{"id":6100,"date":"2019-04-16T08:51:26","date_gmt":"2019-04-16T08:51:26","guid":{"rendered":"http:\/\/localhost\/test_manager\/expand-your-business-in-vietnam\/"},"modified":"2019-07-09T06:23:54","modified_gmt":"2019-07-09T06:23:54","slug":"expand-your-business-in-vietnam","status":"publish","type":"post","link":"https:\/\/managersoffice.net\/el\/expand-your-business-in-vietnam\/","title":{"rendered":"Expand your Business in Vietnam"},"content":{"rendered":"<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>ECONOMY<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Vietnam is a densely-populated developing country which has had to recover from the ravages of war in the last 35 years. Growth averaged around 9% per year from 1993\u20131997. The 1997 Asian financial crisis highlighted problems in the Vietnamese economy and temporarily allowed opponents of reform to slow the progress towards a market-oriented economy. Gross domestic product (GDP) growth of 8.5% in 1997 fell to 6% in 1998 and 5% in 1999. Growth then rose to around 7.5% in 2000\u201306 even against the background of global recession, making it the world\u2019s second-fastest growing economy. Simultaneously, investment grew three-fold and domestic savings quintupled.<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>LEGAL SYSTEM<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Vietnam uses a civil law system which is based on written laws. The hierarchy of the legal System in Vietnam can be simply classified into three basic layers in term of its governing scope and level:<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">1) The National Assembly issues the constitution, laws, codes and resolutions; the National Standing Committee issues ordinances and resolutions<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">2) Legal instruments are issued by the central executive and justice bodies, including:<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">\u2212 Decisions and mandates of the state president<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">\u2212 Decrees and resolutions of the government<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">\u2212 Decisions and directives of the prime minister<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">\u2212 Decisions, directives and circulars of ministers and equivalent levels<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">\u2212 Resolutions of the Supreme Court Judge\u2019s Council and other legal instruments of the Supreme Procuracy<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">3) Resolutions of the People Councils and decisions and directives of the People\u2019s Committees.<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>FOREIGN EXCHANGE MARKET (FOREX) CONTROLS<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Vietnam imposes strict control over foreign currency. Foreign investors who wish to transfer capital in foreign currency into Vietnam must open a specialised foreign currency bank account at a legal bank in Vietnam. Foreign currency remitted into Vietnam by foreign investors must be converted into Vietnamese dong or deposited in a foreign currency bank account.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Payment made by enterprises in foreign currency can be implemented in certain cases as described by the State Bank of Vietnam (SBV), such as:<\/span><\/span><\/p>\n<ul>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Payment for imported goods and services<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Remittances abroad by foreign investors of invested and reinvested capital<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Profits earned from an undertaking in Vietnam<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Principals and interest of off-shore loans and credits, and other legal benefits<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Payment for travel allowances to employees travelling abroad, payment of salaries and other legal income of foreigners.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>STOCK MARKET<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The stock market is a new and exciting way to invest in Vietnam. Vietnam has two stock exchange centres, one in Ho Chi Minh City (HCMC) and the other in Hanoi. Although establishment of these stock exchange centres was decided in 1998, the Ho Chi Minh stock exchange officially began operations in July 2000, earlier than the Hanoi centre, which commenced in March 2005.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">As at the time of writing, there were 401 companies listed on the Hanoi Security Trading Centre exchange and 315 on the Ho Chi Minh stock exchange.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Required documents for registration of a business in Vietnam are specified by the Law on Enterprises 2005 and newly issued decrees. The Law on Enterprises is due to be amended in 2015.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">These regulations are characterised by openness, ease and flexibility. According to these regulations, the founder of an enterprise has to submit all of the enterprise registration documents as prescribed by the statutory regulations to an authorised business registration body. Enterprise registration comprises both the business registration and tax registration procedures. The business registration body will consider the enterprise registration documents and issue an enterprise registration certificate within five business days.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"> The enterprise registration certificate is now both the business registration certificate and tax registration certificate. If the business registration certificate is refused, the founder of the enterprise will be notified in writing. The notice must specify the reasons and the amendments or additions required.<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>PARTNERSHIPS<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Required registration documents for a partnership are similar to those for a private enterprise except for the addition of the draft charter of the company. A partnership must have at least two unlimited liability partners. Additional limited liability partners could also be in a partnership but are only liable in principle to the extent of their capital contribution.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Partnerships cannot issue any type of security. Unlimited liability partners cannot be owners of a private enterprise or an unlimited liability of another partnership. Activities carried out by an unlimited liability partner beyond the scope of the registered lines of business of the company shall not fall within the company\u2019s liability, unless such activities are approved by the other partners.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>LIMITED LIABILITY COMPANIES<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Required registration documents for a limited liability company are similar to those for a partnership except for the addition of legal documentation for organisation members.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">A limited liability company cannot have more than 50 members. All members are liable to the extent of capital they contributed to the company. Members\u2019 shares are transferable but have lower liquidity as stock. Limited liability companies cannot issue shares.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">One-member limited liability companies share similar conditions except in the event of withdrawing or assigning charted capital. One-member limited liability companies are also not able to withdraw profits of the company in cases where the company has not paid in full all debts and other property obligations which become due. In order to carry out such activities, the law requires the company register to be converted into a multiple members limited liability company within 15 days of such an assignment or withdrawal.<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>FOREIGN COMPANY BRANCHES<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Foreign corporations and foreign traders are entitled to set up a trading branch in Vietnam if having a business registration or certificate of incorporation granted in their country for at least five years.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The business scope of a trading branch is limited to the following:<\/span><\/span><\/p>\n<ul>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Goods locally bought for export \u2013 handicrafts; processed\/unprocessed agricultural products (except rice and coffee); processed\/unprocessed fruits, consumer\u2019s industrial commodities, animal and poultry meats and processed foodstuffs<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Goods imported for local sale \u2013 machinery and equipment for mining; processing of agricultural products; input materials for production of human treatment drugs and animal drugs; input materials for the production of fertilizers and insecticides.<\/span><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>TYPES OF TAXES<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">According to the prevailing tax law system, Vietnam has the following taxes:<\/span><\/span><\/p>\n<ul>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Corporate income tax<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Personal income tax<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Foreign contractor tax<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Special sales taxes<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Import\/export tax<\/span><\/span><\/li>\n<li><span style=\"color: #000033;\"><span style=\"font-size: small;\">Technology transfer tax.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Land use tax and fees are very small.<\/p>\n<p><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>IMPORT\/EXPORT DUTIES<\/strong><\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Import and export tariffs are frequently amended to satisfy the state\u2019s requirements on import and export management.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Import tariffs include:<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">1) A preferential tariff applicable to countries which apply the \u2018Most Favoured Nation\u2019 (MFN) treatment to Vietnam<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">2) A special preferential tariff applicable to countries which apply a special treatment on tariffs for imports from Vietnam<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">3) A normal tariff up to 150% of the preferential tariff.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">Although there are three levels of import tariff, preferential tariffs apply to almost all countries which have trading relations with Vietnam. Duty prices are determined in accordance with the rules of the General Agreement on Trade and Tariffs (GATT) adopted by the government.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The importation of commodities to create fixed assets for investment projects in domains entitled to import duty preferences or in in geographical areas entitled to import duty incentives, and investment projects funded with official development assistance (ODA) are exempted from import duties.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The importation of raw materials, supplies and accessories which cannot yet be domestically produced and are imported for production activities of investment projects which are located in areas having special difficult socio-economic conditions and are within special preferential investment sectors, shall be exempted from import duty for five years from the commencement of production.<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\">The new regulation removes the preferential treatment of duty exemption with respect to imported goods of BOT enterprises and sub-contractors for the execution of BOT, BTO or BT projects, including equipment and machinery imported to create fixed assets and special-use means of transport included in technological lines to create fixed assets etc.<br \/>\n<\/span><\/span><\/p>\n<p><span style=\"color: #000033;\"><span style=\"font-size: small;\"><strong>Manager\u2019s Office<br \/>\nFinancial Dept<\/strong><\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>A limited liability company cannot have more than 50 members. All members are liable to the extent of capital they&hellip;<\/p>","protected":false},"author":1,"featured_media":7572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":""},"categories":[153],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Expand your Business in Vietnam - Manager&#039;s Office<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/managersoffice.net\/el\/expand-your-business-in-vietnam\/\" \/>\n<meta property=\"og:locale\" content=\"el_GR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Expand your Business in Vietnam - Manager&#039;s Office\" \/>\n<meta property=\"og:description\" content=\"A limited liability company cannot have more than 50 members. 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