Question 2: Can we create a local Vietnam company with 100% ownership if we get a longer term job opportunity in Vietnam?
Answer: The answer is yes, it is possible for you to set up 100% foreign invested company according to Vietnam law. Under Vietnam Law on Investment, in order to setting up a foreign invested company (hereinafter referred to as “NewCo), Foreign Investor is required to propose an Investment Project. Investment Project is understood as “a collection of proposals for the expenditure of medium and long-term capital in order to carry out an investment activity in a specific geographical area and for a specified duration”.
Then, relevant competent authorities shall evaluate the legitimacy and the feasibility of such Investment Project to determine whether to grant Investment Certificate or not.
Assessment of the legitimacy of an Investment Project shall be based on legal framework of Vietnam, including Vietnam’s WTO Commitments, Vietnam Investment Law, Vietnam Enterprise Law, Regulations applicable to specific industries as well as the master economic development plan of the city or province that the NewCo shall register its head-office.
Meanwhile, a conclusion regarding to the feasibility of an Investment Project shall be based on assessment on the financial ability of the Foreign Investor, investment capital to put in the Investment Project, facilities and human resources serving the implementation of such investment project in Vietnam.
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