HANOI, Nov 28. — Vietnam’s parliament on Wednesday decided to further extend a reduction in value-added tax (VAT) on goods and services until the end of June 2024.
The VAT cut to 8 per cent from 10 per cent, which has been in place since early 2022, was designed to boost domestic consumption and production as the Southeast Asian country’s export-driven economy faces headwinds from slowing global demand.
Vietnam’s exports in the year to November 15 fell 6.4 per cent from a year earlier to US$306 billion, government data released on Wednesday showed, as weak global demand continues to weigh on its shipments of products such as garments, smartphones and electronics.
Vietnam’s economic growth is estimated at 5 per cent this year, below an earlier government target of 6.5 per cent and slower than a low-base expansion of 8.02 per cent last year.
— Reuters
