The Vietnamese Ministry of Information and Communications on Tuesday accused foreign streaming companies such as Netflix Inc and Apple Inc of skirting their tax responsibilities, saying it creates unfair competition for domestic firms.
Foreign streaming firms, which have combined revenues of nearly 1 trillion dong (US$43.15 million) from 1 million subscribers, have never paid tax in Vietnam, the ministry said.
“Domestic companies have to abide by tax and content regulations while foreign firms do not, which is unfair competition,” Vietnamese Minister of Information and Communications Nguyen Manh Hung told a government meeting.
“Some content on Netflix has flouted regulations related to the history and sovereignty of the country, violence, drug use and sex,” he added.
Vietnam introduced a cybersecurity law two years ago that requires all foreign businesses earning income from online activities in Vietnam to store their data in the country.
Netflix said it had no plans to place its servers locally or open an office in Vietnam at the moment.
The company said in a statement that it would continue to engage with the government on potential regulations on video on-demand services accessible in Vietnam.
“We are supportive of the implementation of a mechanism that will make it possible for foreign service providers like Netflix to collect and remit taxes in Vietnam,” a Netflix spokesperson said in the statement.
“However today such a mechanism does not exist,” it said.
Netflix was told to remove Full Metal Jacket, a Vietnam War film from its service in the country.
Hung said that the information ministry, finance ministry and tax department were working to facilitate tax collection by calculating foreign streaming companies’ revenues in Vietnam since their entry into the market.
Tech giants are increasingly facing tougher fiscal regimes in Southeast Asia, where regulators held talks last year on a regional push to tax them more.
The Philippines, Thailand and Indonesia have recently passed or drafted legislation aiming to ensure taxes are paid.
Taiwan Semiconductor Manufacturing’s (TSMC, 台積電) first wafer fab in Kumamoto, Japan is still set to launch commercial production in the fourth quarter of this year as planned, the world’s largest contract chipmaker said on Saturday in response to reports that mass production might begin ahead of schedule. TSMC said the monthly production capacity of the joint venture fab, Japan Advanced Semiconductor Manufacturing (JASM), is expected to hit 55,000 units of 12-inch wafers, using the mature 12-nanometer, 16-nanometer, 22-nanometer and 28-nanometer processes. JASM is owned by TSMC and its Japanese business partners Sony Semiconductor Solutions Corp and Denso Corp, with the Taiwanese company
US President Joe Biden’s administration is in talks to confer more than US$10 billion in subsidies to Intel Corp, people familiar with the matter said, in what would be the largest award yet under a plan to bring semiconductor manufacturing back to US soil. Intel’s award package is expected to include both loans and direct grants, the source said. They stressed that negotiations are still under way. The US Department of Commerce and Intel declined to comment. The incentives would come from the 2022 Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, which set aside US$39 billion in direct grants as
A new artificial intelligence (AI) tool that promises to create short videos from simple text commands has raised concerns along with questions from artists and media professionals. OpenAI, the creator of ChatGPT and image generator DALL-E, on Thursday said it was testing a text-to-video model called “Sora” that can allow users to create realistic videos with simple prompts. The San Francisco-based start-up said that Sora can “generate complex scenes with multiple characters, specific types of motion, and accurate details of the subject and background,” but added that it still has limitations, such as possibly “mixing up left and right.” Examples of Sora-created clips
Super Micro Computer Inc’s lengthy rally came to a shuddering halt on Friday, with a selloff that derailed what had looked to be the server maker’s best week on record. Shares fell 20 percent, their biggest one-day percentage drop since August last year. The decline comes in the wake of a nine-session run of gains, the longest such streak for the stock since 2016. However, even with the day’s selloff, the stock rose 8.5 percent for the week. Despite Friday’s drop, recent gains show how Super Micro has become one of the hottest names in artificial intelligence (AI). The stock has risen