Vietnam Mulls Tax Relief for SMEs

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HANOI, Apr. 19 – The Vietnamese government is considering cutting corporate income taxes for small and medium-sized enterprises, Deputy Prime Minister Hoang Trund Hai said on Friday.

Speaking at an economic conference in Hanoi, the deputy PM said that the government had issued a resolution aimed at helping the country achieve its growth target of 6.5 percent in 2010.

Lending interest rates rose as much as 25 percent at times in 2009, making it difficult for local companies to get loans, leading to a surge in demand as supply for goods declined Vo Quoc Thang, the chairman of the Vietnam Young Business Association, said at the conference.

Tax relief for SMEs would come on the heels of a stimulus package in 2009 that helped bolster business during the Global Financial Crisis, but one that was “out of reach for 80 percent of businesses in rural areas,” according to Luu Duy Dan, chairman of the Vietnam Handicraft Villages Association.