FDI inflows into our country have made new changes
Although FDI inflows into our country are still increasing, there are worrying signs of a slowdown in growth and may directly affect the disbursement of FDI in the following years. The traditional model of FDI inflows has […]
INVESTMENT INCENTIVES IN VIETNAM (PART 1)
Standard investment incentives offered to foreign investors and domestic businesses operating in Vietnam include reduced corporate tax rates, tax-free periods or tax reductions during the start-up phase, land-rent reductions and import-duty exemptions. Projects eligible for investment incentives are those that fall into the sectors of investment incentives and/or located in the geographical areas of investment [...]
INVESTMENT LICENSING / CERTIFICATION (PART 2)
Licensing procedure Depending on the size and the sector of investment, different licensing and registration procedures will be applied: i) Investment registration; or ii) Investment evaluation Foreign investors investing in Vietnam for the first time must have an investment project and carry out either registration or evaluation procedures, in order for an IC to be [...]
FOREIGN EXCHANGE CONTROL
Restrictions on the use of foreign currency Within the territory of Vietnam, all transactions, payments, listings and following advertisements of residents and non-residents must not be affected in foreign exchange except for the cases: i) Transactions with credit institutions and other permitted institutions to provide foreign exchange services ii) Residents being organizations shall be permitted […]
EXPORT DUTY & IMPORT DUTY
Exports Standard Customs documentation Customs entry as to entry of commodities for commercial purposes will typically include the following documents, attached with declaration: i) Sale contract, ii) Commercial invoice, iii) Certificate of origin (if any), iv) Packing ist, v) Bill of Lading, Airway Bill or other transport document, vi) Detailed list of imported goods if […]
MERGERS & ACQUISITIONS
During the process of investment within Vietnam, businesses with foreign-invested capital and BCC are allowed to restructure their investment by way of division, separation, merger or consolidation, or foreign investors may convert their investment into a different legal form. Foreign investors can also transfer their interest to other entities. The LOI provides that investors […]
LAND USE RELATED REGULATIONS
The State of Vietnam, on behalf of the entire people, owns and administers land, and land-users own the rights to use land (“land use right”). Ownership and use of land are mostly maintained by the Land Law 2003, and its amendments and implementing regulations. On the broadest level of laws, the Civil Code also covers […]
FORMS OF DIRECT INVESTMENT IN VIETNAM
The LOI provides for the following basic forms of direct investment: joint ventures, 100% FOEs and contract-based investment (BCC or BOT/BT/BTO). Joint venture Fundamentally, the foreign investor and its Vietnamese partner jointly apply to establish a company. The investor has two ways to create a joint venture: (i) create a new enterprise (including merger & […]
WHEN WILL E-INVOICE BECOME MANDATORY?
On the 12th of September 2019, the government issued Decree 119/2018/ND-CP regulating the usage of electronic invoice in selling goods, services. Some companies are still using physical invoice. Others have changed to e-invoice. So, when will e-invoice become mandatory? What is electronic invoice? As defined by the government: “Electronic invoices are invoices displayed in electronic […]
Private enterprises are shrinking, while FDI sector reported a record loss
Private enterprises are shrinking, while the FDI sector reported a record loss According to the PCI survey results, foreign-invested enterprises reported profits falling to 54,3% - the lowest level in many years. Meanwhile, 37,9% of businesses reported losses, also a […]