FDI & Market Entry

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Tax Incentives for Foreign Investors in Vietnam: What Companies Should Review Before Relying on Them

Summary: Vietnam offers corporate income tax holidays, preferential CIT rates, import duty exemptions, and VAT treatment benefits for qualifying manufacturing projects — but incentives are not automatic. Eligibility depends on licensed activity, project location, sector classification, and ongoing compliance. Foreign investors should complete a tax and legal incentive review before site selection, licensing submission, machinery…

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Vietnam Factory Setup FAQ (Q81–Q90): Post-Licensing and Operational Compliance

Summary: Questions Q81–Q90 cover post-licensing operational compliance for Vietnam factories: annual DPI reporting obligations, capital contribution deadlines, foreign loan registration with the SBV, dividend repatriation, related-party transaction disclosures, occupational health and safety obligations, environmental monitoring and reporting, factory licence renewals, IRC amendment triggers, and the most common ongoing compliance failures that attract government inspection. Legal…

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Vietnam Factory Setup FAQ (Q91–Q100): Risk Management, Disputes and Exit Strategy

Summary: Questions Q91–Q100 cover the regulatory and commercial risk landscape for Vietnam factory investors: political and regulatory risk, investment protection under BITs, dispute resolution options (Vietnam courts vs. VIAC vs. international arbitration), land lease dispute risks, labour dispute mechanisms, anti-corruption compliance, force majeure in Vietnam law, project termination conditions, factory exit and capital repatriation procedures,…

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Vietnam Factory Setup FAQ (Q61–Q70): Labor, Expatriates and HR Compliance

Summary: Questions Q61–Q70 cover Vietnam labor law for manufacturing companies: minimum wages by region, mandatory social insurance, trade union obligations, work permit requirements for foreign workers, the 3% foreign employee cap, internal labour regulations, probation rules, termination requirements, DOLISA registration obligations, and the most common HR compliance failures in foreign-invested factories. Attorney Vu Manh Quynh…

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Vietnam Factory Setup FAQ (Q71–Q80): Customs, Import-Export and Supply Chain

Summary: Questions Q71–Q80 cover the EPE customs model vs standard customs, EPE eligibility and designation, import duty exemptions for production machinery and raw materials, export processing zone customs boundaries, HS code classification, certificate of origin for FTA preferential tariffs, customs audit risk, bonded warehousing, supply chain documentation requirements, and the top customs compliance failures in…

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Vietnam Factory Setup FAQ (Q51–Q60): Tax, Accounting and Incentives

Summary: Questions Q51–Q60 cover the 20% standard CIT rate, preferential 10% rate for qualifying manufacturers, CIT exemption and reduction periods, when the tax holiday begins (first profitable year, not ERC issuance), VAT obligations, transfer pricing under Decree 132/2020, Foreign Contractor Tax on offshore payments, Vietnamese Accounting Standards, annual audit obligations, import VAT on machinery, and…

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Vietnam Factory Setup FAQ (Q31–Q40): Licensing and Approvals

Summary: Questions Q31–Q40 cover the correct approval sequence for a Vietnam factory (IRC→ERC→EIA→construction permit→fire safety→production), IRC application documents, statutory vs realistic processing timelines, the correct issuing authority, EIA trigger thresholds, construction permit requirements, fire safety approvals, machinery import restrictions, sector-specific licences and IRC scope amendment. Legal framework note (updated July 2025): References in this article…

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Vietnam Factory Setup FAQ (Q41–Q50): Environmental, Construction and Operational Readiness

Summary: Questions Q41–Q50 cover environmental permits required before production, the EIA process, EIA vs Environmental Protection Plan, fire safety standards (QCVN), Fire Police inspection, construction permit requirements, the prohibition on pre-EIA construction, the legal definition of production commencement, the pre-production operational readiness checklist, and the most common post-construction approval delays in Vietnam. Attorney Vu Manh…

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Vietnam Factory Setup FAQ (Q11–Q20): Legal Structure and Incorporation

Summary: Questions Q11–Q20 explain the IRC vs ERC distinction, the mandatory sequential approval process, LLC vs JSC entity choice, charter capital requirements, the 90-day capital contribution deadline, legal representative obligations, governance structure, and annual corporate compliance obligations for foreign-invested manufacturing companies in Vietnam. Attorney Vu Manh Quynh is the Managing Partner of ECOVIS Vietnam Law,…

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Vietnam Factory Setup FAQ (Q21–Q30): Industrial Land and Location

Summary: Questions Q21–Q30 cover industrial park vs EPZ vs industrial cluster selection, how foreign companies lease land in Vietnam, typical sub-lease terms and costs, major industrial park developers (VSIP, Becamex, AMATA, Deep C), sub-lease due diligence, infrastructure verification, expansion rights, and land use right registration for foreign manufacturers. Legal framework note (updated July 2025): References…

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