Speaking to welcome the conference, Mr. Nguyen Van Danh emphasized that the Conference was a very meaningful and practical activity to enhance the image of Binh Duong's competitiveness in the national development strategy and adapt to the impact of the global minimum tax rate.

Over the past years, Binh Duong has become a "bright spot" of the Southern Key Economic Region. With a favorable geographical location adjacent to Ho Chi Minh City, near the airport and international seaport, Binh Duong has promoted local potential and advantages, especially creativity in linking infrastructure construction with urban development. Therefore, the province has been always considered as one of the leading provinces and cities in Viet Nam in terms of socio-economic development and FDI attraction speed. The province's gross regional domestic product (GRDP) always achieves a fairly high growth rate compared to the average growth rate of the country. The province's economic structure has shifted positively towards gradually increasing the proportion of services and industry.

Overview of the conference

Binh Duong prioritizes attracting investment in projects that use advanced technology, clean technology, modern management, have high value, have spillover effects, connect global production, and supply chains. At the same time, the province has an important level of connection, attraction, and technology transfer from the foreign investment sector to the domestic investment sector. Thereby, contributing to improving domestic added value and competitiveness of Vietnamese products in the global value chain. Binh Duong is developing an innovation region strategy to attract science, technology, and innovation in Binh Duong.

On November 29, 2023, the National Assembly passed a Resolution on the application of additional corporate income tax according to regulations to prevent global tax base erosion with 93.52% of National Assembly deputies voting in favor, officially effective from January 01, 2024. In addition, Binh Duong province is the pioneer and first locality to coordinate with the Institute for Policy Management and Development Strategies of Viet Nam Union of Science and Technology Associations to coordinate research and synchronous surveys of FDI enterprises in areas affected by the global minimum tax rate, and provide forecasts on policy roadmaps, as well as recommendations, so that when the Resolution is issued, the province will make timely moves to maintain proactiveness in managing local investment attraction policies.

At the conference, delegates shared information related to global minimum tax rate and FDI attraction, experiences in connecting and sharing data between ministries, branches and localities to provide public services to enterprises, to remove difficulties for individuals, organizations and enterprises to restore production and business activities; understanding the situation and market developments, supporting enterprises in exporting goods.

Mr. Pham Trong Nhan - Director of the Department of Planning and Investment said that the promulgation of global minimum tax rate regulations will not have too many negative effects on attracting FDI in the near future for Viet Nam in general and for Binh Duong in particular.

Signing a strategic cooperation agreement between the Institute for Policy Management, Binh Duong Department of Planning and Investment and Becamex IDC Corp

According to OECD statistics, there are currently 81 countries and territories with corporate income tax rates above 15%; 10 countries and territories have corporate income tax rates equal to 15% and 23 countries and territories have corporate income tax rates lower than 15%.

Thus, the overall picture of corporate income tax rates globally shows that there are not many countries and territories applying tax rates below 15%, compared to countries and territories applying taxes above 15%. From this fact, it can be extrapolated that over the past time, many multinational corporations have been subject to corporate income tax rates of 15% or more. However, this has not reduced the flow of foreign investment capital nor narrowed the production and business activities of corporations.

For Binh Duong, which is considered the industrial capital of the country, there are currently more than 4,000 FDI enterprises, however only about 44 FDI enterprises are likely to be affected by the Viet Nam Resolution officially imposing the global minimum tax rate and in case this Resolution is applied, the state budget increases by about 2,000 billion per year. Enterprises with a turnover of less than 750 million Euro will not be affected by the Resolution and continue to enjoy investment incentives at the current preferential tax rates.

Mr. Pham Trong Nhan emphasized that in the coming time, the Department of Planning and Investment will continue to have more motivation and steps, along with other plans to better advise the province. The Department will continue to accompany the enterprise community, promptly solve internal difficulties as well as regularly and continuously listen to feedback and suggestions, thereby synthesizing and proposing policies to continue to enhance the province's position in the region and the world, as a place for investors to feel secure in continuing to expand production and also the top choice of investors when coming to Viet Nam to explore business cooperation.