Domestic Economy

Vietnam Calls for Stronger Trade Ties

Vietnam Calls for Stronger Trade TiesVietnam Calls for Stronger Trade Ties

Vietnam’s First Deputy Prime Minister Nguyen Xuan Phuc has expressed his country’s willingness to boost trade with Iran, in a meeting with the vice-chairman of Iran’s Majlis National Security and Foreign Policy Commission, Ahmad-Reza Dastgheib, who was heading an Iranian parliamentary delegation to Hanoi to participate in the 132nd assembly of Inter-Parliamentary Union (IPU), IRNA reported on Tuesday.

Referring to his official visit to Iran a year ago, the Vietnamese official said: “Agreements were reached between the two countries to advance political and economic relations. Given that the two countries already enjoy good political ties, the priority is to increase economic relations.”  

He further said the two countries have vast capacities to bolster economic cooperation, expressing hope that trade between Tehran and Hanoi would increase in the future. He went on to say that the two countries can increase cooperation in the field of agriculture.

The Iranian official said that the Majlis will review possible grounds for developing bilateral relations with Vietnam in various fields.

Dastgheib described last year’s official visit to Iran by the Vietnamese prime minister as a turning point in bilateral relations, saying that Tehran is ready to boost ties with Vietnam in all fields including agriculture and tourism.  

Referring to the ongoing turmoil in the Middle East, he stressed that the Islamic Republic’s policy is to maintain peace and stability in the region.

The 132nd Assembly of the Inter-Parliamentary Union took place in Hanoi, from March 28 to April 1, 2015. More than 120 parliamentary delegations from around the world took part in the event. The assembly is the principal statutory body that expresses the views of the Inter-Parliamentary Union on political issues. It brings together parliamentarians to study international problems and make recommendations for action.

During the five-day visit to Vietnam, the Iranian delegation met with the members of Vietnam-Iran Parliamentary Friendship Group as well as other high ranking parliamentary officials from the East Asian country.

  Tax Treaty

According to the Vietnam News Agency (VNA), the government of Vietnam recently approved a tax treaty with Iran, according to which the Iranian side will be exempt from double taxation mechanism.

As of July 15, 2014, Vietnam had tax treaties with 69 countries and territories across the globe. Residents in participating nations will be taxed at a reduced rate, or are exempt from Vietnamese taxes on income they receive from Vietnamese sources. The reduced rates and exemptions vary among different countries. Meanwhile, Vietnamese residents and citizens are taxed at a lower rate or are exempt from foreign taxes on income they receive from other countries.

The treaties also establish legal frameworks that help taxation agencies prevent tax evasion.

  Aim for $500m Trade

Iran and Vietnam have planned to increase the value of their bilateral trade to $500 million. Trade between the two countries increased from $30 million in 2003 to nearly $165 million in 2009. As of 2011, the trade between the two countries reached $316 million with officials from both countries hoping that the amount will significantly increase in the years to come.  

Figs, pistachios, oil and petrochemical products are the main exports from Iran to Vietnam. Fish, black and green tea, computer parts, and packaging machinery are among the main exports from Vietnam to Iran.