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

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

Investment under Business Cooperation Contract

Written By PLF Law Firm There is a variety of investments in the form of contracts in Vietnam including investment under the Business Cooperation Contract, which offers many benefits as well as certain disadvantages. As regulated by Law on Investment (2005) and guided by Circular No. 108/2006/ND-CP, Business Cooperation Contract (hereinafter referred to as “BCC”)

Rights of investors in Vietnam

Written By PLF Law Firm Investors in Vietnam are entitled to receive basic rights as decreed by the government, including: 1. Autonomy in investment/business: Right to select investment sectors, forms of investment, methods of raising capital, location, scale, co-investors and operation duration of such investment project in accordance with current regulations and local planning schemes; Right

Vietnam Opens More Logistics Service Sectors to Foreign Investors

Written By PLF Law Firm “In recent years, Vietnam Government has been facilitating foreign investment in almost all types of logistics services excluding inspection services, certificate granting for conveyances, transport auxiliary services, and other restrictions on transport related services.“ As of January 22nd, 2014, the Prime Minister of Vietnam issued Decision No. 169/QĐ-TTg approving the

Processing activity in Vietnam

Written By PLF Law Firm “Processing is no longer deemed a novel economic activity in Vietnam. In the scope of this article, PLF would like to cover several noteworthy issues for foreign investors when outsourcing processing in this particular nation.“ During our cooperation with foreign investors outsourcing processing in Vietnam, we have become aware that