7 Powerful Reasons to Start FDI Company Formation in Vietnam Now

1. 7 P O W E R F U L R E A S O N S To Start FDI Company Formation in Vietnam Now “A Strategic Guide for Global Investors”

2. VIETNAM – A RISING INVESTMENT STAR ✨ Momentum. Stability. Opportunity. Despite global disruptions, Vietnam stands out as: A stable hub in Asia An agile economy reshaping itself for FDI A strategic relocation point for global investors

3. WHY NOW? GLOBAL & LOCAL FORCES ALIGN ?Global Shifts Trade wars, supply chain reconfiguration Need for geographic and regulatory diversification Vietnam’s Response Active FDI reforms & digital transformation Key FTAs: EVFTA, CPTPP, RCEP Government-backed policy and infrastructure upgrades

4. FDI 2025 LEGAL STRUCTURES IN VIETNAM BUSINESS ? Main Options 100% Foreign-Owned Enterprise Full ownership, autonomy, profit control Ideal for unrestricted sectors Joint Venture Local partner leverage Required in conditional sectors ✅ Choose based on control needs, market access, and licensing complexity.

5. KEY LEGAL FRAMEWORKS ? Core Laws Governing FDI Law on Investment: Sector access & investor rights Law on Enterprises: Corporate structure & governance International Trade Agreements: Legal protections Note: The "Negative List" of restricted or conditional sectors. ⚠ Tip: Legal advice is crucial due to local variations in enforcement. ?

6. REGISTRATION PROCEDURE ? Two-Step Process Investment Registration Certificate (IRC) 1. Enterprise Registration Certificate (ERC) 2. ? Followed by: Capital contribution, tax setup, labor registration Timeline: ~20–45 business days ? Local advisors speed up and de-risk the process REGISTER NOW

7. STRATEGIC LOCATION MATTERS ? Location = Incentives + Efficiency Options include: Urban hubs: Talent, infrastructure Rural zones: Lower cost, tax benefits Coastal cities: Logistics, exports ? Tax holidays & CIT incentives often depend on province selection.

8. VIETNAM’S TAX & INCENTIVE SYSTEM ? Key Tax Highlights Corporate Income Tax: Standard 20%, can be 10%-15% Tax Holidays: Up to 4 years + 50% reduction Duties Exemptions: Equipment & materials PIT Incentives: Available for foreign professionals ✅ Smart tax structuring = higher ROI

9. STAYING COMPLIANT POST-INCORPORATION ? Ongoing Obligations Labor contracts & social insurance Work permits for expats VAS accounting & annual audits Licensing renewals & sector reports ? Non-compliance = Fines, suspension, or license loss ? Continuous legal support is key.

10. SECTOR-SPECIFIC LICENSING ⚙ Additional Licensing Required For sectors like: Education ? Healthcare ? E-commerce & Fintech ? Logistics ? ? IRC/ERC are only step 1 — operational licenses follow

11. RISKS & CHALLENG TO ANTICIPATE 20 25 ⚠ Common Issues Administrative delays Complicated land-use rights JV partner disputes Currency controls & repatriation restrictions ✅ Risk management = Early legal planning + Right advisors

12. EXIT & RESTRUCTURING OPTIONS ? Smart Investors Plan for Exit M&A / Share Transfer Liquidation Conversion (100% Foreign-Owned Enterprise ⇆ Joint Venture) ? Repatriation allowed with approvals and tax clearance

13. LEGAL CERTAINTY IS VIETNAM’S NEW EDGE ⚖ Strengthening Legal Environment Arbitration friendly (New York Convention signatory) Commercial law aligned with international standards Growing transparency & digital processes ? Legal predictability = Competitive advantage for foreign investors

14. FINAL THOUGHT WHY START NOW? ? VIETNAM IS READY. ARE YOU? Regional leader in FDI growth Favorable legal and tax structures Transparent, improving regulatory environment ? TALK TO AN EXPERIENCED LEGAL ADVISOR TO BEGIN YOUR VIETNAM JOURNEY. https://antlawyers.vn/