My name is Peter, i work for Russian company. We manufacture are export precious metals and jewelry.
Vietnam market looks really attractive for us and we are looking for opportunity to move part of our factory into Vietnam SEZ (special economic zones) for manufacturing and selling our products in Vietnam and other countries as well.
In this case, we need an agent who can firstly prepare special overview about rules, taxes etc. for us and then help us on every step in law side.
Could your company provide it?
Answer: This is a reference to your conversation below. I am Lawyer of SB Law. I was entrusted to support you regarding setting up the manufacture factory in Vietnam for exportation of precious metals and jewelry.
Under Vietnam Law, a foreign investor is entitled to setup either a wholly foreign owned company or joint venture company (a company co-owned by foreign investors and pure local investors) for running an investment project.
An investment project shall last up to 50 years (renewable). Base on the proposal for the investment project, the competent authority shall determine the validity term of Investment Registration Certificate granted to your investment project in Vietnam.
Similar to other normal Vietnamese companies, wholly foreign owned company or joint venture company shall be subject to following taxes:
(i) Business License Tax: 1,000,000VND-3,000,000VND (about 43-132 USD) per year depending on the amount of investment capital registered by you.
(ii) Corporate Income Tax: 20% of profit earned by the Company. In case, you invest at least 263 mil USD and disburse the investment capital within 03 years from granting the investment registration certificate and the total revenue is from 438 mil per year within first 03 years from the first year in which the revenue is earned, you shall be entitled to incentive tax rate of 10% within 15 years, tax exemption for 4 years, reduction of 50% of tax payable for the next 9 years. You shall be entitled to tax exemption for 4 years, a reduction of 50% of tax payable for the next 9 years if you run your investment project in industrial zones located in suburban areas in Vietnam.
(iii) VAT: 5-10%. If you export all your manufactured products, you shall be subject to VAT 0%.
We can assist you to obtain Investment Registration Certificate and Enterprise Registration Certificate, obtaining all required license for setting up the factory in Vietnam. In order to provide you a quotation for this, please help answer following questions:
- Where will you locate the factory? Please let us know your prefered provinces/cities.
- How much do you intend to invest into Vietnam? (your planned fund for land, construction, machine and licensing cost).
- How large the factory will be?
- When do you want to actually start manufacturing activities?
We do hope that the above information is helpful for you. If you have any inquiries, please feel free to contact us. We look forward to hearing from you soon.
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