyzed as factors supporting foreign currency supply.
Business impactFor Japanese companies, exchange rate stability enhances supply chain management and the accuracy of cost forecasting. Particularly in the manufacturing and logistics sectors, a stable exchange rate environment may contribute positively to performance outlooks.

Key pointsSPX Express is expanding its national service network and developing large-scale sorting infrastructure. This aims to provide convenient and accessible transportation solutions for businesses and users. The logistics market is growing annually, and the government has announced plans to promote the growth of the logistics industry from 2025 to 2035. SPX is advancing the establishment of large automated sorting centers in the north and south.
Business impactJapanese companies should leverage the expansion of logistics services like SPX to build efficient supply chains, particularly focusing on optimizing logistics costs.

Key pointsFamilyMart has simultaneously opened 7 stores in Hanoi, providing a new convenient hub. The opening event featured a music stage and tasting sessions, attracting many visitors. FamilyMart plans to establish 20 stores in Hanoi by 2026 and expand by an additional 300 stores over the next five years.
Business impactThis expansion will enhance competitiveness in the Hanoi market and suggests new business model possibilities within Japan's retail industry. There is a need for rapid responses, especially as services focusing on urban convenience are increasingly demanded.

Key pointsVietnam's average lending rate has risen to 10.7%. This increase is influenced by competition in raising deposit rates, directly affecting corporate financing costs. Rising interest rates are a crucial indicator for economic growth as they directly impact corporate investment willingness and consumer loan burdens.
Business impactJapanese companies need to reconsider their funding plans in light of rising financing costs. Companies borrowing locally must closely monitor interest rate trends and implement appropriate measures.

Key pointsSaigon (Ho Chi Minh City) has a history of over 300 years closely tied to water. From old ports and docks to modern urban spaces, the Saigon River is a crucial element in shaping the city's landscape. Urban planning up to 2040 positions the Saigon River at the center of development, with improvements to public spaces and green areas underway, strengthening the connection between the city and nature.
Business impactJapanese companies have the opportunity to participate in development projects around the Saigon River, contributing to regional infrastructure and tourism growth. Building sustainable business models is essential, especially as environmentally conscious development is increasingly required.