MARKET ENTRY CONDITIONS FOR FOREIGN INVESTORS
Market access conditions applied to foreign investors are the same as those applied to domestic investors, except for the case specified in the List of business lines prohibited or restricted to foreign investors.
| PRINCIPLES | EXPLANATION |
|---|---|
| Prohibited or not allowed for market entry | Mentioned in the list of business lines that is prohibited or not allowed for market access |
| Entry with some certain conditions and restrictions | Shall satisfy some conditions in accordance with Vietnam’s commitment in International treaties; and/or Vietnam domestic Laws and Regulations |
| No commitment and No domestic restriction | Allowed to access market same as the domestic investors |
INVESTMENT LAWS AND REGULATIONS
| Law on Investment 2020 | Decree 31/2021/ND-CP |
|---|---|
| Principles and policies on market entry and doing business investment activities | Detailed procedures and guidance on Investment |
| Formalities of Investment | Detailed conditions for investment; prohibited business line; restricted business line. |
| Conditions to get Investment certificates | Detailed procedures to implement, amend or terminate investment project |
| Investment promotion and incentives | Principles and subjects to enjoy investment incentives and support. |
| Law on Enterprise 2020 | Decree 01/2021/ND-CP on Enterprise registration |
|---|---|
| Principles and policies on company establishment, and management, restructuring, dissolution, default of Enterprise | Detailed dossier, procedures for establishment registration of enterprises, branches, representative office, business location |
| 3 common forms for an FDI company: LLC, JSC, Partnership and relevant dependent unit like branches, representative office, business location | Inter agency coordination of implementation: enterprise registration employment declaration social insurance participant code invoice use registration |
| Rights and Obligations of company’s legal representative owners, corporate governance | Promote online services and e payment between the applicant and state agencies |
| Regulations of restructuring, dissolution, bankruptcy | Detailed procedures to apply for restructuring, dissolution, bankruptcy |
LABOR CODE AND REGULATIONS FOR FOREIGN WORKERS
| Labor Code 2019 | Decree 152/2020/ND-CP on foreign workers |
|---|---|
| Principles and policies on employment standards; rights, obligations, responsibilities of employer and employee; grassroot at workplace and trade union; other direct relations with regards to the employment | Elaboration of regulations on foreign employees |
| Labor contract; contract termination; labor discipline | Qualifications for being deemed as experts; managers; executives or technical workers… |
| Foreign employees in Vietnam: Condition precedent to work; condition for recruitment; work permits and exemptions. | Detailed procedures for employer to apply for getting approval on The demand of using foreign employees |
| Labor’s grassroots; Trade union | Detailed procedures to apply for work permits |
| Working hours; rest time; annual and holiday leave; retirement age | The validity period of work permit; related procedures and conditions for extension, re grant, new issuance |
TAX MANAGEMENT AND TRANSFER PRICING
| Law on Tax Management 2019 | Decree 132/2020/ND-CP on the management of Enterprise having affiliate transaction |
|---|---|
| Principles and policies on administering different type of taxes, other receivables of state budget | Principles, methods, procedures to identify the factor composing the price in affiliate transaction |
| Applications to use electronic invoices, electronic vouchers… | Identify parties having affiliate relations |
| Rights and obligations of taxpayers | Rights and obligations of taxpayers in affiliate transaction |
| Tax registration, declaration, payment, imposition | Principles of analysis and comparison |
| Procedures of declaration | |
| Information exchange mechanism |
COMMERCIAL LAWS
| Commercial Law 2005 | Law on Foreign Trade 2017 | Law on Competition 2018 |
|---|---|---|
| All Commercial activities conducted in Vietnam | Principles and policies on foreign trade management, development of foreign trade activities; dispute resolutions… | Principles and policies on anti competitive practices, economic concentration that causes or may cause anti competitive effects on the market of Vietnam; unfair competition practices. |
| Type of trader; rights and obligations of trader in some kinds of commercial activities | Export Import; transit, temporary import and re export; temporary export and re import management activities and related techniques of inspection on goods | Principles of identifying the Related market, Market shares; market dominant |
| Some kind of commercial business, such as: sales of goods, export import, mercantile exchange, business promotion, franchising, commercial intermediary activities, logistics… | The implementation of International treaties | The prohibition of some anti competitive agreements; unfair competition |
| Provisions of Commercial contracts and mechanism of dispute resolution | Safeguard and trade remedies; anti dumping; measures; countervailing duties | The forms of economic concentration under M&A practices, joint ventures; and the procedures of reporting economic concentration |
| Procedures of dispute resolution at Government level | Competition legal proceedings; and State management |
LAW ON INTELLECTUAL PROPERTIES
| Law on Intellectual Properties 2005 | Amended Law on Intellectual properties 2009 |
|---|---|
| Principles and regulations on the copyright and its related rights, the rights on industrial properties, the rights on plant seeds and the protection for those rights. | Some minor changes on the copyright; rights of industrial properties; plan seeds ownership; |
| Conditions and procedures to apply for the Protection of Intellectual properties rights | The implementation on the principles of First to file |
| Civil proceedings on IP protection | The punishment and penalties towards some infringement of IP rights. |
| The implementation of some commitments in IP international treaties (TRIPS; UOPV) |
LAW ON IMMIGRATION
| Law on Immigration 2014 | Amended Law on Immigration 2020 |
|---|---|
| Types, validity and conditions of application for VISA, Temporary Residence Card, Permanent Residence Card | Changing the type of VISA without leaving Vietnam in some circumstances |
| The procedures to apply for VISA, TRC, PRC | Residence terms for tourists |
| The procedure to enter, reside, exit, or transit in Vietnam | The application of E VISA |
| Inter agency coordination to resolve the application | VISA exemption for coastal economic zones |
Read more:
- Investment in Vietnam: Market entry procedures
- Investment in Vietnam: Restructuring – Acquiring and Selling a company
- Investment in Vietnam: New Laws and Regulations
- Investment in Vietnam: Managing the required compliances for a company
- Investment in Vietnam: Managing the required compliances for an foreign employee
