For investors looking to make forays into Vietnam, choosing between a wholly foreign-owned enterprise (100% FOE) and a joint venture (JV) can have significant implications, as both have their pros and cons. This article explores these two types of enterprises, their limitations and their licensing procedures.
Supporting industries play a key role in promoting the development of main industries in Vietnam. Furthermore, Vietnam has great potential in developing service industries, given its strengths in
labor availability and absorption of new technologies. As such, the Vietnamese government recently issued a number of policies to encourage supporting industries, especially those connected to high-tech.
The Ministry of Planning and Investment (MPI) of Vietnam has recently drafted a circular pertaining to an online registration initiative for start-up businesses that aim to streamline the establishment process.
The Vietnamese Government issued Decision No. 2093/QD-TTg to reduce businesses' land use rental costs for 2011 and 2012. A 50 percent reduction in rentals for leased land will be enjoyed by firms conducting manufacturing businesses.
On November 4, 2011 the government enacted Decree 101/2011/ND-CP presenting tax incentives to help enterprises and individuals survive in the current high level of inflation in Vietnam.
Decision 54/2011/QD-TT inked by the Prime Minister agrees to extend corporate income tax payments in 2011 for labor-intensive companies as well as select co-operatives.
On February 24, 2011, the Vietnamese government issued Decision No.12/2011/QT-TTg pursuant to the Prime Minister’s Decision No. 49 10/QT-TTg of July 19, 2010, approving the list of prioritized high technologies. The Decision took effect on April 15, 2011.
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at vietnam@dezshira.com, download our corporate brochure or visit at us www.dezshira.com
