THE INVESTMENT AND BUSINESS ENVIRONMENT IN VIETNAM

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In this post, we will provide information related to the legal framework, investment process, form in Vietnam, Immigration.

1.Legal framework

1.1. Taxation Of Business Environment

Corporate Income Tax (CIT);
Import – Export Duties;
Value Added Tax (VAT);
Special Sales Tax (excise tax) or (SCT); and
Personal Income Tax (PIT).

Please click here to find out more about taxation in Vietnam: https://lookoffice.vn/how-to-invest-in-vietnam-taxation

1.2. Land For Business Environment

In Vietnam, the land is public property, the state exercises the right to represent the owner and manage the land. All citizens, organizations, and enterprises are not allowed to own land but are entitled to use land. This means that they have the right to use the land, transfer the land to others to use, lease and leave an estate or present their land-use rights or use the land as collateral or contribute capital to a business. On the issue of land use by foreign investors, the current Vietnamese land law allows Vietnamese enterprises to buy/sell land use rights while foreign investors have not yet obtained this right. However, foreign investors can use land directly from competent state agencies including the Government of Vietnam, or contribute capital with land use rights from Vietnamese joint ventures. .

Please click here to find out more about land issues in Vietnam: https://lookoffice.vn/how-to-invest-in-vietnam-land-issues

1.3 Labour Of Business Environment

Foreign-invested enterprises may directly recruit Vietnamese workers or recruit through human resources services. They are required to send the list of recruited workers to the local government’s labor-management agency. For jobs requiring high technology and technology that Vietnamese employees cannot satisfy, enterprises are allowed to recruit a proportion of foreign workers and employees under fixed-term contracts; However, they need to develop a plan to train Vietnamese workers so that Vietnamese workers can undertake these jobs and replace foreign workers according to the Government’s regulations.

Please click here to find out more about the labor regime in Vietnam: https://lookoffice.vn/how-to-invest-in-vietnam-labor-regime

1.4. International Trade For Business Environment

The Vietnamese Government’s international trade policy has undergone many positive changes over the years. Vietnam always strengthens bilateral cooperation, especially the US-Vietnam Trade Agreement, joining ASEAN, APEC, integrating AFTA and Vietnam joining WTO, TPP.

1.5. Customs Services Of Business Environment

In order to conform to international commitments, domestic import and export regulations and customs services have been amended and supplemented in a more open, transparent way for import and export activities, especially about legal proceedings.

2. Forms of investment

a. Direct investment:

Establish economic organizations with 100% domestic capital and 100% foreign capital
Investment in the form of BCC contract, BOT contract, BT contract
Business development investment (production capacity expansion, technology innovation, …)
Purchase shares, contribute capital to participate in the management of investment activities
Investment to implement mergers and acquisitions of enterprises
Other direct investments.

b. Indirect investment:

Buying shares, stocks, bonds, and other valuable papers
By the stock investment fund
By way of other financial intermediaries.

Please click here to find out more about forms of investment in Vietnam: https://lookoffice.vn/forms-of-investment

3. Immigration

Foreigners are only allowed to leave or enter Vietnam if they have a passport or passport replacement document (hereinafter referred to as a passport) and visas issued by a competent Vietnamese agency, except for cases of visa exemption. Foreigners shall apply for Vietnam visas at immigration management agencies of the Ministry of Public Security, consular offices of the Ministry of Foreign Affairs, diplomatic missions, Vietnamese consulates abroad.

Source: vietnamnationallaw

To find more about guide for business and investment in Vietnam, you can click here: https://lookoffice.vn/economy-business-investment/guide/

For Foreign companies want to start or expand businesses and look for an office in Vietnam: