Large companies in Vietnam, mostly in the construction, automobile and cement industries, are also struggling like their smaller counterparts in the prevailing tough economic conditions, a financial expert says.
Corporate tax payments of many large companies fell sharply in the first quarter from the same period last year, Vu Nhu Thang, director of the finance ministry’s National Institute for Finance, said in an interview published by the Dau Tu (Investment) newspaper Monday.
He said the state-run Vietnam Industry Construction Group saw its corporate tax payment drop by 81 percent while many other companies, including fuel distributor Petrolimex, the Vietnam Rubber Group and Honda also registered declines of between 31 and 49 percent.
Thang said based on their performances, local businesses should be provided with greater support by the government.
The government had last week announced a plan to cut corporate income tax for small- and medium-sized companies and labour-intensive enterprises by 30 percent. All businesses will be allowed to delay value-added tax payments on sales in April, May and June by six months, it had said.
Thang said the decision to extend the VAT payment deadlines will benefit many companies since it affects all businesses that have sales, not just tSTC making profits.