In this issue:
- Upgrading Your Representative Office
- Liquidating Your Representative Office
- Vietnam’s Company Closure Process
So, you want to expand your business presence in Vietnam. How? For starters, you can open up a representative office (RO) in the country, which would get your foot in the door when it comes to exploring the market and conducting business. However, in Vietnam (as in most countries), an RO is limited in its range of operations and is typically used as a stepping stone to test the water before a company decides to establish a legal entity with a larger scope of business, such as a joint venture or a 100 percent foreign-owned entity.
So how do you make the jump from an RO to a 100% FOE? Take a look into your RO’s operations before deciding what your next move will be. Upgrading the office may be the right answer for you – as an RO can easily be upgraded to increase its scope of activities to align more closely with your company’s goals and to further your business’ game plan. Or, if that’s not in line with your company goals, you can just as easily decide to close up shop.
With these considerations in mind, this issue of Vietnam Briefing examines ROs - the processes of working with them, and the rationale for either upgrading or closing them. We explain not just how to close up your RO, but also list out the common reasons for doing so. In addition, we include detailed instructions and timelines on how long it takes to upgrade or close up shop. In conclusion, we also summarize how to set up an RO in the country for businesses looking to get started in the market.