Personal Income Tax Calculation for Real Estate Transactions

Key pointsThe tax authorities in Hanoi have announced the calculation method for personal income tax on real estate transfers. A tax rate of 2% is applied to the transfer price, with exemptions available under certain conditions, including the transfer of a primary residence or property between relatives.
Business impactJapanese companies need to understand the tax risks when employees buy or sell real estate and provide appropriate advice. Particularly, by understanding the exemption conditions, they can help reduce the burden on employees.

Key pointsThe Ho Chi Minh City Tax Office is a national leader in processing value-added tax refunds, handling 29% of refund decisions swiftly through administrative reforms and digitalization. A meeting was held on August 25 to address procedural obstacles and enhance liquidity for businesses. This will enable companies to quickly access reinvestment funds.
Business impactJapanese companies can leverage the expedited refund procedures in Ho Chi Minh City to improve cash flow. In particular, businesses receiving value-added tax refunds should strengthen communication with the tax office to facilitate smoother processes.

Key pointsVietnam's Vietcombank has announced a preferential interest rate program for homebuyers, offering 20 trillion VND in loans at an annual rate of 1%. This program applies to already approved real estate projects, making financing more accessible for many prospective homebuyers.
Business impactThis preferential rate program will help reduce housing costs for employees of Japanese companies. HR departments may find it valuable to utilize this information and consider housing assistance programs for employees.

Key pointsHo Chi Minh City's new development space is bringing dramatic changes to its urban structure, forming new growth poles. The vast urban area of approximately 6,700 square kilometers is home to over 14 million people, and it is expected to leverage its strengths as a center for high-tech production, international deep-sea ports, regional logistics systems, and financial services. The establishment of new urban development laws calls for innovative policies to promote urban growth.
Business impactJapanese companies need to consider regional infrastructure development and the introduction of new business models to capture the new growth opportunities in Ho Chi Minh City. In particular, businesses related to logistics and high-tech industries are expected to see future growth, necessitating early strategic investments.

Key pointsPVFCCo (Phu My, HOSE: DPM) is advancing energy savings, efficient resource use, standardization of greenhouse gas inventory management, and the development of green-oriented products, with the 'E' in ESG becoming part of long-term production management and strategy. Specifically, they are building an energy management process based on ISO 50001:2018 and optimizing a cooling water system to save approximately 7 million kWh of electricity annually. Additionally, they began greenhouse gas inventory management in 2022, aiming for a 3% reduction in emissions by 2030 based on 2022 levels. This establishes a sustainable production system and reduces environmental impact.
Business impactFor Japanese companies, PVFCCo's initiatives serve as a reference for responding to strengthened environmental regulations. In particular, energy management and greenhouse gas management will become crucial elements in future business strategies, necessitating relevant departments to reconsider their strategies in light of these standards.

Key pointsIn An Giang Province, promotional activities for investment, trade, and tourism are becoming more active, with efforts to expand the market in collaboration with businesses. This initiative contributes to the development of the local economy, particularly strengthening partnerships with international collaborators.
Business impactFor Japanese companies, promotional activities in An Giang Province present new business opportunities. It is crucial to focus on expanding the local market and building partnerships.

Key pointsBusinesses in Dong Nai Province are requesting adjustments to the truck ban hours on Dong Khoi Street, and the provincial city hall has forwarded this request to the police. The new ban hours aim to ensure traffic safety by restricting truck access, but may impact business operations.
Business impactThis adjustment of ban hours is a significant issue for Japanese companies engaged in logistics and manufacturing. Companies need to assess the impact of the changes on their operations and revise transportation plans as necessary.

Key pointsVietjet has begun early sales of 3.1 million tickets for Tet (Lunar New Year) 2027, covering all domestic and international routes from January 22 to February 20, 2027. This initiative aims to meet the demand for travel and tourism, particularly during the high-demand period.
Business impactFor Japanese companies, Vietjet's ticket sales indicate a rising travel demand in the Vietnamese market. This increase presents opportunities for the tourism industry and related businesses, prompting travel-related operators to monitor this trend closely.

Key pointsHo Chi Minh City has announced a new proposal to manage vehicle emissions. Starting from July 2027, a Low Emission Zone (LEZ) will be established in the city center, restricting the entry of gasoline vehicles. The first phase will cover 930 hectares, including the central area and Thu Thiem district, with public transport coverage reaching approximately 95.91%. A second phase of broader restrictions is planned to begin in 2029, with the ultimate goal of transitioning most vehicles to electric or clean energy by 2035.
Business impactThis policy may impact logistics and commuting for Japanese companies. In particular, businesses using gasoline vehicles will need to urgently consider transitioning to electric vehicles. With the strengthening of environmental regulations, sustainable operations will be required.

Key pointsDa Nang City has a coastline of approximately 228 km and is advancing the development of a sustainable marine economy utilizing its rich marine resources. The city aims to connect tourism and the marine economy, striving for a balance between environmental protection and economic growth. Notably, there is a shift from fishing to tourism, contributing to the improvement of local residents' livelihoods.
Business impactJapanese companies should monitor this trend and assess its impact on related transactions, contracts, and local operations.