VCN – The General Department of Taxation has sent an announcement to Tax Departments in order to inform them about the Agreement of Avoidance of Double Taxation between Vietnam and Cambodia, which is officially valid.
|Vietnam is currently Cambodia's third largest trading partner among more than 140 countries and territories that have trade relations with the country.|
Accordingly, the Agreement of Avoidance of Double Taxation between Vietnam and Cambodia, signed in Hanoi on 31 March 2018, is valid from 20 February 2019.
According to the General Department of Taxation, in recent years, the friendly cooperation between Vietnam and Cambodia has witnessed comprehensive development, while economic cooperation between the two countries has been growing steadily.
Vietnam has 190 projects invested in Cambodia, with total registered investment capital of US$2.89 billion focusing mainly on agriculture and the forestry sector. As of March 20, 2019, Cambodia has 19 projects with total investment of US$62.67 million, ranking 56th among 131 countries and territories investing in Vietnam and ranking 8th among ASEAN countries invest in Vietnam.
Regarding the cooperation in the banking sector between Vietnam and Cambodia, there are currently 5 Vietnamese banks operating in Cambodia – BIDC (a subsidiary of BIDV), Saigon Thuong Tin Bank (Sacombank), Vietnam Bank for Agriculture and Rural Development (Agribank), Military Bank (MB) and Saigon - Hanoi Commercial Bank (SHB) – with 15 branches and turnover of about US$1 billion.
Furthermore, the financial and banking cooperation activities between the two countries have developed rapidly in scale, scope, products and services, contributing positively to the socio-economic development of each country.
In the Cambodian market, Vietnamese banks target customers including overseas Vietnamese enterprises, Vietnamese employees working at organizations, small and medium enterprises, among others.
In Vietnam, the Bank for Investment and Development of Cambodia (BIDC) has a branch in Hanoi and a branch in Ho Chi Minh City. The branches have recorded good business results and comply with Vietnamese laws.
With the potential to expand the export of Vietnamese goods to Cambodia as well as the investment prospects of businesses to partner countries, the General Department of Taxation expects the Taxation Agreement between the two countries could enhance Vietnam-Cambodia economic and investment relations through the creation of a clear and stable tax-legal environment for Cambodian and Vietnamese investors in order to conduct business activities.
By Thùy Linh/Thanh Thuy