Banks, telcos pay the most taxes in Vietnam: report

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Banks and telecom firms were the largest taxpayers in Vietnam last year, proving the resilience of the two sectors even amid economic difficulties, a new report says.

Among the 1,000 largest taxpayers, the banking system led with 20.95 percent of the total tax payments, followed by the telecom sector with 19.93 percent.

The real estate and construction industry came third, accounting for 11.56 percent of all the payments, according to the annual report by local rating company Vietnam Report JSC Friday.

The 1,000 companies paid combined coporate income taxes of VND54 trillion (US$2.62 billion), or 8 percent of the total revenues for the state budget in 2011. More than half of the payments came from state-owned enterprises while foreign companies only made up 19.6 percent of the sum, the report said.

As expected, wireless carriers Viettel and MobiFone topped the list of taxpayers. Major commercial lenders including BIDV and Agribank were also among the top 10.

While the telecom sector is on track for another succesful year, earnings for banks this year will be lower than had been originally forecast. Some banks have had to revise their profit targets as loans have expanded at a sluggish pace so far, rising only a little over 4 percent compared to the end of 2011.

Last year total outstanding loans grew 10.9 percent from 2010, which was the lowest annual rate of credit growth in two decades.

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