How has streamlined the registration procedures for business in Vietnam in 2023?

How has streamlined the registration procedures for business in Vietnam in 2023?

By the end of 2019, more than 30,000 FDI projects with a registered capital of approximately 362 billion USD had chosen Vietnam as their investment destination. As a result of Vietnam's recent focus on the private sector, foreign investors are flocking to the country's market.

How Vietnam Has Streamlined Procedures to Register Business in Vietnam?

Vietnam's participation in various free trade agreements has provided a strong impetus for foreign investors from developed nations to take their first steps in Vietnam. The country has established diplomatic ties with nearly 190 nations worldwide and signed approximately 15 Free Trade Agreements with important trading partners.

Investors must submit an application for the Investment Registration Certificate in order to register a business in Vietnam. The investor must then apply for an Enterprise Registration Certificate after receiving the Investment Registration Certificate.

Investors must first select a business name that is not identical to or confusingly similar to the name of another business that is already registered in the National Database of Business Registration on a national scale. This does not apply to business that have been dissolved or that have had effective court decisions declaring them bankrupt.

The investors or authorized person must then prepare a comprehensive set of application dossiers in accordance with the law and submit them to the Business Registration Office where the planned head office will be located. Based on the appointment date on the receipt, the Business Registration Office will verify the validity of the application dossier. Investors or authorized individuals can either go to the Business Registration Office to receive the application results or register to receive them by mail. After receiving the valid dossier, the deadline for considering and processing it is three working days.

The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:

-The registered business lines are not in the prohibited business sectors;

-The business’s name is set in accordance with the provisions of law;

-Having a head office as prescribed by law;

-Having a valid business registration dossier as prescribed by law;

-Fully paying the enterprise registration fee as prescribed by law

Investors have increased their faith in Vietnam's business and investment climate over time. The socio-political and macroeconomic steadiness are conspicuous highlights for the development of Vietnam's business potential. The Vietnam not set in stone to work on the cycle for speculation application. As a result, Vietnam is and will continue to be an appealing location for investment as well as a promising location for foreign investors to apply for an investment registration certificate and register a business when compared to other countries in the region that are neighboring Vietnam.

ANT Lawyers is a law firm in Vietnam that will always contact the authorities to obtain legal updates on issues pertaining to the registration of investments or the establishment of business in Vietnam. 

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How to Start a Business in Vietnam?

How to Start a Business in Vietnam?

In recent years, Vietnam has become an attractive destination for foreign investment thanks to its advantages of security, political stability, and favorable geographical position to trade with the world. This is both the connection center of the region and the gateway to penetrate the economies in the western region of the Indochina Peninsula. In addition, the Vietnam government has increasingly been offering more preferential policies to create favorable conditions for foreign investors to start doing business in Vietnam.

To start a business in Vietnam, investors first need to choose for themselves an appropriate type of business based on the number of capital contributors, the amount of capital contributed, and the business’s purse. According to the provisions of Vietnam law, foreign individuals and organizations can establish a limited liability company or a joint stock company or a partnership or a private enterprise.

The next issue that needs to be considered is the business line. In order for the company to be able to operate, the company must register the appropriate business lines, related to business activities. If the selected line of business does not require conditions, the enterprise can go into operation after the establishment of the company. This is considered non-conditional business area which most of company would do. However, if the investor chooses a conditional business line to do business, the enterprise must meet the necessary requirements, apply for a business license as prescribed, and then go into operation. This is considered conditional investment area where there are some restrictions being required license, minimum charter capital, foreign ownership ratio…

Investors also need to choose a location for their business, which is legally allowed to conduct business activities. The company address must be located in the territory of Vietnam, and comply with requirement corresponding to purpose of business i.e. company address can not be in an apartment building or a dormitory for living purposes only; factory location has to be at proper zone for industrial purpose…

In order to serve the management of the State and facilitate business activities, newly established businesses need to have their own name and this proper name must be unique, not be the same or similar to previously registered businesses. Enterprises are not allowed to use the names of functional agencies, state management agencies to name the company. The name of the business must include the type of company and proper name. To avoid duplication with other companies, businesses can use abbreviations or English names, but must ensure that the company name will not cause confusion, without adding prefixes, suffixes or cultural symbols in the name of the business.

The investors need to apply for an Investment Registration Certificate at a competent authority in Vietnam. This is a mandatory procedure for all projects that want to establish a new legal entity in Vietnam. The processing time for an investment certificate application is around 30 days depending on the specific project. After being granted an Investment Registration Certificate, foreign individuals and organizations need to prepare an application for an Enterprise Registration Certificate at the Department of Planning and Investment which would take around 7 days. Completing this procedure, the enterprise has the legal status according to the provisions of the Law on Enterprises of Vietnam.

From day one since commencing its operation, the company could by itself or hire professional to assist with monthly compliance service i.e., submit foreign labour reports, submit investment report, submit tax report, submit health and insurance reports to authorities to avoid encountering penalties.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or doing business  in Vietnam.

Source ANT Lawyers : https://antlawyers.vn/library/how-to-start-a-business-in-vietnam.html  

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What Are the Advantage of Foreign Investors in Setting up Business in Vietnam in 2023?

What Are the Advantage of Foreign Investors in Setting up Business in Vietnam in 2023?

Located in an important position of Southeast Asia, Vietnam has a long coastline of more than 3,000 km. With a diverse geographical structure interspersed with mountainous, highland and coastal areas suitable for general economic zones, Vietnam has ideal conditions to develop the trade and tourism industries. When setting up business in Vietnam, investors can enjoy financial advantage such as corporate income tax, import and export tax and land finance incentives.

Incentives on corporate income tax: In recent years, Vietnam has gradually reduced the corporate tax rate (CIT). In the 2004-2008 period, CIT was 28%, in the 2009-2013 period it was 25%, from 2014 to 2015, 22% and from January 1, 2016 until now, 20%. In addition, the provision of high corporate income tax incentives for a number of key fields that need to be encouraged for investment has contributed to attracting investment, encouraging business, creating favorable conditions for enterprises to increase accumulation, increase investment in the economy, and promote growth, hence promoting investors in setting up company in Vietnam.

Import and export tax incentives: The 2016 Import and Export Tax Law has added regulations that high-tech enterprises, science-technology enterprises, science-technology organizations are exempted from import tax on raw materials, materials and components that cannot be produced domestically within 5 years from the date of commencement of production. There are also import and export tax incentives being applied such as:

(i) Exemption from import tax for goods imported for processing for foreign countries and when exporting and returning products to foreign parties, they are exempt from export tax;

(ii) Goods imported for processing that are exempted from tax, goods temporarily imported for re-export and goods being raw materials and supplies in service of the production of exported goods can be extended the tax payment time to 275 days from the date of filing the customs declaration; goods temporarily imported for re-export may be extended the tax payment time to 15 days from the expiration date;

(iii) Exemption from import tax on goods to create fixed assets for investment projects in areas of special investment encouragement, investment promotion fields and investment projects in the locality have difficult socio-economic conditions.

Incentives on land finance: Foreign enterprises investing in Vietnam can be applied adjusted reduce rate (%) calculating the general land rent from 1.5% to 1%. In addition, the State also stipulates the application of the land price adjustment coefficient in determining the land price to calculate the land rent, therefore, making Vietnam increasingly becoming a favourable destination to attract foreign investment and company establishment in Southeast Asia.

In addition, the development of a transparent and consistent investment legal system is increasingly becoming a good tool to promote foreign direct investment inflows into Vietnam in the spirit of the state ensuring the rights of the investors’ ownership, investment capital and other interests of foreign organizations and individuals, creating favorable conditions and simplifying procedures for such organizations and individuals to invest in Vietnam. Compared with the foreign investment laws of some countries in the region, the law on foreign investment in Vietnam is considered by the international public to be more open and attractive, for example applying the form of 100% foreign capital ownership, administrative procedures are simplified, non-discriminatory between Vietnamese enterprises and foreign-invested enterprises. The law has been transforming in the direction of considering investment and business as the matters of enterprises and investors, which the investors have full authority to make decisions from investment projects to the formation and business of the enterprise and that the government only guides, creates an open legal environment, has favorable mechanisms and procedures, supervises and enforce the law.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

Source ANT Lawyers: https://antlawyers.vn/library/what-are-the-advantage-of-foreign-investors-in-setting-up-business-in-vietnam.html  

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How Vietnam Has Simplified Procedures to Register Business in Vietnam?

By the end of 2019, there have been more than 30,000 FDI projects choosing Vietnam for investment, with a total registered capital of about 362 billion USD. Recently, business propensity of Vietnam is highly concentrated on the private sector, attracting foreign investors to the Vietnam market.

As Vietnam has built diplomatic relationship with nearly 190 countries around the world and signed about 15 Free Trade Agreements with important trading partners, Vietnam’s participation in various free trade agreements has created a strong impetus for foreign investors from developed countries to set their first steps in the Vietnam.

To be able to register a business in Vietnam, investors need to carry out procedures to apply for the Investment Registration Certificate. After being granted the Investment Registration Certificate, the investor shall  then apply for Enterprise Registration Certificate.

To carry out the process of applying for the Enterprise Registration Certificate, firstly, the investors need to choose a name for the business, which must not be identical or confusing to the name of another business already registered in the National Database of Business Registration on a national scale, except for businesses that have been dissolved or have had effective court decisions declaring businesses bankrupt.

After that, the investors or the authorized person need to prepare a complete set of application dossiers in accordance with the law and submit it at the Business Registration Office where the head office is planned to be located. The Business Registration Office will check the validity of the application dossier, based on the appointment date on the Receipt, the investors or the authorized person can go to the Business Registration Office to receive the results of the application or Register to receive results by post. The time limit for considering and handling the dossier is 03 working days from the date of receiving the valid dossier.

The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:

-The registered business lines are not in the prohibited business sectors;

-The business’s name is set in accordance with the provisions of law;

-Having a head office as prescribed by law;

-Having a valid business registration dossier as prescribed by law;

-Fully paying the enterprise registration fee as prescribed by law

Over the years, investors have built confidence in the Vietnam’s business and investment environment. The socio-political and macroeconomic stability are prominent features for the growth of Vietnam’s business potential. The Vietnam government has determined to  simplify the process for investment application. Hence, Vietnam is and will continue to be an attractive investment location, a promising destination for foreign investors for applying for investment registration certificate and register a business in Vietnam compared with other neighboring countries in the region.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

Source ANTLawyers: https://antlawyers.vn/library/procedures-to-register-business-in-vietnam.html  

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Japan Increases Investment in Vietnam in Finance and Services

Japanese investors have switched from setting up business in Vietnam in manufacturing into financial investment, retail.

Japan Increases Investment in Vietnam in Finance and Services

• Why Japanese Investors Invest in Vietnam?
• Three Reasons Japan Invests in Vietnam
• Why Japan Will Increase Investment in Vietnam

Til end of Jan 2015, Japan is the second largest foreign investors in Vietnam in direct investment form with 2,494 projects, and total registered capital of nearly 36.9 billion USD however there have been changes in the structure of the investment capital in Vietnam.  In particular, the manufacturing sector once accounted for the largest proportion of investment in Vietnam drops 30% from nearly $ 1.2 billion in 2013 to nearly 830 million 2014.  In fact, the projects in the manufacturing sector often require huge capital during a long-term investment.  In the context that Japan's economy faces difficulties as well as the global economy is not bright, the reduction of investment in the manufacturing sector is also understandable.

In indirect foreign investment in Vietnam, Japan ranks sixth in the list of countries conducting M&A in Vietnam with more focus on small or medium but long-term and potential large area.  The field of production only accounts for 10% of the total value.

However, the recent survey has shown there is a new wave of Japanese investment in other sectors such as construction, real estate, transportation or financial investment.  The report of The Japan External Trade Organization, or JETRO, a Japanese government-related organization that promotes trade and investment reflects the proportion of new investment projects in the construction, real estate increased from 3% in 2013 to 6% in 2014, while the capital had risen to 13%, compared with 2 % of a year ago.

In real estate sector, Tokyu Corporation has joined invested with Becamex IDC to develop Tokyu Binh Duong Garden City in an area of ​​over 110 hectares with a total investment of about USD 1.2 billion. Daibiru Corporation also acquired the office building Corner Stone in Hanoi with value of the deal at USD 60.1 mil.  These are example that Japanese investors recognizing the potential development of Vietnam’s changes in real estate market as the land ownership have been approved and effective from Jul 2015. As reported, M&A deals in real estate in 2014 accounted for 61% of M&A deals.

In financial investment, in 2014, Daiwa PI Partners and Vietnam Opportunity Fund of Vina Capital invested USD 45 million in the International Dairy Joint Stock Company, making foreign ownership increase to 70%.

In retail sector, Vietnam is also considered as an attractive market with growing mid-income consumer group. The largest retailer Aeon Japan after years of market research has poured more than USD 500 million for two commercial centers were opened in Ho Chi Minh City, Binh Duong and a new center in Long Bien (Hanoi).  The group also plans to expand through acquiring shares of two local supermarket being Fivimart and Citimart.

It appears that Japan is holding strong among the leading investors in Vietnam, together with Korea and Singapore.

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ANT Consulting is here to assist you from the outset; providing intelligence, information, management or support and administrative services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Market Entry
• Tax Advice
• Legal Advice
• Outsourcing Services

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779.  To learn more about us, please visit www.antconsult.vn

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Vietnam Supports Australian Enterprises Investing and Setting-up Business in Vietnam

DURING AN OFFICIAL VISIT TO AUSTRALIA, IN THE MORNING OF MARCH 17TH (LOCAL TIME), IN SYDNEY, PRIME MINISTER NGUYEN TAN DUNG AND HIGH-LEVEL DELEGATION TO THE GOVERNMENT OF VIETNAM HAD THE DIALOGUE WITH THE BUSINESSES OF VIETNAM AND AUSTRALIA’S ON THE DEVELOPMENT OF VIETNAM’S ECONOMY AS WELL AS THE OPPORTUNITIES, PROSPECTS FOR COOPERATION BETWEEN THE TWO COUNTRIES.

Vietnam Supports Australian Enterprises Investing and Setting-up Business in Vietnam

The dialogue of Prime Minister Nguyen Tan Dung has attracted the participation of hundreds of large enterprises of Vietnam and Australia in the areas of banking, finance, energy, oil and gas, mining.  Prime Minister Nguyen Tan Dung has directly answered many questions of the businesses, Australian investors relating to prospects, opportunities to promote and enhance the intrinsic comprehensive partnership between Vietnam and Australia.

Prime Minister Nguyen Tan Dung has generalized the development of Vietnam’s economy from an underdeveloped country with a closed economy and until now Vietnam has become a middle-income country with a dynamic economy, enter into the regional economy and the world’s.

Vietnam achieved GDP growth of nearly 6% in 2014. Until now, registered aboard direct investment capital is up to nearly $ 300 billion, with nearly 18,000 projects from more than 100 countries and territories. Currently, there are over 100 leading corporations investing and set-up business venture in Vietnam.

The Prime Minister stressed: “To attract more powerful, more efficient foreign investment, the Government of Vietnam will continue to fulfill its smooth operation and economic institutions in Vietnam market, compete equally between domestic firms and foreign firms as committed international integration of Vietnam.

Vietnam confirms continuing international economic integration deeper through the full implementation of its commitments in the WTO and bilateral free trade agreements as well as other multilateral ones. Currently we are implementing 8 free trade agreements and negotiations and will continue to expand the market, open market with other free trade agreements, especially the new generation FTA with high requirements to create competitive business environment in the ASEAN region and create a legal framework consistent with international business practice in the market of Vietnam … “

Prime Minister Nguyen Tan Dung also said that Vietnam is focusing on the three breakthrough strategies to facilitate the attraction of investment and development, business and promote economic development, which is perfect institutional market economy as well as investment in infrastructure development and training human resources, especially human resources quality.

Vietnam also continues to ensure political and social stability and protects the legitimate rights and legality of investors, including domestic and foreign; and continue to improve the rule of law, ensure and promote strong democratic liberties of the people, both economically and politically.

Prime Minister Nguyen Tan Dung has listened and directly answered many of the questions of businesses, Australian investors relating to prospects, opportunities to promote and strengthen comprehensive partnerships between Vietnam and Australia especially to promote cooperation in the field of competitive advantage, such as mining, energy, chemicals, agriculture, finance, banking, education and high quality services.

Government of Vietnam also supports Australian businesses involved in the process of restructuring the economy of Vietnam, especially in the strong field of Australia such as energy, telecommunications infrastructure, education – training, agricultural business and finance.

If you wish to explore investment opportunities in Danang, or set-up company, business in Ho Chi Minh City in particular or in Hanoi or in Vietnam in general, please contact us via email ant@antconsult.vn or call our office number: +848 35202779 (HCMC) or +844 39388751 (Hanoi).

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