Vietnam Joint Venture |
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Until recently, the Vietnamese government viewed foreign investment with suspicion, despite outwardly courting it. While the regulatory approval process remains time-consuming and bureaucracy is a fact of everyday life, a new foreign investment law was enacted in July 2006. A Vietnam Joint Venture (JV) is an effective entry vehicle into the expanding local economy. The following information will help you determine whether a Vietnam JV is the optimum corporate structure to fulfil your business objectives. |
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| Advantages of a Vietnam JV | ||||||||||||||||
| 1. | A Joint Venture is a popular investment vehicle because it combines the international expertise and technology of a foreign company with the specialist local knowledge of its Vietnamese partner. |
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| 2. | Joint Venturepartners are required to establish a board of administration to appoint directors. At least one director is required to be Vietnamese. |
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| 3. | There are no minimum capital requirements with a Vietnam Joint Venture, and no minimum requirement on the contribution of foreign investors. |
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| 4. | The Vietnamese government recently abolished its double pricing system. A Joint Venture pays the same statutory fees and prices for goods, commodities or services controlled by the government as Vietnamese-invested companies. |
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| 5. | A Vietnam Joint Venture requires a minimum of one director and one shareholder. However, a resident director is required. |
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| 6. | Healy Consultants can help obtain residence visas for expatriate staff for a Joint Venture. | |||||||||||||||
| 7. | Healy Consultants can open a corporate bank account in Vietnam for your Vietnam Joint Venture. | |||||||||||||||
| Disadvantages of a Vietnam JV | ||||||||||||||||
| 1. | Foreign and Vietnamese joint venture partners have vastly different business practices. Vietnamese partners typically seek an early distribution of gross receipts, rather than strategic reinvestment in a business. | |||||||||||||||
| 2. | A Vietnam Joint Venture is liable to pay a corporation tax of 25% on all taxable income. The corporation tax applicable to business establishments conducting exploration and exploitation of oil and gas and other valuable and rare natural resources is between 32% and 50%. Preferential corporation tax of 20% and 10%, in the form of incentives, apply if the enterprise meets specific criteria. | |||||||||||||||
| 3. | A Vietnam Joint Venture is required to have its financial statements audited annually. |
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| Healy Consultants fees for a Vietnam JV | ||||||||||||||||
| Our Year 1 fees for a Vietnam JV range from US$11,000 to US$21,000 depending on the corporate structure chosen and the range of professional services required from Healy Consultants. These fees include i) government License fees ii) virtual office fees iii) corporate bank account opening and iv) residence and employment visas. | ||||||||||||||||
| Contact Us | ||||||||||||||||
For more information on a Vietnam Joint Venture, email email@healyconsultants.com or call (+65) 6735 0120. |
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