Vietnam to Extend VAT Cut Until June to Boost Consumption Amid Sluggish Global Economy

• Vietnam plans to extend the VAT rate cut until June 2024
• The rate cut, from 10% to 8%, aims to boost domestic consumption and production
• The extension still needs parliamentary approval
• The 8% rate does not apply to certain services and products
• The cut is expected to reduce the government’s budget revenue by $1.02 billion
• Vietnam’s economic growth rose 5.33% in the third quarter
• Headline inflation has been increasing since June
• Domestic consumption and credit growth remain subdued
• Retail sales in Vietnam rose 9.7% in the first nine months of the year.

Source: asia.nikkei.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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