Under Vietnam Law, a foreign investor can directly engage in the Vietnamese market in following ways:
- Establishment of a new company;
- Buying in an existing company with an active management role;
- Setting up a branch or representative office;
- Engaging with a Business Cooperation Contract with local partner(s).
The choice of investment form will totally depend on the investment aims of foreign investor. It also may be regulated by specific rules applying to particular sectors. For instances, with respect to foreign investments in services sector, Vietnam’s WTO Commitments will be a key determinant in selecting the form of investment.
Licensing authorities in Vietnam shall generally apply these commitments as de-facto limitations on foreign ownership, approving foreign investment in accordance with specified schedule of its commitments.
Some of these commitments specify that investment in certain service sectors may only be made in the form of a joint venture or a Business Cooperation Contract with a Vietnamese partner.