Doing Business in Vietnam 2021
Being one of the favored places for foreign investment among Southeast Asian countries in recent years, Vietnam has become an attractive destination for investors. In 2020, Vietnam remains one of the few countries in the world with a positive GDP growth. Although the country is not immune to the global economic downturn, its prospects for recovery remain strong.
To encourage foreign investment, the Vietnamese Government has offered a wide range of investment and tax incentive schemes. For example, the new Law on Investment (LOI) introduced a preferential corporate tax rate of 5% for a maximum period of 37.5 years for large or specially encouraged investment projects. In addition, the Vietnamese Government has prioritized domestic infrastructure improvements and expanded the industrial real estate available to new developers.
To strengthen its connection with the global economy, Vietnam has recently expanded its participation in a number of FTAs with other countries, either as an ASEAN member or on its own. This Guidebook is prepared in a collaboration between Ernst & Young Vietnam Limited and the Foreign Investment Agency of Vietnam to provide interested investors a basic understanding of Vietnam’s investment climate. While this publication provides a broad overview, we highly recommend that any business looking to invest in Vietnam seeks professional advice specific to their circumstances. The information included here is either obtained or derived from a variety of sources in the public domain. The guidebook is up to date as at 10 October 2021. Please be aware that the laws and regulations may change at any time.