HOW TO OPEN COMPANY IN VIETNAM?
According to the Global Finance FDI Index, Vietnam is one of the top countries for foreign direct investment. Therefore, foreign investors are opening company in Vietnam to do business in the country. The question is how to open company in Vietnam lawfully, efficiently and costly?
IS IT A GOOD TIME FOR FOREIGN INVESTORS TO OPEN COMPANY IN VIETNAM?
The answer is YES. This could be seen through the increasing number of investors into Vietnam during the last years. According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, Japan is top tier number one investor in Vietnam with $6.47 billion of investment in the first half of 2018. In second and third place are South Korea ($5.06 billion, 24.9 percent of the total) and Singapore ($2.39 billion, 11.8 percent of the total), respectively. The other top investors include China, Taiwan, Hong Kong, Malaysia, USA.
With GDP growth 6% to 7% from 2016 to 2018, Vietnam is a very fast-growing economy. Vietnam is also known as a country with and a stable political system. Presently, Vietnam has signed 17 free trademark agreement (FTAs) with different countries and developed markets. Vietnamese market is famous for the cheap labour costs which could be a good place to shift from China.
WHAT SECTORS ARE INVESTORS ELIGIBLE TO OPEN COMPANY IN VIETNAM?
With the aim of encouraging foreign investment in Vietnam, Vietnam has amended the related laws on foreign investment. Vietnam joined WTO and committed equivalent treatment between domestic and foreign investors when doing business in Vietnam. The Vietnamese Government commits to support and create the most favourable conditions for foreign businesses to investing and operating in Vietnam. According to Decree 60/2015, foreign investors could open 100% Permitted foreign ownership company for most sectors in Vietnam.
WHAT FORMS OF BUSINESS COULD FOREIGN INVESTORS OPEN COMPANY IN VIETNAM?
Foreign investors could open company in Vietnam under of the following forms:
- Limited-liability company
A limited-liability company formed by foreign investors in Vietnam may be under the forms of either:
+ A foreign-invested joint-venture company between foreign investors and at least one domestic one; or
+ A 100% foreign-owned enterprise;
- Joint-stock company
A joint-stock company must have at least three shareholders. The company may either be 100% foreign-owned; or a joint venture between both foreign investors and domestic ones.
This form of foreign investment in Vietnam may be setup between a legal entity or an individual and the individual general partner. The partner has unrestricted liability for the operations of the partnership
- Forming Business cooperation contract (BCC)
- Opening Representative office in Vietnam
- Opening Branch in Vietnam
- Build-operate-transfer (’BOT’), Build-transfer (’BT’) and Build-transfer-operate (’BTO’) Contracts
- Public and Private Partnership Contract
WHAT SERVICES ASL LAW COULD DO FOR CLIENTS/FOREIGN INVESTORS DOING BUSINESS IN VIETNAM?
ASL LAW with very experienced business lawyers and consultants shall provide the clients a full legal service with affordable quotation to company formation in Vietnam from the initial step until full functional operation. Accordingly, the business of the clients shall operate in Vietnam legally, efficiently and costly.