Solution to Transfer Pricing of multinational companies in Vietnam

Abstract

The foreign direct investment (FDI) makes an important contribution to the socio-economic growth of Vietnam.
However, in fact, in Vietnam, a series of declarations of net loss have made by FDI enterprises for years but they still
continued to expand production and business activities and are suspected to be related to the transfer pricing such as
Kangnam, Metro , which causes a large amount of tax loss to the country and creates unfair competition among the
domestic business. This article analyzes the forms of transfer pricing taking place in Vietnam and proposes some antitransfer pricing measures, particularly emphasizez the plan of simplified APA in order to improve the efficiency of the
management tax in the future.