Setting Up a Foreign Invested Enterprise in Vietnam

Setting up a foreign invested enterprise in Vietnam can create value in many ways such as accessing to new market or making significant savings to your overheads. Of course, procedures for establishing a foreign company have been greatly simplified in recent years.

Read more: Procedure for setting up foreign company in Vietnam?

Why you need setting up a foreign invested enterprise in Vietnam?

Potential market

Vietnam’s economy has had a great leap forward since 30 years. With over 96 million inhabitans and young worforce, Vietnam has the domestic consumption potential. Consequently, investors may not facing harsh competition while trying to implement innovative or risky ideas with their business.

Yong, skilled population

According to the Central Census Steering Committee, the young population (from age 15 to 64) in Vietnam takes approximately 68% of the total population which is more than 96 million people. This vast, well-educated, and relatively cheap workforce has become one of the Vietnamese major assets.

GDP growth

Since the economic reforms launched in 1986, Vietnam’s econmy has grown substantially. The annual Gross Domestic Product (GDP) in Vietnam increases from US$600 per person in 2005 to a favorable US$2,700 in 2019, a massive increase in just a decade. GDP growth also implies that Vietnam has the fast growing economies in Southeast Asia.

Government incentives

Recently, Vietnamese Government has ratifies EVFTA, which brings many opportunity for investments. Moreover, the administrative procedure was reformed and the technology was thoroughly applied, so it spends very little time setiing  up a foreign – invested company in Vietnam.

Forms of foreign invested enterprise in Vietnam

Foreign investors can set up an enterprise in Vietnam in one of these two forms:

– A joint venture;

– A 100% foreign capital company.

However, when setting up an enterprise in Vietnam, foreign investors must notice all of these following:

+ Foreign investors have to check out the WTO Commitment and specialised law to ensure that their sharholding ratio in their company is allowed or not (based on the business line they are tending to invest)

+ Some of business lines are required foreign investors to set up a joint venture company with Vietnamese shareholders (check out the WTO Commitment).

+  Foreign documents must be consular legalized and translated into Vietnamese with certification.

+ For the specialised business line, after being granted licensce by the Department of Planning and Investment, they must be registered for business at the Industry and Trade Departments in order to operate.

How to set up a foreign invested enterprise in Vietnam

Investment certificate

For foreign company, an investment certificate (known as Investment Registration Certificate) is required before taking the process of business registration. Foreign investors submit an application file to the Ministry of Planning and Investment. This process of granting the investment certificate often takes 15 working days.

Business registration

After receiving an investment certificate, foreign investors must carry out the business registration at the Department of Planning and Investment to obtain the business certificate (or Enterprise Registration Certificate). This process often takes 3 working days from the submitted date of a legitimate application file.

Why should you use our service?

With over 10 years of experience operating in the field of law with a team of experienced, enthusiastic personnel. LNP LAW is confident to bring the best service to customers in the fields of Investment, Intellectual Property, Business. The above article has summarized the Setting Up a Foreign Invested Enterprise in Vietnam

Customers wishing to setting up company in Vietnam will receive the services:

– Advice, support, answer your questions related to opening company and legal issues after establishment company;

– Drafting papers related to opening company in Vietnam

– Representing customers to submit documents, receive results, solve legal issues with the competent state agencies;

– Other jobs requested by customers.