Click on each topic for more information



Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

The nature of aids and incentives will vary depending on the place of settlement in Vietnam. There are two types of free trade zones in Vietnam: the EPZ (Export Processing Zones) and the IZ (Industrial Zones). The EPZ ar intended for goods production and exports. Whereas the IZ focuses on the export of manufactured goods and the production of local products. Incentives are mainly export taxes exemptions, reduction on the company tax rate and reductions on various taxes. Foreign investors can contact the Ho Chi Minh Investment Department, the Chamber of Commerce and Industry and the MPI to get further information on available aids.


Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Individual company 1 member 300 million of Dngs Indefinite responsibility 0.01% of the capital Yes
Private Limited Company Minimum 2 partners 600 million of dngs Liability is limited to the contributions. 0.01% of the capital Yes
Joint-stock company Minimum 7 partners 500 million of dngs Liability is limited to the contributions. 0.01% of the capital Yes

Registration and licensing procedures
The Committee of State for Co-operation and Investment (THIS) is the organisation where status must be registered.

Foreign exchange control
In accordance with the law on exchange controls, any exchange transaction of Vietnamese Dng in foreign currencies must be, first, authorized by the Central Bank. Vietnamese Dng is not totally convertible. Foreign investors have the right to transfer capital and profits. However, the MPI's approval is required in order to carry out transfers with an amount superior to the initial capital and to the reinvested capital.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Vietnam.  

Foreign Direct Investment inflows in Vietnam

FDI inflows 2003 2004 2005 World rank (*)
FDI inflows (USD million) 1 450 1 610 2 020 53/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.


Last modified in 2007 - ongoing update
Export Entreprises©, All rights reserved