Vietnam is a country that possesses many competitive advantages when becoming an attractive destination for foreign investors with a booming economy, bringing many investment opportunities. Why is Vietnam chosen as an attractive investment destination? Although the Vietnamese…
About this article
This article provides general information and does not replace legal advice for a specific case.
Vietnam has a fast-growing economy and many competitive advantages. As a result, the country has become an attractive destination for foreign investors and offers many investment opportunities.
Why do investors choose Vietnam as an investment destination?
The Vietnamese market offers attractive business opportunities, but foreign investors must also understand the legal difficulties and risks involved. If investors do not take these issues into account, they can become serious obstacles for the business. The key points to consider before investing in Vietnam are set out below.
1. Investors need to choose the right legal entity
Investors choose the form of entity according to the nature and size of their business. For example, a foreign investor can choose a foreign-invested company (usually a limited liability company, LLC), a representative office, a trust company or a shell company.
An LLC is easy to establish. However, if you own a medium-sized or large business, a joint stock company (JSC) is likely to be the better structure.
Types of enterprise under current Vietnamese law
2. Investors need to rent an office before registering the company
Unlike a domestic company, a foreign-owned company must include documents on its office in the incorporation application. Investors therefore need to rent an office before they submit the application. Under Vietnamese regulations, the office can be a physical office or a virtual office.
Advantages of registering a company at a virtual office
3. The line of business determines the investment conditions
Wholly foreign-owned enterprises currently face restrictions on their business activities. Some lines of business are closed to foreign enterprises, and others are open only if the enterprise meets certain business conditions. Investors need to know which activities are fully or partly open to them, which are prohibited and which conditions apply, so that they can make the right decision.
Conditional business lines for foreign investors in Vietnam
4. The incorporation documents must be prepared in full
Preparing the application is not simple, because the required documents depend on whether the investor is an organisation or an individual. In addition, documents issued abroad usually need consular legalisation. Investors should therefore prepare a complete set of documents so that the procedure runs efficiently and on time.
Documents required to set up a company in Vietnam
5. Investors should choose the right adviser
Tin & Partners knows the Vietnamese market well and has in-depth experience in registering and setting up businesses in Vietnam. Our end-to-end services are particularly useful if you are not yet familiar with the rules on setting up and operating a business.