CONDITIONS OF SETTING UP IMPORT AND EXPORT COMPANY IN VIETNAM

Before Vietnam joined World Trading Organization (WTO), distribution and import, export activities conducted by foreign owned entities are strictly regulated by Vietnam government.  As such, foreigners could only conduct the import of goods through the Vietnam agents. Since 2007, Vietnam has become an official member of WTO and it had to commit a route to open local market to foreign companies and traders, including foreign...

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CONDITIONAL INVESTMENT SECTORS AND INVESTMENT CONDITIONS IN VIETNAM

When setting up a trading company in Vietnam, beside other conditions, the foreign investors have to prove experience in trading area.  Areas such as banking, financial services, real estate, security services will require minimum investment.   Foreign investment lawyers should be consulted for advice on investment licensing matters. In general, foreign investors making investment in Vietnam are encouraged.  However,...

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WHICH FORM OF INVESTMENT – BRANCH OR COMPANY?

Foreign entities can set-up company or branch offices in Vietnam to carry out business activities. There are several main different aspects between opening a branch office or establishing a foreign owned company in Vietnam. Conditions Permits for establishment of Vietnam-based branches of foreign enterprise shall each have a valid term of five years. Foreign enterprise must choose between establishing a 100% foreign capital...

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CONDITIONS FOR ESTABLISHING REPRESENTATIVE OFFICE IN VIETNAM

Decree No. 07/2016 / ND-CP regulating the Commercial Law regarding representative offices and branches of foreign traders in Vietnam that have recently been issued by the Government. Accordingly, foreign traders can establish their representative offices and branches in Vietnam under Vietnam’s commitments in international treaties to which Vietnam is a member. A foreign trader cannot establish more than one representative office or...

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CASES THAT FOREIGNERS DO NOT HAVE TO APPLY FOR WORK PERMITS

Pursuant to Decree No. 11/2016/ND-CP of the Government that will take effect April 1st 2016, the below cases of foreigner will not have to apply for work permit in Vietnam: As capital contributing members or the owner of limited liability company. As member of the Managing Board of the joint stock company. As Head of the representative office, project of international organizations, non-governmental organizations in Vietnam. Entry...

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NOTE ON SETTING UP A REPRESENTATIVE OFFICE IN VIETNAM

Setting up a representative office is considered one of the simplest forms of investment in Vietnam. The representative office will help the foreign trader to lease office, hire people, open bank account, and promote the business activities in Vietnam market.  The chief representative if being foreigner will then could apply for work permit and temporary residence card to stay in Vietnam.  There is no income tax...

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HOW TO DECLARE VAT FOR FOREIGN CONTRACTORS IN VIETNAM

Foreign Contractors are subject to tax for their income in Vietnam. On February 11, 2015, the Ministry of Finance signed the Decision No. 274/QD-BTC on publishing amendments and supplements of administrative procedures in the tax management under the Ministry of Finance’s authority. Declare Tax for Foreign Contractors in Vietnam Under this Decision, procedures of declaring tax for foreign contractors, foreign sub-contractors paying value added...

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PROCESS SERVICE IN VIETNAM

Process service is the notification and delivery of court and the civil judgment agency’s documents to litigants in accordance with the law. The process service is conducted using the following methods: Grant, served and notify directly by post or by authorized third party; Publicly listing; Announcement on the mass media. With the 1st and 2nd methods, previously, the court clerk, expert at the civil enforcement agency or...

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