Investment in Vietnam market
Nowadays, Vietnam is gradually recognized as an open market to attract foreign investment. By self-improving its infrastructure and public facilities, as well as being a member in certain international treaties to build-up cordial relationship with other countries and territories all around the world, Vietnam turns itself to become an ideal and strategic market for foreign investors wishing to expand their business in APAC region.
Input the presence in Vietnam market by either establishing a company or other investment vehicles is an important step for many foreign investors, and hopefully the commencing of a successful business undertaking.
Committed in several mutual international treaty or association, Vietnam promulgates Law on Investment (LOI) and Law on Enterprise (LOE) as the legal basis and law guideline for implementing investment in Vietnam. In brief, certain conditions should be qualified:
- investment in the proposed line of business is not prohibited
- the application for investment registration and business registration are under the validity in according to provisions set out in LOI & LOE
- the name of the enterprise in Vietnam is not identical to that other registered enterprise’s name as well as comply with naming convention in LOE
When establishing a new enterprise with 100% foreign-invested capital owned by foreign investors (hereby refer to establishing a FDI), Investment project should be well-prepared and submitted along with the application for undertaking investment project in Vietnam market. Upon receiving the approval from the competent authority, Investment Registration Certificate (IRC) shall be issued to acknowledge and allow foreign investor to undertake the investment project in Vietnam. Obtaining Enterprise Registration Certificate (ERC) in later stage, in the other hand, will accomplish the business registration in Vietnam as completing the legal status of Vietnam-based enterprise carrying out the business scope in light with proposed investment project mentioned above.
The expected timeframe to obtain IRC is fifteen (15) working days limited from the date submitting the complete and valid application dossier, whilst obtaining ERC is five (5) working days thereafter. For emphasis, establishing a FDI should be straightforward from IRC to ERC respectively. Investment into Vietnam under alternative vehicle would be discussed separately.
The illustrative chart is below for an overview on the timeframe for establishing a FDI
(*) The set-out timeframe above is achieved when all goes well. The delay might be expected for the application dossiers amendment and from specific requirement by the competent authority.
