Fdi

HCMC pledges to facilitate enterprises to increase value in SHTP ảnh 1

Mr. Phan Van Mai, Chairman of the HCMC People’s Committee (R) talks with investors. (Photo: SGGP)

At the conference, Mr. Phan Van Mai, Chairman of the HCMC People’s Committee, said that the city wants to listen to the opinions of investors, including their proposals, for authorities to prepare the legal frameworks, orientations, and conditions for enterprises to develop in the future.

“Besides attracting new investments, we also need to restructure existing ones. The city is responsible for creating the space, legal framework, and conditions to support enterprises to increase the value of projects,” Mr. Phan Van Mai emphasized.

Since its establishment in 2002, SHTP Management Board has granted investment registration certificates to 163 projects, with a total investment capital of over US$12 billion. Of which, FDI capital is over $10.1 billion, and domestic capital is over $1.96 billion. The accumulated total value of high-tech production of the SHTP is estimated at $120.307 billion, with export value at $112.024 billion and import value at $105.299 billion. Up to now, SHTP has formed strong ecosystems in the fields of electronics – IT, biotechnology – pharmaceuticals, precision mechanics – automation, and new material technology.

Ms. Le Bich Loan, Deputy Head of SHTP Management Board, announced preferential policies for investment in SHTP, as well as projects, such as smart factories and logistics centers, and introduced investors to the Science Park, which prioritizes research and development projects and activities.

“In the coming time, investment attraction into SHTP will aim to magnet projects with advanced technology, attached with exploiting the strengths established ecosystems,” said Ms. Le Bich Loan.

At the conference, some investors complained that the investment licensing procedure took too long. Mr. Pham Tan Dat, a representative of an investor specializing in big data, said that the SHTP Management Board needs to have many programs to announce new guidelines and policies of the city on attracting investment, as well as commitments on administrative procedures for investors to access investment in SHTP more easily.

Chairman Phan Van Mai affirmed that the city made efforts to solve the investment licensing procedure, but many documents still take a long time, causing a loss of time and efforts of investors, with some projects two years late. “We are aware of this shortcoming and are committed to quickly resolving the investment licensing procedures for investors,” said Chairman of the HCMC People’s Committee Phan Van Mai.

On this occasion, SHTP Management Board gave investment adjustment certificates to three projects with an additional investment capital of more than $841 million and VND180 billion.

HCMC pledges to facilitate enterprises to increase value in SHTP ảnh 2

Mr. Phan Van Mai, Chairman of the HCMC People’s Committee (L) gives investment adjustment certificates to three projects. (Photo: SGGP)

Specifically, the project of Samsung Electronics HCMC CE Complex Co., Ltd., increased the investment capital by more than $841 million, sending the accumulated investment capital to more than $2.84 billion; the Hoa Binh Innovation Center project added VND150 billion, raising accumulated investment capital to VND900 billion; Vietnam Pharmaceutical and Standard Substances Factory project adjusted the investment capital by VND30 billion, increasing accumulated capital to VND300 billion.

By Ba Tan – Translated by Da Nguyet

The government’s proposal to tax online gaming at the highest rate under the goods and services tax (GST) has the sector concerned about its prospects for future expansion.

It was reported that a proposal from the group of state finance ministers to collect a 28% GST on casinos, and horse racing, along with online gaming, is expected to be reviewed by the GST Council at its upcoming meeting on June 28.

Online gaming should be taxed at the entire value of the consideration, including the contest entry fee paid by the player upon participation in the game, according to a recommendation made by the Group of Ministers led by Meghalaya chief minister Conrad Sangma.

However, executives and online gaming industry experts have expressed concerns. According to them, it could slow down the expansion of online gaming companies and force fantasy sports companies to provide smaller prize pools, which could cause their loyal customers to quit the platforms in pursuit of greater games.

Kowshik Komandur, AVP with one of the leading mobile entertainment companies, OnMobile Global Limited, shared his opinion regarding this matter with News18.

According to him, the online gaming industry revenue is poised for a manifold increase of revenue by the end of this year. While citing details available on Statista, he said that this market is currently at $ 1.54 Billion in 2022 and it’s expected to grow to $ 5 Bn by 2025 leading to 2 lakh additional jobs in the process and India becoming one of the leading gaming markets in the world.

“Today unfortunately in India, every state has different regulations and policies and this has turned out to be a hindrance to the growth of this high potential industry. Constant uncertainty will only lead to the drying up of the flow of FDI into the industry and this is something the government does not want,” the industry insider stated.

Komandur said that Prime Minister Narendra Modi firmly stated that “the gaming market is huge internationally and the number of youth connected to this market globally is increasing” and the Ministry of Electronics and Information Technology held a meeting with multiple online gaming platforms, including some of the major gaming unicorns to discuss the framework.

However, he said: “The current regime taxes online games at 18% GST. This is very much in line with international standards of 15-20%,”

But Komandur also highlighted that “the jump in revenue has invited the government’s attention towards GST taxation”.

“The government is now looking to impose 28% GST on the online gaming industry, as a move to regulate the sector, citing the example of horse racing. Any further increase from the current levels would only lead to the burden of the payment of the GST being passed on to the players and could also encourage players to stray towards more viable games hosted offsite,” he noted and added that “by all accounts, this move could lead to discouraging the gambling and betting within the country”.

Meanwhile, Dinker Vashisht, vice-president, of corporate and regulatory affairs, Games24x7, told Mint that Not only will such a choice (levying GST on total pool instead of GGR) be disastrous for the sector, but it also violates both the principles of fair taxation and GST guidelines.

As per Vashisht, only the lottery, betting, and gaming are considered “actionable claims” under the GST Act. Creditors can make actionable claims on any sort of debt other than one secured by a mortgage of immovable property.

In real money gaming, for example, money placed by players to create a prize pool that is then dispersed among winners is an actionable claim.

Vashisht also said: “Only the platform fee charged by skill gaming operators constitutes the value of supply.”

As reported, other industry experts are also concerned that the prize pool reduction may drive many gamers to offshore betting companies that offer fantasy sports, online rummy, and poker.

It is noteworthy that from 360 million in 2020 to 390 million in 2021, the overall number of online gamers increased by 8%, and India is predicted to become one of the world’s biggest gaming marketplaces.

According to a KPMG report, it has been gradually growing for the last five years and is predicted to triple in value to $3.9 billion by 2025.

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