Thanks to the opening economic policy along with the favorable conditions for developing companies and enterprises in Vietnam, there are now more and more foreign investors are finding or creating the investment opportunities here in the country. Let’s find out more information about investment, and required documents for expats to invest in Vietnam.
Why investment in Vietnam
Foreign investors have various reasons to do business in Vietnam, but here is the some main factors:
- Vietnam is located in a strategic location: Residing in the heart of the South East Asia area, Vietnam is blessed with a great position with a long coastline which is convenient and important for international shipping routes. In addition, the 2 biggest cities Hanoi and Ho Chi Minh are settled in both the North and the South of the country, connecting with other cities like Hai Phong, Da Nang, etc. making a smooth network all over the country.
- Plenty of international trade agreements are signed: Being a developing country with a huge potential of growing economy, Vietnam has been signing trade agreements with other countries and international economic groups as well. This also clarifies that Vietnam is ready for welcoming investors from all over the world as well as proves that the country is qualified for international business activities. Some of the trade agreements can be mentioned as:
- Member of ASEAN and ASEAN Free Trade Area (AFTA)
- Bilateral Trade Agreement (BTA) with the United State
- Trans-Pacific Partnership (TPP)
- Free Trade Agreement with Japan
- Free Trade Agreement with Korea
- Friendly and supportive place for foreign investment: the Vietnamese government has applied many methods to support investors including:
- Lower corporate income tax or exemption from the tax for several typical industries;
- Exemption from import duties/ taxes on specific goods;
- Reduction or exemption from land rental or land use taxes
- Relatively low set-up costs
Investment opportunities in Vietnam
Not all investment methods are acceptable in Vietnam, so foreign investors will have to take it into consideration when doing business here. Of all ways, there are some investment forms that majority of investors perform include:
- Establishing a new company/ enterprise in Vietnam;
- Acquiring or investing in an existing enterprise, companies located in Vietnam;
- Setting up a branch or representative office in Vietnam or using contractual arrangements.
Construction is the field that attracts the largest rate of investment in the country that investors can do business in providing construction and building materials, drafting designs, home decoration, painting services, and so on.
Moreover, the desire for becoming younger and more beautiful among females are growing, so investment in beauty and cosmetics is also a great option. It is reported that the beauty and cosmetics retail market in Vietnam has been estimated to be worth more than US$3 billion annually, and to be much more in the near future.
Apart from those industries, other investment opportunities can be taken into account such as real estates, agriculture, and vehicles, etc.
If foreigners come to Vietnam for investment, a Vietnam investor visa is a must. The visa, signed as DT (ĐT1, and ĐT2, ĐT3, ĐT4 in particular) is a type of visa issued to foreign investors and foreign lawyers practicing in Vietnam.
According the Vietnam Law No. 51/2019/QH14 on the Entry, Exit, Transit through, and Residence in Vietnam, the investor visa is divided into 4 types as below:
- ĐT1: valid up to 5 years, issued to foreign investors and representatives of foreign organizations investing in Vietnam with capital contribution of at least VND100 billion, or investing in the business fields and areas of investment incentives decided by the Vietnam Government.
- ĐT2: valid up to 3 years, issued to foreign investors and representatives of foreign organizations investing in Vietnam with capital contribution of from VND50 billion to under VND100 billion, or investing in the business fields of investment encouragement decided by the Vietnam Government.
- ĐT3: valid up to 3 years, issued to foreign investors and representatives of foreign organizations investing in Vietnam with capital contribution of from VND3 billion to under VND50 billion.
- ĐT4: valid for 12 months, issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with capital contribution of less than VND3 billion.
So the Vietnam investor visa will be granted with a different signal on the visa depending on the type you are applying for.
Hope this useful post can solve your questions regarding investment opportunities and investor visa in Vietnam.