Italian investors want to invest in Vietnam

Economic and trade cooperation between Italy and Vietnam has created an exciting period than any time in recent memory. As of late, the Italian government has included Vietnam in the rundown of 20 nations that keep focusing on advancing exchange and venture until 2030.

On July 5th, 2022, the Vietnam-Italy Economic Cooperation Seminar the subject "Vietnam – A business and investment destination for Italian businesses" was organized by the Federation of Industry of Pisa province and Italian Chamber of Commerce in Vietnam (ICHAM), with the cooperation of Vietnamese Ambassador to Italy, the designation of the Embassy, heads of Pontedera cities, Pisa, Cascina, Calcinaia, heads of the Confederation of Industry of Pisa Province, and local businesses of the area of Pisa and the Tuscan region.

Vietnam is as of now Italy's biggest exchanging accomplice the Relationship of Southeast Asian Countries (ASEAN), while Italy is Vietnam's fourth biggest accomplice in the European Association (EU). Two-way exchange turnover 2021 will arrive at USD 5.6 billion, the most significant level ever, an increment of 20% contrasted with 2020. There are in excess of 110 Italian ventures putting resources into 18 regions and urban communities of Vietnam and working effectively. As of late, the Italian government kept on remembering Vietnam for the rundown of 20 nations that keep on focusing on advancing exchange and speculation until 2030.

Why Italian companies should invest and do business in Vietnam?

One is the dynamism of Vietnam's economy. Second, the deep integration of Vietnam's economy, which is a member of 16 Free Trade Agreements (FTAs) at the moment. These FTAs include brand-new and substantial ones like EVFTA, RCEP, and CPTPP. Third is Vietnam's changes and improvement needs. Fourth is the actions to help from the Italian government for organizations, particularly little and medium undertakings, in advancing "Made in Italy" items and internationalizing developing business sectors. Fifth is the reinforcing of trades and common figuring out between the people groups of the two nations.

The Vietnam Ambassador accepts that the meeting is a valuable chance to trade data and the kickoff of new participation projects sooner rather than later among Tuscany and Vietnam to upgrade this profoundly expected reciprocal collaboration. The Vietnam Ambassador communicated his expectation that an ever increasing number of Italian organizations overall and Toscana specifically will proceed with the outcome of Italian organizations putting resources into Vietnam, setting up company in Vietnam exploiting Tuscany area, with qualities in social qualities, long history, the travel industry, cooking, wine, design and workmanship items, and high innovation.

A representative of Esanastri printing organization, which has a factory set up in Vietnam, underscored that, notwithstanding lengthy involvement with the field of assembling silk-printed enhancements and 3D logos, as well as future arranging while moving the creation of head protector decorations, glue illustrations and 3D symbols to Vietnam, it was the cordial business climate in Vietnam that turned into an unequivocal variable for the improvement of the organization. Until now, Esanastri Vietnam has 50 workers and has produced more than half a million decorations with a turnover of about 3 million euros in 2021.

A representative of Segis organization, which likewise has a factory set up in Vietnam, imparted to the gathering participants about the triumphs of Segis Vietnam organization when the organization's furniture items with own plan has won many plan grants from the Modern Plan Relationship in Italy (Compasso D'oro), traded to Italy, Europe and USA for the beyond 10 years.

Vietnam Ambassador has required the help of the city experts in illuminating and supporting businesses doing business and investing and establishing companies in Vietnam, making good circumstances for trade exercises, culture and exchange among Vietnam and Italy inside the system of exercises to praise the 50th commemoration of the foundation of political relations between the two nations. 

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How to Set up Business Venture in Vietnam?

How to Set up Business Venture in Vietnam?

To help foreigners start a business in Vietnam, we would like to introduce the service to assist in setting up business venture in Vietnam.

Foreign investors could make direct invest in Vietnam through setting up 100% (100 percent) capital of foreign investors, or setting up joint venture  between domestic and foreign investors or putting resources into the legally binding types of: BTO, BTO, BT, BCC, and BO.

Types of enterprise for foreign investors to invest in Vietnam are as following:

Limited Liability Company (LLC)

A limited-liability company  (LLC) may not issue securities to mobilize capital.

Joint Stock Company (JSC)

The main difference between Joint Stock Company (JSC) and Limited Liability Company (LLC) is the Joint Stock Company (JSC) can raise funds by offering shares or securities.

In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company (JSC).  Management system of JSC is more complicated than LLC.

Partnership

Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets.  Meanwhile, Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.

Representative Office of Foreign Trader

Representative Office  is not permitted to straightforwardly lead benefit making exercises in Vietnam (i.e: the execution of agreements, deal or acquisition of products, or provision of services...

Branch of Foreign Trader

In accordance with the law of Vietnam and any international treaty that the Socialist Republic of Vietnam is a member of, the Branch of Foreign Trader is permitted to carry out activities such as the purchase and sale of goods and other commercial activities with its license for establishment.

Investing by Signing Contracts

BBC contract (Business co-operation contract) means the investment form signed between financial backers to co-work in business and to share benefits or products without creating a legal entity.

Fabricate work move contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; furthermore, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.

BTO contract (Build-transfer-operate contract) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; however, upon completion of construction, the investor shall transfer the facility to the State of Vietnam. Then the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.

BT contract (Build-transfer contract) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam. Then the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance following an agreement in the Build-transfer contract.

Foreign investors may sign BT contract, BTO contracts and BOT contract with a competent State body to implement infrastructure construction projects in Vietnam. Especially, The contracts are for projects in the fields of electricity production, drainage, transportation, water supply, and waste treatment...

At ANT Lawyers - a law firm in Vietnam, Our English speaking lawyers help clients overcome cultural barriers and achieve their strategic and financial outcomes, and regulatory compliance while doing business in Vietnam. 

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