After the piloting of a value-added tax (VAT) refund scheme in Ha Noi and Ho Chi Minh City over the past 2 years, Da Nang has now been allowed to implement this policy from the end of next month.  This permission has mainly resulted from the city’s favourable investment environment, its establishment of cooperative relationships with many foreign countries, and the increasing number of international tourist arrivals to the city.  Allowing the policy to be implemented will provide an excellent opportunity for Da Nang to advertise its image to international friends, as well as attract more visitors to the city.

Under the policy, foreigners and overseas Vietnamese can now claim VAT refunds on purchases they have made at specified participating outlets across Viet Nam when they exit the country through the Tien Sa Port or Da Nang International Airport.

A foreigner at an ao dai fabric shop

The airport’s Director, Mr Phan Kieu Hung, stressed the importance of introducing VAT refunds for foreigners because the scheme is being applied in many other countries around the world.  He said that there are a number of direct flights from Da Nang to countries such as Malaysia, Singapore, China, Japan and Korea and, as a result, the city has seen a significant increase in the number of foreign visitors.  In 2013, Da Nang welcomed 4.3 million visitors, and the figure is likely to be 5 million in 2014, of which one million of them will be foreigners.

Mrs Phan Thi Khanh Trang, the Deputy Director of the city’s branch of the Military Bank which is one of banks expected to participate in the policy, said that the VAT refund would help to stimulate the city’s tourism sector and attract more clients to her bank.