Vietnam mulls corporate tax cut to lure investors

Hanoi, June 28: The Finance Ministry is considering cutting corporate income tax to 25 percent from 28 percent to attract more foreign direct investment to Vietnam, state-run media reported on Thursday.

The Vietnam News quoted Deputy Finance Minister Truong Chi Trung as saying ''the reduction will probably happen this year'' to bring Vietnam in line with other countries in the region.

Worldwide, corporate tax averages between 20 percent and 25 percent.

Separately, officials said foreign direct investment commitments was expected to reach .2 billion in the first six months of this year, an increase of 8 percent from the same period last year.

Companies from Singapore, South Korea and India were the main investors, the Foreign Investment Agency said.

Reuters>