Get legal advice to start your business in Vietnam
Vietnam has major attractions for foreign investors wishing to do business in Vietnam. With Vietnamese-Attorney.com, get legal advice from lawyers in Vietnamese investment law to secure your investment projects in Vietnam.
Why do business in Vietnam?
Doing business in Vietnam by choosing direct investment abroad is a source of various assets:
- Lowering protectionist barriers: the company has direct access to the local market and thus bypasses all tariff barriers or non-tariffs Vietnam has raised
- Minimisation of costs: labour is very cheap, the cost of living is low and transport costs are reduced
- International competition: the foreign investor can control more market share globally. Vietnam has in this sense a vast market of 90 million inhabitants and domestic consumption proves sustainable
How to do business in Vietnam?
There are three main ways to do Vietnam business:
- The cooperation agreement: the business cooperation contract (BCC) is an agreement under which one or more foreign parties and one or more local parties agree to work together to achieve one or more economic operations by agreeing to share profits and revenues. This form of investment is a contract, it does not result in the creation of a corporation. There were 228 BCC contracts in force identified in Vietnam in 2015. There is also the partnership contract, but this form is very little used in Vietnam and only 14 partnership agreements were concluded in Vietnam in 2015
- Mergers and Acquisitions: once limited to certain sectors, foreign investors can now carry out mergers and acquisitions in almost all areas. We have seen an easing of the administrative procedure for the acquisition of Vietnamese companies by foreign investors
- Starting a business: foreign investors can also start a business as a joint venture or a 100% foreign company. The form of a 100% foreign-owned company would be preferred.
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