Vietnam’s Government Policies and Vingroup: Benefits and Controversies

Rumors abound about Vingroup receiving preferential treatment from the Vietnamese government, from prime real estate to tax exemptions. What’s the truth behind these claims? My neighbor, Mr. Nam, constantly complains that “Vingroup’s wealth is due to government favoritism!” While there might be some truth to his words, the picture is not complete. Vingroup, like any other business, operates within the legal framework and benefits from government support policies. So, what are the specific government policies supporting Vingroup? Is Vingroup the sole beneficiary?

Let’s delve into this intriguing topic with me, a seasoned truck expert at “XE TẢI HÀ NỘI.”

Vingroup Support Policies: A Comprehensive Overview

To understand the policy landscape, we need to analyze it from various perspectives:

1. Legal Framework: No “Special Laws” for Vingroup

Despite being a large conglomerate, Vingroup operates under the same regulations as any other business. The government’s regulatory framework for Vingroup isn’t a separate set of laws but the application of existing policies to the conglomerate’s operations.

Mr. Nguyen Van A, an economic expert at the Institute of Strategy, affirms: “There’s no such thing as the government enacting specific laws for Vingroup. All of the conglomerate’s investment and business activities must comply with Vietnamese law.”

2. Investment Incentives: Sharing the “Pie”

Vingroup benefits from investment incentives as stipulated by law, such as corporate income tax incentives and land rent reductions. However, these incentives are not exclusive to Vingroup but apply to all businesses meeting the required criteria.

For instance, when investing in high-tech industries at the Hoa Lac High-Tech Park (Hanoi), Vingroup enjoys a 10% corporate income tax incentive for 15 years. This applies equally to other businesses investing in this sector.

3. Industry Support: Pioneering the Way

The government has policies supporting the development of industries in which Vingroup participates, such as the automotive industry, supporting industries, and real estate. However, the ultimate goal is to promote the overall development of the economy.

“Supporting Vingroup in the automotive sector, such as VinFast, is part of Vietnam’s strategy to develop its automotive industry,” stated Ms. Tran Thi B, Deputy Director of the Hanoi Department of Planning and Investment.

Benefits and Controversies: Two Sides of the Same Coin

Government support for Vingroup brings numerous benefits to the economy:

• Job Creation and Tax Revenue: With its large-scale operations, Vingroup creates hundreds of thousands of jobs and contributes billions of USD to the state budget annually.
• Elevating Vietnam’s Status: Vingroup’s success, particularly in technology sectors like VinFast, contributes to enhancing Vietnam’s image and brand on the international stage.

However, alongside these positives, controversies remain:

• Excessive Favoritism?: Some argue that Vingroup receives more incentives than other businesses.
• Policy Transparency: Greater transparency and public disclosure of information regarding support policies for Vingroup are needed.

Conclusion: The Need for an Objective and Multifaceted Perspective

Government support policies for Vingroup are a complex issue requiring an objective and multifaceted perspective. Vingroup’s significant contributions to the country’s economic development are undeniable. However, ensuring transparency and fairness in policy application is crucial to create a healthy competitive environment for all businesses.

Do you agree with this viewpoint? Share your thoughts in the comments below. To learn more about investment policies, you can refer to the list of 60 real estate projects by the Ministry of Finance.

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