Vietnam abounds in seaports, has over a score of civil airports, and a well-distributed rail and road network. Since the 1980s, Vietnam has witnessed rapid growth in the economy, especially in international trade. A one-party Communist state, it has one of south-east Asia’s fastest-growing economies and is poised to become a developed nation by 2020.
Company incorporation in Vietnam
Foreign investors can choose one of the following legal entity types to
incorporate a company in Vietnam.
- Private Enterprise: A private enterprise is owned by 1 person who bears unlimited liability, i.e., is liable for all activities of the company to the extent of all one’s assets.
- Partnership: A partnership company can be set up by 2 or more partners. A partner may be a general partner (liable for all obligations of the company with one’s own assets) or a limited partner (liable for the company to the extent of one’s capital contribution).
- Limited Liability Company: A limited liability company (LLC) is a legal entity established by its members by way of capital contribution. It can have 1 or more members. The capital contribution of each member is treated as their respective equity. The members of an LLC are liable for the
financial obligations of the LLC to the extent of their capital contributed.
- Joint Stock Company: A joint-stock company (JSC), or shareholding company, is a legal entity established by its founding shareholders on the basis of their subscription of shares of the company. A JSC is required to have a minimum of 3 shareholders.
- Branch: A branch office is an offshoot of a company located abroad that wishes to conduct business in Vietnam, provided the parent company has been in business for at least 5 years.
- Representative Office: Foreign companies in business for at least 1 year may open a representative office in Vietnam. A representative office is not allowed to carry out manufacturing or commercial activities but may carry out market research or promotion for its parent company.
Benefits of company incorporation in Vietnam
Doing business in Vietnam has the following benefits:
- Owing to foreign direct investment (FDI) and tremendous expansion of the private sector, Vietnam is one of the fastest-growing Asian economies with a high GDP growth
- Placed in the centre of the Association of Southeast Asian Nations (ASEAN), Vietnam holds quite a strategic location in terms of market access. Moreover, Vietnam has a long coastline and proximity to the major global shipping routes.
- Vietnam is open to the global economy. It is a member of ASEAN, ASEAN Free Trade Area (AFTA), and the World Trade Organization (WTO). It also has over 60 double tax agreements.
- The population in Vietnam is young, skilled, and abundant. The literacy rate is over 90%.
- Vietnam has a stable government and social structure, making it an ideal place for capital investment.
Company setup in Vietnam envisages huge earning potential, liberal business protocols, and a favorable working environment. Exsilium helps global investors, businessmen, and corporates set up a company in Vietnam in utilizing all the advantages that a developing economic hub provides. Our experts take care of the banking, visa, and licensing formalities, and allow corporates to enjoy their company formation process without worrying about the bureaucratic red tape and legal formalities.