Foreign investment consulting is a practical and necessary field for foreign investors' investment activities in Vietnam. With the extensive knowledge and practice experience of the lawyers, foreign investment consulting services provide a guarantee and peace of mind for investors in all aspects of the investment process in Vietnam. From the issuance of investment certificates, change of investment certificates, establishment of 100% foreign-owned companies, branches and representative offices of foreign companies to internal issues of enterprises with Foreign investment capital
Vietnam is the third largest market in Southeast Asia. The country is also one of the fastest growing economies in the world. There are many reasons for foreign investors to participate in this attractive market.
In parallel with improving and promoting economic growth, Vietnam in recent years has continuously made efforts to create major reforms to strengthen its legal framework.
Vietnam's legal system is highly appreciated for its openness in the investment environment, transparency in investment policies and a lot of encouragement and support for the investor and business community.
The Investment Law and the Enterprise Law 2020 are the key documents to regulate the activities of enterprises and investment activities in Vietnam. These documents allow individuals to freely participate in permitted business areas, and it also eliminates a lot of unnecessary administrative procedures to ease the burden on businesses. For foreign investment, these laws also create a lot of favorable conditions for investors when conducting investment activities in Vietnam.
Vietnam offers a lot of tax incentives for business organizations in this country. Newly registered investment projects can enjoy tax incentives based on the field, location and size of the project.
Taxpayers who are eligible for tax incentives can benefit greatly from the Preferential Tax Rate and the Tax Exemption Period. For example, for investment projects located in industrial parks or high-tech zones, investors can enjoy a preferential tax rate of up to 10% for 15 years and tax exemption for 4 years. continuously with a 50% tax reduction for the next 9 years.
Vietnam in recent years has been very active and actively participating in many free trade agreements, both bilateral and multilateral. Some important agreements can be mentioned as: Agreement on economic union Vietnam - Japan (20008); Vietnam - Korea Agreement (2015); The EU-Vietnam Free Trade Agreement (2019)...
This not only helps Vietnam to quickly integrate into the world economy, but also creates a great incentive for investors from developed countries to direct their investment intentions into the Vietnamese market.
There is no minimum capital requirement to set up a business in Vietnam. However, you need to show a reasonable amount of money to prove your financial ability for the investment project you want to make in Vietnam. In addition, the amount of capital you invest must be enough to cover the operating costs of the investment project until your business is profitable
Forms of foreign investment in Vietnam
According to the provisions of Article 21 of the Investment Law 2020, investment in Vietnam will take place in the following forms:
1. Investment in establishment of a business organization.
2. Investment in the form of capital contribution or purchase of shares or stakes.
3. Execution of an investment project.
4. Investment in the form of a business cooperation contract.
5. New forms of investment and types of business organizations prescribed by the Government's regulations.
In consulting activities for foreign investors, NPLaw will perform the following tasks:
- Comprehensive consulting on legal issues and investment policies in Vietnam;
- Consulting on selection of investment locations;
- Consulting to choose investment form suitable to the needs of investors;
- Consulting business lines/project objectives in accordance with each investment area according to the needs of foreign investors;
- Consulting on tax declaration, accounting regime, procedures for opening bank accounts, buying invoices for foreign-invested enterprises.
- Consulting procedures for temporary residence registration for foreign investors;
- Consulting investment forms for foreign investors
- Consulting investment procedures for foreign investors
- Consultancy on procedures for leasing land to implement investment projects
- Consulting preferential policies, investment support for foreign investors
- Consulting on setting up investment projects, registering investment policies for investors
- Consulting documents for issuance of investment certificates to foreign investors
- Advising on procedures for granting, adjusting and transferring Investment Certificates and investment projects to investors.
Common difficulties when investing in Vietnam
In addition to the above advantages, investing in Vietnam also encounters certain obstacles.
1. High corporate tax for some investment sectors
Although the general tax rate that Vietnam applies to businesses is 20%, in some specific business lines, this tax rate can be much higher.
Under the Corporate Income Tax Law, companies conducting activities related to mining, gas and other rare natural resources will be subject to tax rates ranging from 32 to 50%, depending on location and nature of the project.
2. Restrictions on foreign currency
Investment capital in foreign currency must be converted into Vietnam Dong, the official currency in Vietnam. In addition, other transactions of enterprises such as stock trading, contract payment, services, advertising, etc. must also be conducted on the basis of Vietnam dong.
3. Requirements for business establishment
Investors must be prepared to face many requirements in setting up a company in Vietnam. For example, the actual amount of capital contributed to an investment project must be at least 10,000 USD, and depending on the type of business, this amount can be lower or higher.
In addition, the licensing procedures are also a huge challenge for investors in conditional business lines. To be granted a license to operate in these fields, investors will often have to present a lot of additional documents, such as a qualified business certificate, professional liability insurance...
Above is an article about Foreign Investment Consulting. Ngoc Phu Law Firm specializes in providing comprehensive legal services professionally related to domestic and foreign investment; Enterprise; Real estate; Intellectual Property; Labor; Consulting, drafting, negotiating and supporting the signing of commercial contracts, domestic and foreign service contracts; Consulting and assisting in the process of applying for sub-licenses,.. With a team of professionally trained lawyers and specialists, we are qualified to advise and support clients to carry out their tasks. this procedure.
NPLAW FIRM
Head office: 139H4 Ly Chinh Thang, Vo Thi Sau Ward, District 3, Ho Chi Minh City
Nha Trang office: 3M, The Ground of Apartment CT2, VCN Phuoc Hai, To Huu Street, Phuoc Hai Ward, Nha Trang City, Khanh Hoa Province
Hotline: 0913449968
Email: legal@nplaw.vn
