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Business in Vietnam

Business in Vietnam

Business in Vietnam

Business in Vietnam. Kindly note that, in most other countries, a company in Vietnam is only permitted to conduct business activities that are narrowly defined and mostly codified into a published list of business activities called “business lines.”
Generally, with respect to Foreign Invested Company, the permitted business lines must be closely tied to what is considered necessary for its particular investment project in Vietnam.
Business lines shall be the key determinant in possibility of establishment of foreign invested companies in Vietnam.
For instances, with respect to business lines classified to conditional investment sectors such as broadcasting and television and production, publishing and distribution of cultural products, transport and ports/airports, real estate business; import, export and distribution, mining, post and telecommunication, education and trainings, hospital and clinics, tobacco, banking and finance …, foreign investor must satisfy specific conditions to secure success of investment project.

Some notes for Investment Capital in the Vietnam project.
Generally, except for several conditional investment sector such as real estate, finance and banking, education and trainings, there is no requirement for minimum investment capital. However, foreign investor must have enough capital resources to successfully realise the business goals set out in the Investment Certificate.
Investment Capital stated in the Investment Certificate shall include Equity and Loan Capital, in which, the Equity must be at least 20% of total Investment Capital.
In practice, generally, at least 20% of the total investment amount should be contributed as equity (rather than from loans). In the case of a JSC, founding shareholders of JSCs are required to register to subscribe together for at least 20% of the number of ordinary shares offered for sale.

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