Identifying the conditions to do a specify business is the most complex part during the preparation step to invest in Vietnam.
The legal basis to identify investment conditions
Vietnamese competent authorities are based on these legal documents to identify investment conditions for foreigner investors
4. Specialized legal documents (Construction Law, Real Estate Trading Law, Commercial Law….)
5. Decisions of Prime Minister, Decisions of local People’s Committee, etc.
Principles when applying investment conditions
– A foreign investor investing in various business lines must fulfill all conditions applied to these business lines;
– A foreign investor that is regulated by international agreements on investment that provide for different investment conditions may apply the investment conditions provided for in one of such international agreements and must fulfill the foreign investor’s rights and obligations under the selected international agreement.
– Regarding sectors and sub-sectors excluded from commitments or not specified in Vietnam’s WTO Schedule of commitments and other international agreements on investment, if investment conditions applied to foreign investors are already provided for in Vietnam’s law, such Vietnam’s law shall apply;
– Where a foreign investor in a territory that is not a WTO member makes investment in Vietnam, such investor shall apply the same investment conditions as investors in WTO members, unless otherwise prescribed by law and international agreements between Vietnam and such WTO members;
– Regarding sectors and sub-sectors excluded from commitments or not specified in Vietnam’s WTO Schedule of commitments and other international agreements on investment, if investment conditions applied to foreign investors are also not provided for in Vietnam’s law, the investment registration authority shall consult with the Ministry of Planning and Investment and relevant Ministries;
How to apply
1. Investors can not invest on prohibited business lines under article 6 Investment Law of Vietnam:
Business in drugs prescribed in Appendix 1 to this Law;
Business in chemicals or minerals of types prescribed in Appendix 2 to this Law;
Business in specimens of wild fauna or flora included in Schedule 1 of the Convention on International Trade in Endangered Species and specimens of species of endangered and rare wild fauna or flora in Category 1 with the natural origin as prescribed in Appendix 3 to this Law;
Business in prostitution;
Purchase or sale of humans, tissues or parts of the human body;
Activities relating to asexual reproduction
2. Investors can definitely invest on business sectors which Vietnam has opened market (none) if investors meet the investment requirements
3. Investors may invest on business sectors which Vietnam has not committed to open market (unbound) in case relevant authorities accept their investment project.
This procedures often takes long times and unsure about result. Because the result depends on business sectors, government policies at that moments, etc.
List of business lines in Vietnam
In fact, CPC (Central Product Classification) system of WTO will be applied to determine foreign investors’ business sector. This CPC codes are shown on Investment Registration Certificate. Then CPC codes will be convert into Vietnam national system economy when apply for Enterprise Registration Certificate. For your reference, this is the list of business lines in Vietnam. In general, the four-number codes are official applied.
SHOULD YOU ENGAGE IN A LAWYER AND AN ACCOUNTANT
Company registration may seem like a major step in a new business venture for many people. Like anything, it can be daunting if you haven’t done it before and you definitely to make sure that it’s done correctly. Otherwise, you may waste a lot of time and pay fines if you do mistake, even a little one.
The process is generally quite smooth if you involve a professional to help you out. Every one wants to spend less time administering their business and more time running it. In Feline Legal, with many years experience in corporate services, lawyers and accountants will assist you and provide advance with forming your company. We also complete the paperwork, register your company and follow steps after that. You can save a lot of time and enjoy good services with reasonable price
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