Forms of Doing Business in Vietnam 2017
Since Vietnam first opened its doors to foreign direct investment in the late 1980s, the primary way to establish a long-term corporate presence in Vietnam had been to set up a foreign invested company (FIC) under the Law on Foreign Investment in Vietnam of 1996 (LFI) and its predecessor the 1987 Law on Foreign Investment.
Since 1 July 2006, the Enterprise Law 2005 and the Investment Law 2005 superseded the LFI to be the main legislative frameworks governing matters relating to foreign investment in Vietnam, reflecting Vietnam’s desire to attract foreign investment to the country.
Nearly 10 years after the adoption of the above-mentioned two legislations, on 26 November 2014, the National Assembly passed a new Investment Law 2014 and Enterprise Law 2014, replacing Enterprise Law 2005 and Investment Law 2005 as from 1 July 2015. These new laws adopt a more pro-investor approach, aiming to reduce administrative bureauracy and better facilitate foreign investment into Vietnam.
This publication outlines the corporate vehicles that are available to foreign investors and traders for conducting business operations in Vietnam under the Investment Law 2014 and Enterprise Law 2014, and alternative means for establishing a business presence in Vietnam.