Doing Business in Vietnam
Doing Business in Vietnam
July 4, 2019
Vietnam has become an attractive investment destination for various industries such as construction, manufacturing, real estate, energy, retail, tourism and other services. We have draft below a summary on the main information from legal and tax point of views.
The Different forms of investment in Vietnam:
There are different options for foreign investors to do business in Vietnam:
- A representative office, which is the simplest type of structure to start operations, but does not allow to make trading within this kind of structure,
- A limited liability company, which can be a fully owned by a foreign company,
- A joint stock company,
- A partnership.
To select the forms of investment, you need to know the advantages and disadvantages of each of them. To get information, please be free to contact our team to help you to understand the form that corresponds to your objectives.
The process of setting up an investment in Vietnam:
Before setting up a company in Vietnam, foreign investors must obtain an investment certificate from the Vietnamese authorities. The declaration of all foreign direct investment is mandatory, the investor is a natural or legal person.
Different types of documents are required depending on the type of company/business activities that is being set up. All legal documents issued by overseas authorities must be translated into Vietnamese and must be validated by the Vietnamese Embassy in the origin country of the investor.
The main documents are as follows:
- Vietnam investment certificate,
- Vietnam company registration
Taxation in Vietnam:
The Vietnamese tax system includes the following:
- Corporate Income Tax (CIT). The standard rate is 20%. Different rates exist according to the nature of the business,
- Personal income Tac (PIT). The rate fluctuates from 5% to 35% according to the level on personal income,
- Value Added Tax (VAT). There are three types of VAT treatment from 0% to 10% according to the nature of the business,
- Foreign Contractor Withholding tax (FCWT)
- Other different taxes (Customs and duties, Property tax, business license…).
Our team will be happy to answer to your queries and assist you in process of setting up a business in Vietnam.
To get a full brochure of “Doing Business in Vietnam”, please be free to contact our team by email at info@opkofinance.com or by phone at +852 2654 8800.
