Vietnam finance ministry mulls more tax breaks as economy slows

Vietnam’s Ministry of Finance is considering giving more tax breaks to businesses as the number of closures has surged amid the slowing economy.

Proposals for more tax relief are expected to be submitted to the National Assembly, the country’s legislative body, during its upcoming session next month, the website VnExpress reported Thursday, citing Finance Minister Vuong Dinh Hue.

“Our view is that all resources have to be focused on supporting businesses, but the support has to be given to the right ones,” Hue said.

Vietnam has already extended the deadline to pay corporate taxes for local companies through July, according to VnExpress.

At least 11,900 companies shut down or halted operations in the first quarter, an increase of 6 percent over the same period last year, government data showed. The economy expanded 4 percent in the first three months of this year – the slowest first quarter growth since 2009.

Hue said his ministry will review the financial condition of local companies again before making any decisions on issuing further tax breaks.

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