Why Invest in Vietnam?

Updated on Wednesday 01st November 2017

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Vietnam’s economy is currently going through a very good phase. In 2016, Vietnam secured its position among ASEAN and global players in terms of economic recovery, while the current year is expected to end with a 6,7% growth in terms of Gross Domestic Product. Recent numbers indicate that Vietnam is one of the most open countries to foreign direct investments (FDI), attracting in 2016 2.4 billion USD, 9% higher than the previous year.
If you want to open a company in Vietnam and need more information on the reasons why it is worth investing in this country, our local company formation consultants can advise you.
 

What are Vietnam’s strongest points in terms of foreign investments?

Vietnam is among the top 15 countries in the world in terms of population, which means it also has a great purchase power. In the region, Vietnam ranks 3rd in terms of market size. Its geographical location helps foreign investors opening companies in industries like manufacturing and trading with ties all over the world.

Vietnam is one of the most open countries in the region when it comes to foreign investments. From this point of view, Vietnam:

-          has become a part of the World Trade Organization;
-          has entered various free trade agreements;
-          is currently negotiating the Trans-Pacific Partnership which will open the local market to more investors.

Our Vietnam company formation experts can assist foreign investors who want to establish companies here.
 

Foreign investments incentives in Vietnam

Those interesting in setting up a business in Vietnam will benefit from many advantages granted by the government under the form of foreign investment incentives. Among them are:

-          preferential corporate tax rates;
-          corporate tax reductions and exemptions;
-          investment guarantees;
-          exemptions on import duties;
-          royalties tax exemptions.

The preferential corporate tax rates refer to a 10% and a 17% rate offered to Vietnam companies for a period of 15 years, respectively 10 years. Foreign investors should know that the usual rate of the corporate tax in Vietnam is 20%. The tax exemptions can be granted for periods of 2 to 4 years for companies engaged in new investment projects in various areas of the country.
Other incentives granted to those interested in investing in Vietnam refer to employment and research and development matters.

For full information on the legislation related to foreign investments in this country, please contact us. You can rely on our Vietnam company registration advisors for assistance in starting a business here.
 

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