In this article, we would like to advise on possibility of forming a foreign invested company (hereinafter referred to as the “NewCo”) in Vietnam to provide information marketing services.
Under Vietnam’s WTO Commitments, there is no any specific commitment engaged by Vietnam from which Vietnam shall open its market to foreign investors to provide information marketing services in Vietnam.
Thus, possibility of setting up the NewCo in Vietnam shall totally depended on master economy development plan of the province or cities where you intend to locate the NewCo. The provincial licensing authorities may also consult Ministry of Industry and Trade, Ministry of Planning and Investment and Ministry of Information and Communication before granting the final decision.
However, it should be noted that, Vietnam Law does not provide any limitation or inhibition measure applied to provision of information marketing services. Also, at present, Vietnam Government implement special policies to pay the way for development of the electronic trade in Vietnam. We therefore expect that response from competent authorities on r application for forming of the NewCo in Vietnam shall be positive.
Form and charter capital of the company
The NewCo can be either of a wholly foreign invested company which is totally owned by the Company from foreign country or a joint venture company jointly owned by the Company from foreign country and local partner(s).
The capital to put in the NewCo should be at least from 80,000USD to 100,000USD. Kindly noted that the Company from foreign country must provide documents to prove that it has sufficient financial ability to make such capital contribution to the NewCo in Vietnam. a
Procedures for forming a foreign invested company in Vietnam to provide information marketing services.
As Provision of Marketing Information is not mentioned in Vietnam WTO’s Commitment. Thus, the application for establishment of the NewCo must undergo the investment evaluation process. Accordingly, before the Licensing Competent Authorities must consult Ministry of Planning and Investment, Ministry of Finance, Ministry of Industry and Trade an Ministry of Information and Communication to determine whether to grant the investment certificate to companyto form the NewCo or not.