Viet Nam - A Guide for Business and Investment - asean-korea centre

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The center of Hanoi CapitalPART III. BUSINESS AND FOREIGN INVESTMENT ENVIRONMENT26 Viet Nam - A Guide for Business and Investment
1. An overview of the legalframeworkBackgroundViet Nam’s common law system has been largely influencedby Chinese, French and Soviet rule. Followingthe open-door policy of 1986, Viet Nam has enactedthe Constitution of 1992 (as amended in 2001) tostrengthen legal institutions and to pave the way for itsparty-led economic reform.To create a favourable environment for the developmentof a multi-sector market economy as well asmore open and stable investment environment, VietNam is making efforts to improve its legal system.During recent years, many laws and regulations havebeen enacted to establish the legal framework for theopen-door policy and to comply with the integration requirementsof international agreements, especially toprepare for Vietnam’s WTO membership, of which themost important laws include:• the Civil Code (2005);• the Labor Code (1994, as amended in 2002);• the Commercial Law (2005)• the Law on Enterprises (2005)• the Law on Investment (2005)• the Law on Credit Institutions (1997, as amenedin 2004)• the Land Law (2004)• the Law on Business Income Tax (2004)• the Law on Accounting (2004)* A list of major legal document relating to the businessactivities of foreign investors in Vietnam is attached atthe end of this book.Main legislation for FDIThe main legislation governing foreign direct investment(FDI) activities is the Law on Investment and theLaw on Enterprises in Viet Nam, both having been adoptedby the National Assembly on 29 November 2005and having entered into force on 1 July 2006.With a view to creating a comprehensive legal frameworkfor FDI activities in accordance with internationalstandards, Viet Nam has signed and acceded to variousbilateral and multilateral arrangements on investment,such as agreements for the promotion and protectionof investment with 46 countries and territories, theASEAN Framework Agreement on Investment (“AIA”),the BTA with the United States of America containingan investment charter, the Convention on the Establishmentof the Multilateral Investment Guarantee Agency(“MIGA”), and other related international investmentagreements.Where the international agreements contain provisionsinconsistent with the provisions of the legal instrumentson FDI, the provisions of those internationalagreements shall be applied.List of countries and territories agreements signing theAgreement on promotion and protection of investmentwith Vietnam: Italy; Australia; Thailand; Belgium; Luxembourg;Malaysia; Philippines; Germany; France; Switzerland;Belarus; Indonesia; Singapore; People’s Republicof China; Armenia; Chinese Taipei; Republic of Korea;Denmark; Sweden; Finland ; Netherlands; Ukraine; Russia;Hungary; Poland; Rumania; Austria; Latvia; Cuba;Lithuania; Laos; Uzbekistan; Argentina; Bulgaria; Algeria;India; Egypt; The Czech Republic; Tajikestan; Chile;Mongolia; Myanmar; Cambodia; P.D.R Korea; UnitedKingdom; Iceland; Japan2. Vietnam’s WTO accessionVietnam official joined WTO on 7 November 2006 andofficially put the commitment into effect from 11 January2007. A summary of the WTO commitment is attachedat the end of this book.The two main positive impacts of Vietnam’s WTO membershipon FDI are:Firstly, considerable import duties reduction on theimports used as the inputs for domestic production aswell as for private and government consumption (inmany cases, import tariff rates on inputs for producingexports and other goods such as machinery and equipmentused to produce exports have been remarkablyreduced during the negotiation process. Moreover, theexporters are also refunded with import duties imposedon input materials used for producing exports.Secondly, liberalization of services market of Vietnam.Viet Nam - A Guide for Business and Investment 27PART III. BUSINESS AND FOREIGN INVESTMENT ENVIRONMENT
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Page 6 and 7: PART V. INVESTMENT COSTS IN VIET NA
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Page 18 and 19: PART II. THE ECONOMYThe industrial
Page 20 and 21: PART II. THE ECONOMYExport, Import
Page 22 and 23: PART II. THE ECONOMY4. Official Dev
Page 24 and 25: PART II. THE ECONOMYFDI Distributio
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Page 46 and 47: Ground Breaking Ceremony of Saigon
Page 48 and 49: PART IV. INVESTMENT PROCEDURE3. Lic
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Page 52 and 53: Song Than Industrial Zone in Binh D
Page 54 and 55: PART V. INVESTMENT COSTS IN VIETNAM
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Page 58 and 59: APPENDIX Imediately 100% (for examp
Page 60 and 61: Labour11 Labour Code dated 23/6/199
Page 62 and 63: Real Estate Business34Law No. 63/20
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Page 66 and 67: APPENDIX IIIstruction of private an
Page 68 and 69: 14 Yen Bai Luc Yen, Mu Cang Chai an
Page 70 and 71: 52 Bac Lieu All districts Bac Lieu
Page 72 and 73: APPENDIX VIUseful contacts and addr
Page 74 and 75: APPENDIX VIHoa Binh DPINo. 3 Tran H
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Dak Lak DPINo. 17 Le Duan str, Buon
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Bac Giang IZs MBNo 48 Ngo Gia Tu st
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Vietnam - Singapore IZs MBNo. 8 Huy
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Germany, 29 Tran Phu St., HanoiTel:
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KPMG in VietnamHanoiHo Chi Minh Cit
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