Consumers gain most from FTA tax reforms

Created 13 September 2018
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While the state budget and domestic producers can suffer from lower import taxes, consumers will benefit handsomely, economists say.
Consumers gain most from FTA tax reforms

After studying business reports of six different industries from 2014 to 2017, Le Thi Kim Chung, economics professor with the Thang Long University, noted that the state budget lost $1.5 billion from 2017 tax reforms, while enterprises lost about $1.3 billion and fired 35,230 workers.

On the other hand, consumers benefited the most, with a combined surplus of nearly $2.9 billion and a social offset of more than $8.5 million, a VCCI release said, citing the professor’s research findings.

In order to cope with the negative impacts of Free Trade Agreements (FTAs), Kim Chung said that businesses have to increase the quantity and quality of products to compete with imports, business owners need to improve their management level and deploy appropriate business strategies.

The release also quoted experts as saying listed joint stock companies should prioritize sustainable growth since it would improving the company’s financial performance. It said researchers at Thang Long University have found a strong linkage between a company’s sustainable growth and financial efficiency.

Chu Thi Thu Thuy, one of the research authors, said stock market companies in Vietnam should focus on determining their sustainable growth rate and find specific solutions to maintain and improve the financial performance of the company.

The views were expressed at a conference titled “Assisting Vietnamese businesses with increased access to credit through improving governance and financial transparency” held at the Thang Long University in Hanoi on September 9.

The conference was jointly organized by VCCI, Thang Long University, and the NTB Traffic Construction Company.

Source: VNE

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