There are 6 forms of investment for foreign investors in Vietnam: >>1. 100% Foreign-owned Factory: The minimum shareholder is one, but no more than 50. Factory can export and conduct domestic sales.  2. Joint Venture Factory: The same as joint venture factory in China, it requires at least 2 shareholders. The foreign investor could hold the share up to 99%.  3. Contractual Forms: Investors are permitted to sign a BCC (Business co-operate contract) contract in order to co-operate in production and to share profits / products and other forms of business co-operation. The foreign share ratio can't exceed 70%.  4. Joint Venture Trading Company: As it is not allowed to set up foreign wholly owned trading company in Vietnam until Jan 1, 2009, foreigners can cooperate with local company or individual by setting up joint venture trading company. The foreigner's share ratio can not exceed 99%.  5. Rep. office: It can deal with marketing, corresponding on behalf of parent company, except for carrying out business activities and issuing invoice in Vietnam. Foreign investors can set up as many independent rep. offices as needed. But the branches of rep. office are not permitted in Vietnam.6. Branch: It can sell / purchase goods and carry out all kinds of business activities, no requirements for paid up capital. Yet, it is not allowed to set up currently.

There are no requirements on foreign investment amount and registered capital in Vietnam. But registered capital can not less than 30% of total investment amount. The registered capital of encouraged / large investment project can reduce to 20%. We suggest the minimum registered capital is not less than USD100,000 (about NTD3,100,000, RMB710,000) , so that it can be approved easily. The capital should be paid up within 0.5-1.5 years. And can apply for another half year extension subject to conditions. There has no cash and machineries ratio limitation, and capital can paid-up by cash, machine and patent.

After Vietnam joints the WTO, it will open local market to foreign investors in: insurance, financial, medical, tourism, trading, transportation, advertisement, telecommunication sectors. Therefore, foreign investors should plan beforehand.

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• Differentiation

  Content

• foreign owed
• domestic owned
• minimum shareholder  
• minimum director
• chairman/president
• minimum capital (us$)
  
• where can be set up
• days to set up
• export to foreign
• sell to domestic
• material overseas
• material from domestic
• value added tax(vat)
• tax incentive program
• net profit tax %
• withholding tax dividend
• personal income
• levied on import
• tax refund of export
• branch set up
• rep. office set up

Factory
WFOF	JVF	BCC
100%	1-99%	1-70%
nil	1-99%	30-99%
1	2	2
1	2	2
1	1	1
100,000	no limit	no limit
nation wide	nation wide	nation wide
45-90	45-90	45-90
1-100%	yes	yes
1-100%	yes	yes
yes	yes	yes
yes	yes	yes
0% / 5% / 10%
2 exempt 3 reduce - 4 exempt 9 reduce
10% / 15% / 20% / 25%
0%	0%	0%
0-35%	0-35%	0-35%
yes	yes	yes
yes	yes	yes
nation wide	nation wide	nation wide
yes	yes	yes

Company
Company	Branch	Reps.
100%	100%	100%
nil	nil	nil
1	1	1
1	nil	nil
1	1	1
100,000	no limit	nil
nation wide	nation wide	nation wide
30-45	45-90	30-45
yes	yes	no
yes	yes	no
yes	yes	no
yes	yes	yes
10% / 15% / 20% / 25%		nil
nil	nil	nil
10% / 15% / 20% / 25%		nil
0%	0%	nil
0-35%	0-35%	0-35%
yes	yes	yes
yes	yes	yes
nation wide	no	no
yes	no	no