Major Changes of the New Investment Law (NIL) at a Glance
On 17 July 2020, the National Assembly of Vietnam issued Investment Law No. 61/2020/QH14 which will replace the current Investment Law No. 67/2014/QH13 of...
Intra-Group Zero Interest Loans
This note discusses possible impacts of employing intra-group ‘zero interest’ loans and respective solutions prefered by involved parties.
1. Debt Financing or Equity Financing?
When a...
Opportunities for Startups and Venture Capital Investors in Vietnam: An Interview...
I had a very interesting interview with Asia Law Portal on the unique opportunities and challenges Vietnam offers to startups and venture capital investors...
What Are Conditions for Vietnamese Companies to Get Investors’ Loans?
In the preceding post, we discuss how foreign (i.e. - investor/parent company) loans are classified, how such classification would affect the funding plan and...
How to Give A Loan To Vietnamese Companies?
When it comes down to funding Vietnamese targets, advantages of loans, especially short-term ones, are obvious. A short-term loan would help to circumvent a...
Investment in Vietnam via Singapore: Why Better To Be Safe Than...
Please see the first post on why investment in Vietnam via Singapore is preferred by all here.
But does it mean the Singapore route is...
Introduction of Draft New Investment Law and Its Possible Implications on...
The Government of Vietnam is accelerating the drafting of two most important laws relating to foreign investment, i.e. the Investment Law (IL) and the...
What Are Key Considerations When Using Special Investment Vehicles in Vietnam?
In the last post, we have discussed the history of using SPVs in Vietnam. This post will therefore take a close look at possible...
Representative Offices in Vietnam: Licensing Process, Tax Issues and Other Considerations
Readers are recommended to first read following related posts:
What Are Major Forms of Commercial Presence in Vietnam?
Representative Offices in Vietnam: Main Functions,...
Representative Offices in Vietnam: Main Functions, What They Can Do and...
Please first read this post What Are Major Forms of Commercial Presence in Vietnam? to understand major forms of commercial presences available in Vietnam as well as...
How is a Typical Startup M&A Structured?
This post is intended to address the question of how a typical acquisition of a Vietnamese startup takes place in practice.
From a deal structure’s...
What Are Major Forms of Commercial Presence in Vietnam?
Although many foreign investors generally have a basic understanding of investing in Vietnam, some are unfamiliar with the process. This article explores the primary investment forms available to foreign enterprises in Vietnam: Representative Offices (RO), Branches, and Subsidiaries. Each form has unique features, such as legal status, operational autonomy, and licensing procedures. While Representative Offices are ideal for market research and initial stages, Branches face practical limitations and are rarely utilized. Subsidiaries, offering the greatest operational freedom and profitability, are the most suitable for large-scale investments. A detailed comparison of these options helps investors navigate Vietnam's regulatory environment effectively.
Capital Gains Tax
Related post: How Capital Gains Are Taxed in Vietnam?
Of course, I do not discuss a plan to create an offshore special vehicle to invest in...
A Term Sheet in Vietnam’s Context: Why it Matters?
Does it really matter and why?
Yes, it does and very much.
First thing first, a term sheet is not a contract in a sense...
A Term Sheet in Vietnam’s Context: What is it?
What is a Term Sheet by the way?
Imagine that, on a beautiful day, founders of a Vietnamese startup just received a ‘term sheet’...
Investment in Vietnamese startups via Singapore: Why?
In 2015, the success of Flappy Bird sparked a startup boom in Vietnam. However, regulatory challenges led many entrepreneurs to consider setting up companies in Singapore to mitigate risks. Compared to Vietnam, Singapore offers faster licensing processes, contractual freedom, administrative ease, and the ability to bypass local regulatory restrictions. Today, choosing the "Singapore route" has become a key strategy for Vietnamese entrepreneurs.
Case Study: A Fund’s Hard Exit (Part #1)
In early 2018, VinaCapital (VC), through its affiliate, invested US$32.5 million to acquire a significant minority stake in Ba Huan Joint Stock Company, a...
Squeeze-out, Freeze-out & Appraisal Right – How a Minority Shareholder can...
Last week, I met a startup’s CEO and was questioned about how to get rid of a troublesome shareholder (also an employee) in his...
Using Special Purpose Vehicles (SPVs) in Vietnam for Tax Purposes: How...
In June 2016, Vietnam’s local authorities in areas where Big C-branded supermarket chain locates were requested to temporarily stop any licensing works relating to...
The investor-nominated director! Do you really need the target’s indemnification or...
Early 2010, two Australian executives of Jestar Pacific, a joint venture airline between the State-owned Vietnam Airline and Australia's Qantas Airways, were not permitted to...
