Last update 10:38 | 04/02/2018 vietnamnet

Tax reform passed by the US Congress at the end of last year may affect Vietnam’s economy as US investors are likely to send their investment back home, where the corporate income tax (CIT) rate has been slashed, Vietnamese economic experts have warned.

The sweeping tax reforms, signed into law by President Donald Trump on December 22, include reductions in the CIT rate from 35 per cent to 21 per cent and a minimum of 10.5 per cent rate on any foreign profits US companies send home.

The tax overhaul should encourage corporations to relocate or build new operations in the US instead of overseas, where the CIT rate is often lower.

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