The finance ministry has issued a circular under which local enterprises will enjoy value added tax exemptions for goods exported to foreign markets.

However, the enterprises will be subject to export and import tariffs as well as corporate income taxes. They will also comply with the double taxation avoidance agreement in countries with which Vietnam has signed agreements.

Under the circular, enterprises will pay duties on equipment and materials exported as assets for overseas projects. The corporate income tax (CIT) rate will be 25 percent.

If enterprises incur losses or their profits abroad do not reach the taxable threshold, local firms will only have to submit financial reports to relevant departments to calculate CIT. The losses will not be deducted from profits earned in the country.

In 2009, local enterprises invested $7.2 billion in 457 projects in 50 countries and territories, 43 percent higher than last year's plan and 14 percent higher than the 1989-2008 period.