Jan. 17 – The new issue of Vietnam Briefing Magazine, titled 100% FOEs, JVs and the Promotion of Supporting Industries, is out now and is immediately available as a complimentary PDF download on the Asia Briefing Bookstore.

For investors looking to make forays into Vietnam, choosing between a wholly foreign-owned enterprise (100 percent FOE) and a joint venture (JV) can have significant implications, as both have their pros and cons and the permissible establishment details (such as percent of foreign capital contributions) for each vary by sector.

As 2012 will be a year of significant change in limitations on foreign ownership regulations for 100 percent FOEs and JVs, this issue offers a clear snapshot of up-to-date regulations and specific changes to expect in 2012, as well as a useful summary of tax incentives and exemptions. Also, a roadmap and timeline for licensing procedures take the guesswork out of this initial step in establishing a business in Vietnam. Continue Reading

Dec. 29 – There is still much potential in the German market for Vietnamese exporters to explore, said participants in a conference held in Ho Chi Minh City on Tuesday.

While Germany has grown into one of Vietnam’s major trading partners since 2007, the current export volume to the European country is still modest compared to the volume of export to China, Thailand and India, noted Do Thang Hai, director of the Trade Promotion Agency at the Ministry of Industry and Trade (MIT). Continue Reading

Dec. 29 – Businesses in Hanoi still owe more than VND4 trillion in taxes this year, and the government has urged them to pay it back.

Thai Dung Tien, deputy head of Hanoi Tax Department, said that around 86.5 percent of the taxes (VND3.5 trillion) is collectable. However, 3 percent of the money will prove difficult to collect and the status of the remaining 10.5 percent is unclear. Continue Reading

Dec. 20 – 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.

According to the draft circular, the Business Registration Management Agency will be responsible for the portal www.dangkykinhdoanh.gov.vn, which provides online registration and other basic registration services for managing national business registrations. To avoid confusion, all other websites launched by businesses or organizations for the same purpose will be blacklisted. Continue Reading

Free App Brings Vietnam Briefing to Your Fingertips

Dec. 16 – The brand new Asia Briefing mobile application brings the latest business news and foreign investment insights from Vietnam Briefing web site right to your fingertips.

The free app integrates with legal and tax regulatory updates from Dezan Shira & Associates, along with China, India, Russia, Mongolia Briefings, and 2point6billon.com (for emerging Asia). With hourly updates, it helps you stay on top of Asia’s dynamic investment environments. Continue Reading

By Lorenzo Martelli

Dec. 14 – Increases in the ownership ratios that foreign strategic partners can hold at Vietnamese joint stock banks, encouragement for the merger of weak banks, and not increasing the chartered capital are the main points of the European Chamber of Commerce (EuroCham)’s proposal when talking about bank restructuring.

Decree No. 69/2007/ND-CP enacted by the Prime Minister in 2007 decided to allow a strategic foreign investor to purchase from between 15 percent to 20 percent stake in a domestic bank, which, however, must not exceed 30 percent of the chartered capital of that bank. Continue Reading

Dec. 8 – Trade and investment between Italy and Vietnam has increased steadily over the last 10 years. According to statistics issued by the Government of Vietnam, Italian FDI projects amounted to US$187 million in 39 projects at the end of 2010. The manufacturing industry still has the biggest share amid Italian FDI, even though other sectors are increasingly showing their interest in the market.

In the wake of a recent successful business mission by 24 Tuscan wineries to Vietnam at the beginning of November, Damiano Francovigh, head of the Economics and Commercial Section of the Italian embassy in Vietnam, shares his vision of the potential cooperation between the two countries. Continue Reading

By Lorenzo Martelli

Manufacturers benefit from lower rent
Dec. 7 – On November 23, 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. According to calculations, under Decree No. 121/2010/ND-CP, the rental fee is paid annually. However, reductions can be applied under some circumstances only. The land rent charge is reduced when such entities:

• Have the proper and lawful use of the leased land;
• Have been subject to statutory increases in land rent charges at least twice in 2010. Continue Reading

Nov. 29 – According to the report East Asia and Pacific Economic Update released by the World Bank on November 21, Vietnam’s gross domestic product (GDP) will increase 6.1 percent next year. The recent forecast confirms Prime Minister Nguyen Tan Dung’s expectations of 6 percent to 6.5 percent growth for 2012, which he announced at the opening session of a biannual meeting of the National Assembly last month.

GDP growth for the first six months of 2011 was 5.6 percent, and it is expected to grow to around 5.8 percent by the end of the year. The forecasted 6.1 percent growth rate for 2012 seems to bear out a new increasing trend that was previously curbed during the 2007-2009 Global Financial Crisis. Continue Reading

By Lorenzo Martelli

Nov. 16 – 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.

According to Decree 101, corporate income tax payable by small-and-medium-sized enterprises will decline by 30 percent this year. Firms in line for tax reductions include those operating in the forestry, agricultural, textile, fisheries, leather, garment, footwear and electronic part production sectors and those contributing to socio-economic development. Continue Reading