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This chapter offers a breakdown of current regulations and guidelines, and covers the double-taxation agreement with the US and the new decree on transfer pricing released in February 2017. It also contains an interview with Dinh Thi Quynh Van, General Director, PwC Vietnam.

Occupying a unique position along the Pacific Ocean, Gulf of Thailand and Gulf of Tonkin, along with shared land borders with China, Laos and Cambodia, Vietnam is well-positioned to become a dominant regional transportation centre. Rapid trade, economic and population growth have made transportation upgrades a critical priority for Vietnam. Although many major planned projects face a funding gap which could hamper their timely implementation, recent reforms to the national public-private partnership framework have left the sector well-positioned to capture a larger share of private investment in the coming years. This will be especially critical for major planned highway and aviation projects, where rapid passenger growth has strained existing facilities, lending a sense of urgency to near-term development plans. This chapter contains interviews with Truong Quang Nghia, Minister of Transport; and Wong Heang Fine, Group CEO, Surbana Jurong.

Offering 3200 km of coastline and spectacular white sand beaches, mountainous highlands popular with adventure tourists and a vast array of cultural, historic and culinary attractions, Vietnam has seen its tourism sector become a major economic growth driver in recent years. The sector has recorded positive performances across the board, including international arrivals, domestic tourists, revenues, spending and investment, leading the government to increase earlier growth targets in 2016 as foreign arrivals reached record levels. Although a restrictive visa scheme continues to prevent Vietnam from reaching the same visitor numbers as its fellow ASEAN tourism competitors, government moves to add a growing number of countries to the visa waiver list could see the country catch up with – and even surpass – markets such as Thailand and Malaysia in the coming years.

With the shift towards a more market-orientated economy, Vietnam’s telecommunications market is seeing further openings for foreign investment, including the supply of telecoms services and the establishment of infrastructure networks. The government has, meanwhile, taken some broad steps in boosting competition in the marketplace by restructuring the state-owned Vietnam Posts and Telecommunications Group and paving the way for the introduction of 4G services, which is expected to generate a spike in new opportunities for investors. With a population of approximately 95m, Vietnam is an important regional market both for global technology vendors and for home-grown entrepreneurs. The latter are getting more encouragement to innovate as the country modernises and adopts international standards in areas such as communications infrastructure and education technologies. This chapter contains interviews with Tran Manh Hung, Chairman of the Member’s Council, Vietnam Posts & Telecommunications Group; and Truong Gia Binh, Chairman, FPT Corporation.

After a series of lacklustre years between 2011 and 2014, the construction market has picked up considerably and will expand on the back of increasing residential demand and infrastructure needs. A key factor that will drive demand for further housing construction is the amended Housing Law and the Law on Real Estate Business, both passed in 2014 to remove restrictions on foreign ownership of residential and commercial properties. Meanwhile, among the local population, a growing young and middle class is expected to push up demand for quality homes and investment-grade offices. This chapter contains an interview with Le Viet Hai, Chairman and General Director, Hoa Binh Construction Company.

The rollout of new free trade agreements gives Vietnam added possibilities to export its agricultural goods, but tapping these markets will require an enhancement of the sector’s sustainability. This effort is likely to involve the consolidation of smallholders, lack of which has so far prevented the country from transitioning into a key agricultural export player. Also on the agenda are food safety, environmental impact, increasing the export of high-end manufactured products, diversification and commercialisation of by-products. The government has put forth sector goals it wants to see accomplished by 2020 that involve drastic reforms in promoting science and technology for increasing productivity and development, and creating high-quality and competitive products, all while improving farmers’ livelihoods. This chapter contains an interview with Tiet Van Thanh, General Director, Vietnam Bank for Agriculture and Rural Development.