Foreigners exit Cam Ranh airport in Khanh Hoa province. The value added tax refunds on purchases of Vietnamese products will be given from January 6. — Photo baokhanhhoa.com.vn

KHANH HOA (Biz Hub) — Foreigners and overseas Vietnamese people exiting the country from Cam Ranh airport in Khanh Hoa province will be eligible for value added tax (VAT) refunds on purchases of Vietnamese products.

The refunds will be given from January 6, a provincial custom official said on January 4.

Dinh Van Luan, deputy head of the southern province's customs department, said that they are prepared to operate the VAT refund booth in Cam Ranh airport.

Luan added that the Vietnam Joint Stock commercial Bank for Industry and Trade's Khanh Hoa branch has been allowed by the finance ministry to handle VAT refund receipts for foreigners at the airport.

The VAT refunds are expected to encourage foreign travellers to buy Vietnamese products, which will help the provincial tourism sector in particular and other businesses in general. In addition, businesses also benefit from VAT refunds, such as by selling more products to foreign tourists and increasing their revenues.

Six businesses in Khanh Hoa are allowed to sell goods subject to the VAT refunds, including the Khanh Viet Corporation, the Me Trang coffee joint stock company and the Viet Khanh Phu Ltd Company.

Luan said that the province will open its second VAT refund booth in Nha Trang port in the future.

According to a directive signed by Prime Minister in May 2014, four airports and three ports are allowed to open VAT refund booths for foreigners and overseas Vietnamese people. These are the Noi Bai, Tan Son Nhat, Da Nang and Cam Ranh airports, and the Khanh Hoi, Da Nang and Nha Trang Ports.— VNS