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100% FOEs, JVs and the Promotion of Supporting Industries

NOV
30
-0001

In this issue: 

  • 100%Foreign-owned Enterprisesand Joint Venturesin Vietnam Compared
  • Roadmap and Timeline for Licensing Procedures
  • New Regulation of Supporting Industries, Clarification of Supporting Industries for High-Tech

For investors looking to make forays into Vietnam, choosing between a wholly foreign-owned enterprise (100% FOE) and a joint venture (JV) can have significant implications, as both have their pros and cons and the permissible establishment details (such as percent of foreign capital contributions) for each varies by sector.

As 2012 will be a year of significant change in limitations on foreign ownership regulations for 100% FOEs and JVs, this issue offers a clear snapshot of up-to-date regulations and specific changes to expect in 2012, as well as a useful summary of tax incentives and exemptions. Also, a roadmap and timeline for licensing procedures take the guesswork out of this initial step in establishing a business in Vietnam.

The Vietnamese government has also recently issued a number of policies to encourage supporting industries, especially those connected to high-tech. Each eligible project to manufacture supporting industry products (including materials, spare parts, accessories and semi-finished products) can receive the government incentives that we describe here. To help you determine what qualifies as a supporting industry to high-tech, this article includes a comprehensive list of the 46 types of advanced technology and 76 high-tech products prioritized for investment.

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