Vietnam Foreign Owned Enterprise |
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A Vietnam foreign owned enterprise is challenging for international investors because of complex licensing procedures. This entity is an attractive option for many international investors in Vietnam, since it ensures full foreign management control. The following information will help you determine whether a Vietnam foreign owned company is the optimum corporate structure to fulfill your business objectives.
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| 1. | Vietnam joined the World Trade Organization in 2007 and implemented economic reforms. These have led to a surge of new FDI and portfolio inflows, particularly in trade and investment liberalization. These reforms have led to strong economic performance—an average 7.3 % annual growth over the past decade, one of the fastest rates in Asia. | ||||||
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| 3. | The Vietnamese government offers tax incentives to wholly foreign-owned businesses, including temporary tax holidays for some projects. If foreign investors reinvest their distributed profits, they are entitled to a refund of any profit tax already paid in respect to the amount of profit reinvested. | ||||||
| 4. | A Vietnam foreign-owned enterprise offers international entrepreneurs good access to local markets while retaining full control of their company. | ||||||
| 5. | A Vietnam foreign-owned enterprise is taxed at a maximum rate of 25% on profits sourced in Vietnam and overseas. Moreover, a minimum of two shareholders are required with Vietnam business formation. | ||||||
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Investors find Vietnam a difficult place to do business because of inconsistent regulations and costs, as well as bureaucracy. In fact, according to a Japanese External Trade Organization recent survey of Japan firms operating in Vietnam, complaints include high utilities costs, office rentals and skilled labour. | ||||||
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Vietnam suffers from a poor international business reputation. For example, Vietnam is negatively perceived as the world's 116th least corrupt country in the 2010 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
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Recently, the Vietnamese government abolished its double pricing system, whereby foreign-invested companies were required to pay higher statutory fees than Vietnamese-invested companies. | ||||||
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A foreign-owned business must submit audited annual financial statements to the Ministry of Finance | ||||||
| 10. | A foreign-owned company is not permitted to distribute imported or domestically-produced goods within Vietnam. | ||||||
| 11. | A Vietnam foreign-owned enterprise requires a minimum of one shareholder and one director. | ||||||
Contact Us |
For more information on Vietnam foreign owned enterprises, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120. |
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