What are the benefits of project approval?
Project approval serves not only to comply with the Official Development Assistance (ODA) rule of Vietnam. It eliminates significant tax liabilities and provides benefits including (i) entitlement to tax exemptions such as personal income tax for expatriates, corporate income tax, or contractor withholding tax; (ii) no need for a work permit for expatriates; (iii) perception as legitimate operations, which help build partnership and programs with Vietnamese counterparts; and (iv) no risk of administrative fines for unlawful (unapproved) operations in Vietnam.
What is most important in seeking project approval?
Developing a good working relationship and partnership with the counterpart that hosts the Activity –also known as the Managing Agency (MA) – is the key to speedy and successful project approval.This will require (i) understanding the MA, its incentives, challenges, and personalities; (ii) aconstructive and developmental approach to overcoming problems and differences; and (iii)transparency, mutual trust, and respect.
