Sectors prohibited from business of foreign investors

Written By PLF Law Firm “Currently the conditional 267 sectors whose details are specifically listed in the 2014 Investment Law which has taken effect since July 1st 2015. However, concerning the sectors prohibited from business, PLF has noticed that the regulations applied to said sectors are located throughout different documents, making it difficult for investors

Advantages and limitations of each type of business entity in Vietnam

Written By PLF Law Firm “According the Vietnam Law on Enterprises, there are four common types of business entity at present: private enterprises, partnerships, joint stock companies, limited liability companies (multi-member limited liability companies and single-member limited liability companies).” I. Private Enterprises  This is the most simple business entity.  A private enterprise is owned by

Invalid Civil Transactions

Written By PLF Law Firm “When entering into contracts, enterprises can freely bind mutual obligations. However, the Vietnamese law still has regulations on agreements exceeding certain limits, which will lead to invalidity of such contracts.” Depending on the nature and extent of the invalidity, null and void contracts can be divided into two categories: ·

How may companies market and promote their goods or services in Vietnam?

Written By PLF Law Firm “Vietnamese businesses often choose between a variety of ways to market and promote their goods or services. However, company leaders and marketing managers should always ensure that promotional methods and strategies comply with unfair competition statutes and any other law applicable in Vietnam.” Unfair marketing practices The following are prohibited

Which goods or services may Vietnamese companies promote in trade fairs and exhibitions?

Written By PLF Law Firm “Foreign-owned Vietnamese companies often attend trade fairs and exhibitions to promote their goods and services. These events are particularly useful for establishing long-term commercial relationships as well for closing deals on the spot. Business owners and marketing managers should always ensure that they are promoting legally permissible goods and services

What are the steps to obtain an Investment Certificate (IC) in Vietnam?

Written By PLF Law Firm “There are two types of investment in Vietnam: indirect investment and direct investment.” Indirect investment is a form of investment in which the investor does not participate directly in the management of the investment activity but through the purchase of shares, stocks, bonds, other commercial papers or through a securities investment

What are the steps to establish a wholly foreign-owned enterprise (WFOE) in Vietnam?

“Vietnam attracts foreign investors as an emerging market with countless opportunities. However, first-time foreign investors seeking to establish a wholly foreign-owned enterprise (WFOE) in Vietnam are frequently confronted with various legal issues and difficulties.” Indirect investment is a form of investment in which the investor does not participate directly in the management of the investment activity

To what extent may a foreign investor participate in

“The 30% restrictions on equity holdings by foreign investors have been relaxed due to Vietnam’s commitments under the World Trade Organization (WTO); yet there are exceptional cases.” In accordance with the Law on Investment (2005), foreign investors comprise: Organizations established and operating under foreign laws and their overseas and Vietnam-based subsidiaries. Organizations established and operating

Incentives for FDI in Vietnam

Written By PLF Law Firm “Prospective foreign investors in Vietnam should be informed of the investment incentives offered by the Vietnamese government.” Economic Incentives Foreign investors are most typically attracted by the tax incentives for direct investment in Vietnam. The Corporate Income Tax (CIT) rate has gradually fallen from 32% in 1997, to 25% in