Q: We are foreign investor and would like to set up wholly foreign owned company for trucking business, please advise the legal procedure and solution?
We understand that your company intend to expand business operation into Vietnam Market through setting up wholly foreign owned company for trucking business.
However, under Vietnam-WTO Commitment, for trucking business, your company must setup a Joint Venture Company with a local partner, in which, your company can only own maximum 51% capital of the Joint Venture Company.
Thus, in this case, you have two following options:
– Option 1: Setting up a Joint Venture Company in Vietnam and the local partner in Vietnam shall act as a sleeping partner. The Joint Venture Company in Vietnam shall directly provide cross-border trucking service to Customer.
– Option 2: Setting up a Wholly Foreign Owned Company in Vietnam for Transportation Agency Service. Then, the Wholly Foreign Owned Company shall order cross border trucking service from your trucking Company in Singapore for your Customer.
We strongly recommend you to select Option 2 as it can save you time and cost. For setting up a Foreign Owned Trucking Company in Vietnam, it shall take you much time.
Success Possibility of the case shall very much depend on where you intend to locate the Company because the License is granted on the basis of Market’s demand.
According to our practical experience, service fee that you have to pay for Option 1 shall be at least 25,000USD. Meanwhile, for Option 2, it may only cost you about 9,000USD.
Please let us know your choice. If you have any further inquiry, please feel free to contact us.
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