Introduction
Despite various difficulties and challenges from the coronavirus (COVID-19) pandemic, Vietnam has maintained its position as a credible and attractive investment destination for foreign investors, in part because of its abundant labor resources, a stable socio-political situation, infrastructure for manufacturing and circulation, and numerous investment incentives. Even with the COVID-19 pandemic, the Ministry of Industry and Trade (MOIT) has recently announced that the total foreign direct investment (FDI) in the last nine months of 2021 reached US$22.15 billion, an increase of 4.4% over the same period last year.
As a matter of practice, when it comes to making any direct investment in Vietnam, most foreign investors tend to think about setting up a new wholly or partly foreign owned enterprise (which will hereinafter be referred to as a “foreign invested enterprise” or “FIE”), and use the FIE for its (commercial) presence in Vietnam. This Guide will provide general and comprehensive information in terms of the legal framework for setting up FIEs in Vietnam.
