Local business incentives
The nature of aids and incentives will vary depending on the place of settlement in Vietnam. There are two types of free trade zones in Vietnam: the EPZ (Export Processing Zones) and the IZ (Industrial Zones). The EPZ ar intended for goods production and exports. Whereas the IZ focuses on the export of manufactured goods and the production of local products. Incentives are mainly export taxes exemptions, reduction on the company tax rate and reductions on various taxes. Foreign investors can contact the
Legal forms of companies
| Form |
Number of partners/shareholders |
Minimum and/or maximum capital |
Liability |
Registration fee |
Release of financial documents |
|
Individual company
|
1 member
|
300 million of Dongs
|
Indefinite responsibility
|
0.01% of the capital
|
Yes
|
|
Private Limited Company
|
Minimum 2 partners
|
600 million of dongs
|
Liability is limited to the contributions.
|
0.01% of the capital
|
Yes
|
|
Joint-stock company
|
Minimum 7 partners
|
500 million of dongs
|
Liability is limited to the contributions.
|
0.01% of the capital
|
Yes
|
Registration and licensing procedures
The Committee of State for Co-operation and Investment (THIS) is the organisation where status must be registered.
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Foreign exchange control
In accordance with the law on exchange controls, any exchange transaction of Vietnamese Dong in foreign currencies must be, first, authorized by the Central Bank. Vietnamese Dong is not totally convertible. Foreign investors have the right to transfer capital and profits. However, the MPI's approval is required in order to carry out transfers with an amount superior to the initial capital and to the reinvested capital.
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Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Vietnam.
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FDI inflows in Vietnam
| FDI inflows (millions US$) |
2000 |
2001 |
2002 |
World rank |
| Foreign Direct Investments (F.D.I.) |
1200
|
1450
|
1610
|
47
/ 196 |
| Sources : UNCTAD Database FDI/TNC |
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Last modified in
December 2003
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