Once a company makes a profit and is able to meet the basic requirements for remittance as mentioned in our introductory article, challenges will remain with respect to ensuring that the remittance process goes smoothly. Whether it be a decision over the method of repatriation or when to take profits, the ways in which investors choose […]
Air pollution levels in Vietnam the past few weeks have reached alarming levels, prompting the government to issue advisories asking people to stay indoors and limit outdoor activities. While it is common to see people wearing face masks, the advisory mentioned that masks should be worn along with eye glasses when outside. It further warned […]
In August, the Ministry of Finance issued Circular No. 43/2019/TT-BTC (“the Circular”), passing new guidelines on incentives for investments in at industrial or economic zones stated in Decree No. 82/2018 / ND-CP. The reform took effect on August 26, 2019. The Circular provides details on tax incentives for enterprises that have investment projects in Vietnam’s industrial and economic zones, encouraging them to make investments that […]
Vietnam’s Ministry of Finance issued Circular No 47/2019/TT-BTC reducing enterprise registration certificate (ERC) fees or business registration fees by half. The new circular went into effect on September 20. The new ERC rates As per the circular, the fee for issuance, re-issuance and changing information for an ERC has been changed to US$2.14 (50,000 VND) from the earlier US$4.28 (100,000 […]
As Vietnam continues to attract record levels of foreign investment, the need to understand the country’s remittance policy has never been greater. Government bodies and banks play an integral role in the remittance process. While remitting is typically not a problem, foreign investors should note and account for restrictions that may result in liquidity issues. […]
The Vietnamese government’s new regulations on foreign exchange took effect on September 6. Circular No 06/2019/TT-NNN (“Circular 6”) now governs foreign exchange in foreign investment activities in the country. As per Vietnam law, any transaction that is related to direct or indirect investment transaction by a foreign investor must be implemented by an investment capital account opened in […]
Vietnamese Foreign Minister, Anh Dung, has stated that he wishes to see Vietnam-Russia bilateral trade hit the US$10 billion mark next year, among growing positive results after Vietnam agreed a free trade agreement (FTA) with the Russian-led Eurasian Economic Union (EEU) in 2016. The Eurasian Economic Union is a free trade area that includes Russia in addition to Armenia, […]
The government recently issued two regulations to help and incentivize small and medium-sized enterprises (SMEs): Circular No 06/2019/TT/BKHDT on the network of consultants for SMEs and Circular No 05/2019/TT/BKHDT on subsidies for training courses for women-owned SMEs went into effect May 12. The consultant network is defined as a group of consultants and consultancies specialized in a broad range of fields […]
In recent years, Lao Cai province has developed into a promising destination for foreign investments – especially in the tourism, construction, and agriculture sectors. This is partly a result of Lao Cai’s strategic location located on the Kunming-Haiphong economic corridor, sharing a border on the Yunnan province of China. Lao Cai is now a major conduit for […]
Vietnam’s capital Hanoi has drawn more than US$5.3 billion in foreign direct investment (FDI) projects in the first half of 2019, establishing itself as the country’s top FDI destination this year. Representing 38.4 percent of Vietnam’s total FDI inflow in the first quarter of 2019, Hanoi has outpaced the country’s financial hub, Ho Chi Minh City, […]
Mergers and Acquisitions (M&A’s) are an increasingly popular route for foreign investors looking to begin operations in Vietnam – and due diligence is a key component of the M&A process. While there are several aspects to consider in due diligence – such as the company’s reputational profile, strategic position in the market, and assets – we […]
Vietnam has specific regulations on maternity leave that are unique to the country. Overall, Vietnam’s maternity laws are employee friendly and are set in place to ensure that employees are protected during and after child-bearing. A solid understanding of the law is needed for foreign-invested enterprises to plan effectively within the country. In May 2013, […]