Vietnam holds membership in 63 international organisations, including the United Nations (UN), Association of Southeast Asian Nations (ASEAN), Non-Aligned Movement (NAM), International Organisation of the Francophonie (La Francophonie), and World Trade Organization (WTO). It also maintains relations with over 650 non-governmental organisations. As of 2010 Vietnam had established diplomatic relations with 178 countries.
Vietnam is one of the fastest growing countries in the world and its economy has shown resilience to trade wars and slower growth rates in neighbouring China. This accelerated economic pace is due to labour shifting from agriculture to manufacturing and services, private investment, a strong tourist sector, higher wages, and accelerating urbanisation. Exports constitute an increasingly significant contribution to Vietnam's GDP and certain sectors, such as industrial production, textile, electronics and seafood production have been growing rapidly.
Vietnam's economy is based on large state-owned industries such as textiles, food, furniture, plastics and paper as well as tourism and telecommunications.
Since 1992 Vietnam's banking system has consisted of a combination of state-owned, joint-stock, joint-venture, and foreign banks, but the state-owned commercial banks predominate, and they suffer from high levels of NPL, most of them to state-owned enterprises.
The Vietnamese tax laws form the backbone of the taxation system. The backbone of the taxation system are the tax laws which for instance, include the Law on Corporate Income Tax, the Law on Personal Income Tax, the amended Law on Value-Added Tax, the Law on Special Sales Tax. These amendments were made in order to create favourable conditions for businesses to attract investments and reduce capital difficulties as well as recover the business’s performance.
There are also numerous decrees, circulars and other regulations issued by the government, various ministries and agencies, with a view to providing guidance about the implementation of the laws.
The major goal of Vietnam’s FDI policy is to attract capital, advanced technology and management skills in order to effectively develop the country’s potential, increase savings, improve people’s living standard and realise the cause of modernisation and industrialisation.
Vietnam has a pro-investment policy. Investment incentives and different treatment levels apply to different categories of sectors and groups of geographical areas. Incentives include exempt or reduced corporate income tax for a number of years, land rents, import duty exemption for capital goods, deferred payment of VAT, etc. An investment license is valid for up to 50 years, renewable up to another 50 years.
The Foreign Investment Agency is the central licensing authority which grants licenses to a certain type of investment. It is supported by local departments of investment in 63 provinces throughout the country ready to provide help to foreign investors. In a number of cases, the investment license must be approved by the Prime Minister.
Investment in Vietnam can be made directly or indirectly through the purchase of shares. The current process of equitisation of Vietnamese State-owned Enterprises is offering opportunities to foreign investors to break into some sectors which are state monopolies.
Foreign investments in Vietnam are realised under the following forms:
• Business co-operation contracts
• Joint-ventures
• 100 % foreign-owned enterprises
• Branches (limited to certain sectors)
• Other forms e.g. Export Processing Zone (EPZ), Build-Operate-Transfer (BOT), BuildTransfer-Operate (BTO) and Build-Transfer (BT).
Required documents for registration of a business in Vietnam are specified by the Law on Enterprises 2019 and newly issued decrees. These regulations are characterised by openness, ease and flexibility.
According to these regulations, the founder of an enterprise has to submit all of the enterprise registration documents as prescribed by the statutory regulations to an authorised business registration body. Enterprise registration comprises both the business registration and tax registration procedures. The business registration body will consider the enterprise registration documents and issue an enterprise registration certificate within five business days. The enterprise registration certificate is now both the business registration certificate and tax registration certificate. If the business registration certificate is refused, the founder of the enterprise will be notified in writing. The notice must specify the reasons and the amendments or additions required.
The time-limit for issuance of a business registration certificate attached to a specific investment project is subject to the law on investment.
Vietnam has the regulations in place will but is still far from implementing robust enforcement, therefore, it is recommended that you undertake self-protection measures before bringing your products in. There are a number of routes for you to approach if you are faced with an IP infringement: market surveillance inspectors, customs investigators, economic police, different inspectorates under each ministry. UKTI Vietnam can help you protect your legitimate IP rights in Vietnam by working with these authorities.
The legal system of Vietnam has all the characteristics of a civil law tradition, which is essentially based on the written law. The Vietnamese law system comprises three fundamental elements as follows:
– Legal norms (elementary unit of the system);
– Legal classes (group of legal norms that have the same features and regulate a group of correlative social relations);
– Legal branches (system of legal norms that have the same specialities to govern a sort of social relations in a certain field of society).
Our law firm VLO provides legal services for corporate and private clients in Vietnam. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Vietnam is one of the fastest growing countries in the world and its economy has shown resilience to trade wars and slower growth rates in neighbouring China. This accelerated economic pace is due to labour shifting from agriculture to manufacturing and services, private investment, a strong tourist sector, higher wages, and accelerating urbanisation. Exports constitute an increasingly significant contribution to Vietnam's GDP and certain sectors, such as industrial production, textile, electronics and seafood production have been growing rapidly.
Vietnam's economy is based on large state-owned industries such as textiles, food, furniture, plastics and paper as well as tourism and telecommunications.
Since 1992 Vietnam's banking system has consisted of a combination of state-owned, joint-stock, joint-venture, and foreign banks, but the state-owned commercial banks predominate, and they suffer from high levels of NPL, most of them to state-owned enterprises.
The Vietnamese tax laws form the backbone of the taxation system. The backbone of the taxation system are the tax laws which for instance, include the Law on Corporate Income Tax, the Law on Personal Income Tax, the amended Law on Value-Added Tax, the Law on Special Sales Tax. These amendments were made in order to create favourable conditions for businesses to attract investments and reduce capital difficulties as well as recover the business’s performance.
There are also numerous decrees, circulars and other regulations issued by the government, various ministries and agencies, with a view to providing guidance about the implementation of the laws.
The major goal of Vietnam’s FDI policy is to attract capital, advanced technology and management skills in order to effectively develop the country’s potential, increase savings, improve people’s living standard and realise the cause of modernisation and industrialisation.
Vietnam has a pro-investment policy. Investment incentives and different treatment levels apply to different categories of sectors and groups of geographical areas. Incentives include exempt or reduced corporate income tax for a number of years, land rents, import duty exemption for capital goods, deferred payment of VAT, etc. An investment license is valid for up to 50 years, renewable up to another 50 years.
The Foreign Investment Agency is the central licensing authority which grants licenses to a certain type of investment. It is supported by local departments of investment in 63 provinces throughout the country ready to provide help to foreign investors. In a number of cases, the investment license must be approved by the Prime Minister.
Investment in Vietnam can be made directly or indirectly through the purchase of shares. The current process of equitisation of Vietnamese State-owned Enterprises is offering opportunities to foreign investors to break into some sectors which are state monopolies.
Foreign investments in Vietnam are realised under the following forms:
• Business co-operation contracts
• Joint-ventures
• 100 % foreign-owned enterprises
• Branches (limited to certain sectors)
• Other forms e.g. Export Processing Zone (EPZ), Build-Operate-Transfer (BOT), BuildTransfer-Operate (BTO) and Build-Transfer (BT).
Required documents for registration of a business in Vietnam are specified by the Law on Enterprises 2019 and newly issued decrees. These regulations are characterised by openness, ease and flexibility.
According to these regulations, the founder of an enterprise has to submit all of the enterprise registration documents as prescribed by the statutory regulations to an authorised business registration body. Enterprise registration comprises both the business registration and tax registration procedures. The business registration body will consider the enterprise registration documents and issue an enterprise registration certificate within five business days. The enterprise registration certificate is now both the business registration certificate and tax registration certificate. If the business registration certificate is refused, the founder of the enterprise will be notified in writing. The notice must specify the reasons and the amendments or additions required.
The time-limit for issuance of a business registration certificate attached to a specific investment project is subject to the law on investment.
Vietnam has the regulations in place will but is still far from implementing robust enforcement, therefore, it is recommended that you undertake self-protection measures before bringing your products in. There are a number of routes for you to approach if you are faced with an IP infringement: market surveillance inspectors, customs investigators, economic police, different inspectorates under each ministry. UKTI Vietnam can help you protect your legitimate IP rights in Vietnam by working with these authorities.
The legal system of Vietnam has all the characteristics of a civil law tradition, which is essentially based on the written law. The Vietnamese law system comprises three fundamental elements as follows:
– Legal norms (elementary unit of the system);
– Legal classes (group of legal norms that have the same features and regulate a group of correlative social relations);
– Legal branches (system of legal norms that have the same specialities to govern a sort of social relations in a certain field of society).
Our law firm VLO provides legal services for corporate and private clients in Vietnam. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Vietnam