So, you want to expand your business presence in Vietnam. How? For starters, you can open up a representative office (RO) in the country, which would get your foot in the door when it comes to exploring the market and conducting business. However, in Vietnam (as in most countries), an RO is limited in its range of operations and is typically used as a stepping stone to test the water before a company decides to establish a legal entity with a larger scope of business, such as a joint venture or a 100 percent foreign-owned entity.
So how do you make the jump from an RO to a 100% FOE? Take a look into your RO’s operations before deciding what your next move will be. Upgrading the office may be the right answer for you – as an RO can easily be upgraded to increase its scope of activities to align more closely with your company’s goals and to further your business’ game plan. Or, if that’s not in line with your company goals, you can just as easily decide to close up shop.
With these considerations in mind, this issue of Vietnam Briefing examines ROs - the processes of working with them, and the rationale for either upgrading or closing them. We explain not just how to close up your RO, but also list out the common reasons for doing so. In addition, we include detailed instructions and timelines on how long it takes to upgrade or close up shop. In conclusion, we also summarize how to set up an RO in the country for businesses looking to get started in the market.
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As many international manufacturing enterprises are now looking to expand or relocate their China operations into alternative markets to capture new opportunities or hedge their China risk, the search is currently on to find Asia’s new emerging market darling for foreign investment. In this area, one of the most talked-about regions offering promising prospects is the Association of Southeast Asian Nations (ASEAN). And what better place to start than Vietnam – an already booming Southeast Asian nation.
Vietnam, home to a conducive, established and evolving business environment, offers many attractive advantages for foreign businesses, including a number of preferential policies and tax incentives, free trade status within the thriving ASEAN region and a variety of economic zones and industrial parks with an abundance of low-priced labor.
As the ASEAN region pushes for more enhanced free trade between its 10 member states, Vietnam is poised to grow into an even more attractive location for your business and manufacturing endeavors. Connected to a host of constantly growing and evolving economies nearby, a number of Vietnamese industries and businesses are in a unique position to benefit not just from intra-ASEAN trade but also through the multitude of free trade and double tax agreements ASEAN has with various nations throughout the world.
In this issue of Vietnam Briefing Magazine, we introduce our readers to manufacturing in Vietnam as a key part of their business strategy within the ASEAN region and beyond. Specifically, we explain the new ASEAN Free Trade Area, outline what foreign investors can look forward to when creating their manufacturingpresence in the country, and introduce the country’s key tax points.
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