Study On Tax Coordination Between China And Vietnam Bilateral Trade Relations

As a socialist country, China and Vietnam had attracted the attention of othercountries in the world. After entering twenty-first Century, the bilateral trade sustainsdevelopment between China and Vietnam. In2012, the bilateral trade volume Chinaand Vietnam more than$400million, to$410million, a year-on-year increase of35%,accounting for trade China ASEAN11%, China for8consecutive years has becomeVietnam’s largest trading partner. At present, China has become Vietnam’s largestsource of imports and third of exports. Vietnam customs statistics show,2012Vietnamfrom Chinese imports amounted to$245.9million. But it is compared between thetwo countries’ economy was very small, and there are also many problems in the tradebetween the two countries, such as the single of trade structure, for a long timeVietnam has the tariff barriers to China trade deficit, Vietnam is widespread and so.These are the factors that hinder the China and Vietnam bilateral trade furtherdevelopment.Tax policy as an important part of economic policy influences the developmentof bilateral trade in some way. Although the two countries had some agreements in thecoordination of tax, but mainly concentrated in the part of tariffs and to avoid doubletaxation on the other hand little progress, so the two sides of the tax coordination isstill a lot of work to do. China and Vietnam should strengthen coordination andcooperation on tax policy, promoting the in-depth development of bilateral trade.In this paper, through the analysis of China and Vietnam’s bilateral tradestructure, China and Vietnam’s trade is complementary than competitive. This paperanalyses the tax is an important factor affecting the China and Vietnam bilateral tradefurther development in theory, empirical, suggested the two countries need to carryout tax coordination to promote the bilateral trade to the further step. In the analysis,from the world the European Free Trade Area, ASEAN Free Trade Area and so on thesuccessful experience of other regional tax coordination, a detailed analysis of the current situation of tax coordination between China and Vietnam. Through theanalysis, the tax coordination between China and Vietnam exists mainly to avoiddouble taxation and tariff coordination part of income tax. This led to the emergenceof cooperative tax coordination of comprehensive anti tax avoidance has not launchedcomplementary trade without proper promotion. The cause of these phenomena havemany factors, including the different stages of economic development, trade structure,different political not trust factors. Based on the above analysis, I put forward somesuggestions for tax coordination between China and Vietnam.