Frequently Asked Questions
Publish date 14-04-2017 15:22
Question: Shall foreign investors be entitled to establishment of 100% foreign-owned capital enterprises to supply advertising services?

Answer: According to the commitments of Vietnam as a member of the World Trade Organization (WTO), foreign investors shall be entitled to establishment of a joint-venture company with foreign capital contribution less than 100%. Concurrently, Vietnamese partners must be legally authorized to do advertising services. The joint venture company shall be entitled to supply of the advertising services for all ranges of products, excluding advertising for cigarettes. Alcohol advertising shall be permitted providing that it conforms to the regulations of the Vietnamese Law.

Question: What are limitations on market access of foreign-invested travel agencies and tour operators?

Answer: According to the commitment of Vietnam as a member of WTO, foreign-invested travel enterprises are only permitted to do inbound services and domestic travel for inbound tourists as an integral part of inbound services. They are not permitted to do outbound services. Tourist guides in foreign-invested enterprises must be Vietnamese citizens.

Question: Shall foreign investors be entitled to establishment of 100% foreign-owned capital travel agencies and tour operator in Vietnam?

Answer: According to the commitments of Vietnam as a member of WTO, Vietnam has not undertaken to permit the establishment of 100% foreign-owned capital travel agencies and tour operators yet. Foreign service suppliers are permitted to provide travel agency and tour operator services in the form of joint-ventures with Vietnamese partners with no limitation on foreign capital contribution.

Question: What is the maximum capital contribution ratio of a foreign investor to joint- venture companies engaging in logistics services?

Answer: Pursuant to Clause 3, Article 5, Decree 140/2007/ND-CP dated 5th September 2007, the capital contribution ratio of a foreign investor to joint ventures engaging in logistics services must conform to the following conditions: - In case of doing business in unloading goods, joint ventures with foreign capital contribution not exceeding 50% are permitted. - In case of doing business in warehouse services, joint ventures with foreign capital contribution not exceeding 51% are permitted. Since 2014, no limitation of foreign capital contribution shall be available. - In case of doing business in transportation agency services, joint ventures with foreign capital contribution not exceeding 51% are permitted. Since 2014, no limitation of foreign capital contribution shall be available. - In case of business in other supporting services, joint ventures with foreign capital contribution not exceeding 49% are permitted. Since 2010, the foreign capital contribution shall not exceed 51%. Since 2014, no limitation of foreign capital contribution shall be available.

Question: Shall foreign investors be entitled to doing business in hotel and restaurant services in Vietnam?

Answer: According to the commitment of Vietnam as a member of WTO, foreign investors shall be entitled to establish joint-ventures with foreign capital contribution accounting for the majority or 100% foreign owned capital companies to supply hotel and restaurant services. However, the services provided must be in parallel with investment in hotel construction, renovation, restoration or acquisition. Since 2015, no limitations shall be available.

Question: Which incentives shall be applied to an investment project in the case that the project is entitled to incentives in accordance with both the Law on Investment and other laws?

Answer: The investment project shall be entitled to the highest incentive of only one law.

Question: Where shall first-time foreign investors in Vietnam whose business registration and investment projects are in different provinces apply for the issuance of investment certificate?