In our consulting experience, SB Law see many foreign investors coming to Vietnam service market. It is considered as the potential market to explore.
The popular question of many foreign investors is the legal procedure to establish a foreign-owned company in painting service. Are the foreign investors able to run a business in this area in Vietnam?
Regarding to the painting service, it is categorized with code CPC 885– Services in related to manufacturing. Under the Vietnam’s commitment to WTO, “Within 3 years since the access, it is permitted to establish a foreign-owned company with no exceed to 50% foreign capital. After 5 years, it is permitted to establish a wholly foreign-owned company”;
Thus, until now, in February 2013, the foreign investors have not been able to establish a wholly foreign-owned company, but a joint venture with Vietnamese investor under the formation of Joint-stock company or Limited company.
The capital contribution rate for the foreign investors is 50% of the charter capital.
There is a note for the foreign investors that painting service has bad influence on the environment. Thus, it should be located in the industry area with the best infrastructure and environment managing system. Additionally, not many industry areas allow this service. For instance, the food industry area can not include this service;
Regarding to the plant, the foreign investors can lease the land to build a plant or lease an available plant. The available plant must have the Certificate of ownership/use, fire prevention, environment influence assessment …