FDI ENTERPRISES IN VIETNAM, WHAT SHOULD BE PAID ATTENTION?

Vietnam is on the way of economic recovery, foreign investors’ confidence in Vietnam’s investment environment is highly appreciated, when continuing to invest and expand projects with a sharp increase in the number of FDI enterprises compared with the same period.

FDI enterprise is an enterprise with foreign direct investment capital into Vietnam, which can be organized in the form of a joint stock company, a single-member limited liability company, etc.

Then, what are the points that foreign investors should pay attention to when setting up foreign direct investment enterprises in Vietnam?

1. Business investment fields

Investors should note that not all business fields are open to foreign invest in Vietnam.

When conducting investment, it is necessary to carefully study the regulations and laws of Vietnam as well as the international treaties to which Vietnam is a member. Accordingly, for each specific industry, foreign investors in Vietnam may be required for additional conditions, restrictions on investment methods or investment forms, capital contribution ratio.

2 Capacity of the Investor
Investors may invest as individuals or organizations.
However, a prerequisite for investors to be able to establish a business for the purpose of business investment is legal capacity and financial capacity.

3. Investment capital and capital contribution to establish FDI enterprises
For some specific investment industries, such as securities investment consulting…, investors may be required for the legal capital (minimum charter capital as prescribed) of the expected enterprise to be established.
In addition, the capital contribution needs to be completed in accordance with the prescribed time limit. It should be noted that, the time limit for capital contribution shall not exceed 90 days from the date of issuance of the Enterprise Registration Certificate.

4. Location of investment, business establishment
Investors should pay attention to choose the locations that satisfy the following factors:
– Having a clear and lawful address;
– The lessor must have and provide all valid documents proving the ownership or/and the right to lease/lease the investment;
– The place/office for lease is permitted for lease, designed, built and used for the specified purpose;
– The rented office needs to be in the area designed and built to serve the office function.
Noted that: The apartment building must not be used for the purpose of setting up a business office.

5. Use of labor
FDI enterprises when established in Vietnam, must comply with Vietnam’s regulations on the employment. Investors can hire Vietnamese or foreign employees, in accordance with the needs and situation of using labor at the enterprise.
In case of employing foreign workers, it is obligated to pay attention to the implementation of paperwork for foreigners, including visas, work permits, temporary residence cards, etc.

6. Legal representative
FDI enterprises must ensure that there is always at least one legal representative residing in Vietnam. In case an enterprise has only one legal representative, that person must reside in Vietnam and must authorize in writing another person to perform the rights and obligations of the legal representative when leaving Vietnam.

7. Report on the implementation of foreign capital investment projects in Vietnam
When establishing an FDI enterprise, according to Vietnamese laws, the investors must conduct the investment project reporting regime, register an account and implement the project reporting regime through the National Portal on investment. The implementation of periodical or extraordinary reports (if any) must comply with regulations on form and time limit.

In addition to the above issues, businesses should also pay attention to: COMPLIANCE WITH LAWS AFTER THE ESTABLISHMENT OF ENTERPRISE