MINISTRY OF PLANNING AND INVESTMENT FOREIGN ... - …

1 DOING BUSINESS IN VIETNAM 2020 Investing in Vietnam, Engaging the worldMINISTRY OF PLANNING AND INVESTMENTFOREIGN INVESTMENT AGENCYII. Customs Duty and ProceduresE. Human Resources and Employment F. FOREIGN Exchange ControlUseful websitesAbbreviation A. Country ProfileIntroduction B. Trade and INVESTMENT I. Trade Agreement II. FOREIGN Direct InvestmentC. Setting up an INVESTMENT in Vietnam3561213131752586568 Deloitte Vietnam71 FOREIGN INVESTMENT Agency72 III. Land Rental Incentives56D. Taxation and Customs I. Taxation 2526 Doing business in Vietnam 2020.

2 2 Investing in Vietnam, Engaging the world3 APABOTEZFDIDTACITEPZASEANBLTBTLCPTPPERCA PECBCCBOOBTOEPEBTFCWTA dvance Pricing AgreementBuild-Operate-TransferEconomic ZoneForeign Direct InvestmentDouble Taxation Avoidance AgreementCorporate Income TaxExport Processing ZoneAssociation of Southeast Asian NationsBuild-Lease-TransferBuild-Transfe r-LeaseComprehensive and Progressive PartnershipEnterprise Registration CertificateAsia-Pacific Economic CooperationBusiness Cooperation ContractBuild-Own-OperateBuild-Transfer- OperateExport Processing

3 EnterpriseBuild-TransferForeign Contractor Withholding TaxGSOIRCOECDRCEPVASIMFIPPITO&M VNDFTAM&AVATWTOSSTPPPUSD GDPI nvestment Registration CertificateOrganization for Economic Cooperation and DevelopmentRegional Comprehensive Economic PartnershipVietnamese Accounting Standards International Monetary FundIndustrial ParkPersonal Income TaxOperate & ManageVietnamese DongFree Trade AgreementMergers & AcquisitionsValue Added TaxWorld Trade OrganizationSpecial Sales TaxPublic-Private PartnershipUS DollarGross Domestic Product General Statistics OfficeABBREVIATIONA greement for Trans-PacificDoing business in Vietnam 2020.

4 4 Investing in Vietnam, Engaging the world5 INTRODUCTIONIn more than 30 years of social-Vietnam has moved from being one of the poorest nations in the world to a lower middle-income country with a number of convincing social-economic achievements. Joining the Association of Southeast Asian Nations (ASEAN) in 1995 Economic Cooperation (APEC) in 1998 and the World Trade Organisation (WTO) in 2007; expanding gross domestic product (GDP); improving infrastructure; and a steady increase in FOREIGN direct INVESTMENT (FDI) suggest that Vietnam has transformed into an attractive INVESTMENT has been enjoying strong economic growth.

5 Since 1990, Vietnam s GDP per capita growth has been among the fastest in the world, averaging per cent a year in the 2000s. Despite crisis and uncertainties in the global environment, Vietnam s economy continues to grow, with GDP expanding by per cent in 2019,and is expected to continue on this path. Overseas businesses are increasinglyattracted by the country s move from a centralized to a market orientedeconomy and its million-strong population, which features a large and young workforce as well as an increase in disposable income in recent years.

6 The Vietnamese Government has done an excellent job percent (2019).This guidebook was prepared by the FOREIGN INVESTMENT Agency of Vietnam in cooperation with Deloitte Vietnam to provide readers with an overview of the INVESTMENT climate, forms of business organization, taxation, and business and accounting practices in Vietnam. Although we do our best to ensure that information contained in this book is current at the time of writing, the rapid changes in Vietnam mean that laws and regulations may change to reflect the new conditions.

7 We hope that you find this book useful in your endeavour to expand your business in of PLANNING andInvestment of VietnamForeign INVESTMENT Agency A COUNTRY PROFILE VIETNAM Strategically located at the centre of Southeast Asia with convenientaccess to commodity and cultural PROFILEV ietnam s economy continues its fast growth driven by free trade agreements (FTAs) with major developed countries and increasingly deregulated business environment. Competitive productioncost compared toneighboring FTAs with major developed markets.

8 A youthful and vibrant country with digitally-savvy and well-educated workforce,a developing culture of entrepreneurship, and openness to new ideas. A stable political environment, and an attractive business environment with high incentives for FOREIGN investors. Doing business in Vietnam 2020. 6 Investing in Vietnam, Engaging the worldFast growing economy with GDP growth projected to be between 6% to 7% during 2016-2019 SNAPSHOTLOCATIONPOPULATION AND WORKFORCEP opulation: was estimated at million peopleRanked 15th in the list of most populated countriesPeople of working age in employment: million people ( of total population)Unemployment rate: 2%ECONOMYN ominal GDP (2019): USD billionGDP in 2019 increase by ,the highest growth since 2011 GDP per capita (2019).

9 USD BUSINESS HOURSU nder the Vietnamese Labor Code, normal working hours should be 8 hours/day, or 40 - 48 hours/week. CURRENCY Vietnamese Dong (VND)LAND AREA 330,967 sq. kmCOASTLINE3,260 km5 MUNICIPALITIES & 58 PROVINCES North: Hanoi the capital Centre: da nang City South: Ho Chi Minh City the largest cityCLIMATE AND WEATHERThe climate varies from North to South with three distinctive climate zones: tropical in the South (rainy season from April to September; dry season from October to March); monsoonal with hot and rainy season in the Centre and North (May to September); cold and damp in the highlands and the North (October to March).

10 It is also blessed with plenty of sun throughout the AsiaThe country borders with China, Laos, Cambodia,Pacific Ocean and Gulf of ThailandVietnamese (official language)English (taught widely at school as a second language)Source: General Statistics Office (GSO), Economist Intelligence UnitPOLITICAL STRUCTUREV ietnam is a socialist country under the leadership of the Communist Party of Vietnam. The 14th National Assembly of Vietnam (term 2016-2021) has 489 Assembly, which is the highest-level representative body of Vietnamese people, has the power to exercise constitutional and legislative rights and to decide on critical issues of the country.