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Managing transfer pricing behaviours of MNEs in Vietnam: Protecting tax base while seeking to attract FDI

Hoang, Thi Le Hang (2019) Managing transfer pricing behaviours of MNEs in Vietnam: Protecting tax base while seeking to attract FDI. Masters thesis, Dublin, National College of Ireland.

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Abstract

Along with the globalisation, the economy witnessed the rapid emergence of new crucial business pattern, Foreign Direct Investment (FDI), which helps entrepreneurs expanding its value chain over the borders, transfers goods in the global flows and generates wealth for economies. However, FDI companies always find and use flexible techniques to gain as much profits as they can in the host countries that abusing transfer pricing to avoid tax duty is the most popular and effective method. The practical reality shows different perspectives, contribution of FDI sector to the nation is under expectation. A study conducted by Do and Cao (2015) argued that the negative situation occurring in Vietnam is a result of transfer pricing abuse.

This research investigates on studying (i) the current situation of FDI sector in Vietnam, following is (ii) the rise of the transfer pricing abuse and tax avoidance and (iii) the regulation on investment policies of Vietnamese Government in order to tighten up these issues. The topic is examined under qualitative approach and conducted interviews with local government officials, economists and foreign investors operating in Vietnam.

In brief, the research uncovers that FDI is a crucial important trend to both entrepreneurs and countries even it has any disadvantages. However, the governments are also in trouble with the fact that benefits gained from FDI in practice less than what they deserve due to transfer pricing abuse partly. Therefore, government should improve their current legislation and concern some other potential measures to enhance administrative system on this issue.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance > Investment > Foreign Direct Investment
H Social Sciences > HG Finance > Investment
H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Multinational Industries
H Social Sciences > HJ Public Finance > Taxation
Divisions: School of Business > Master of Science in Management
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 23 Oct 2019 14:23
Last Modified: 23 Oct 2019 14:26
URI: http://trap.ncirl.ie/id/eprint/4032

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