Country Trading Profiles Vietnam

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Private company No minimum	1 member Unlimited to the owner
Limited Liability Company No minimum	Minimum 2 partners. Maximum: 50. Liability is limited to the contributions.
Joint-stock company No minimum	Minimum 3 partners Liability is limited to the contributions.
Partnership No minimum	At least 2 co-owners Unlimited to all partners

Business setup procedures

Setting up a company	Vietnam	East Asia & Pacific
Procedures (number)	9.0	7.8
Time (days)	44.0	39.0

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Viet Nam.
Company Registration Office
The competent organization: The State Committee for Co-operation and Investmen is the organisation where status must be registered.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	8,050	7,600	8,173
FDI stock (millions USD)	48,325.3	57,454.3	65,627.7
Performance Index*, ranking on 141 economies	29	41	-
Potential Index**, ranking on 141 economies	75	-	-
Number of Greenfield investments***	348	255	-
FDI inwards (in % of GFCF****)	25.5	11.8	-
FDI stock (in % of GDP)	53.0	51.9	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Vietnam

Strong points: The country's strong points are:
- Positive economic prospects in terms of growth, despite the global crisis;
- A young, cheap, rapidly growing and more and more techonologically qualified manpower;
- A certain social-political stability;
- A government committed to liberalizing the economy and to introducing reforms based on the free market.
Weak points: The country's weak points are:
- Weak financial structure. Although it is undergoing reforms, the financial sector is neither well regulated nor independent of the government;
- The lack of guarantees for property rights;
- A high level of corruption.

Foreign investment is subject to an array of unclear regulations, which cannot be legally guaranteed. The judiciary is subject to political influence, and commercial cases often take years to be resolved.
Government measures to motivate or restrict FDI: The promotion of foreign investments is part of the country's development strategy. Therefore, the government has never stopped perfecting its judicial system, creating more incentives and taxation policies for foreign investors and trying to respect its commitments with regard to the international community. "Business forums" are frequently organized between the Vietnamese government and the private sector, these being opportunities for foreign investors to establish fruitful dialogue and to assert their interests. Additionally, Vietnamese efforts to maintain socio-political stability and set up and professionalize investment promotion activities also play a crucial role in increasing the FDI flow.

Procedures relative to foreign investment

Freedom of establishment: The Government has relentlessly perfected its legal system, created more incentive policies for foreign investors and tried to fulfill its commitments to the international community. Besides, Vietnam's efforts to maintain its socio-political stability and step up and professionalise investment promotion activities also play a crucial role in increasing the FDI flow.
Acquisition of holdings: Yes
Obligation to declare: It's obligatory to declare any FDI.
Competent organization for the declaration: Ministry of Foreign Affaires
Ministry of Planning and Investment
Requests for specific authorizations: Preferential investment field
Investment field with conditions
Investment - banned field

Finding assistance for further information

Investment aid agency: Department of Planning and Investment
Vietnam Trade Promotion Agency
Other useful resources: Ministry of planning and investment