This book researchs and mentions to six respects such as: Country Profile, Trade and Investment, Setting up an investment in Vietnam, Taxation and Customs, Human Resources and Employment, Foreign Exchange Control.
Population: Over 95 million people, ranked 15th in the list of most populated countries
People of working age in employment: 48.2 million people (50.7 of total population) A youthful and vibrant country with digitally-savvy and well-educated workforce, a developing culture of entrepreneurship, and openness to new ideas.
Unemployment rate: 2.24
Nominal GDP ( 2017): USD 220.6 billion
Annual GDP growth averaging 6.4% since 2014
GDP per capita (2017): USD 2,385.
Vietnam has fast growing economy with GDP growth projected to be between 6% to 7% during 2016-2018 period
Political environment: Stable and attractive business environment with high incentives for foreign investors.
16 FTAs with major developed markets: Vietnam’s economy continues its fast growth driven by free trade agreements (FTAs) with major developed countries and increasingly deregulated business environment.
Language: Vietnamese (official language), English (taught widely at school as a second language)
Vietnam has established diplomatic relations with 185 countries, expanded commercial and investment relations with more than 220 markets and signed more than 70 Double Tax Avoidance Agreements.
Key trade pacts include:
ASEAN Economic Community (AEC) (launched in December 2015)
Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP) (signed on March 8th, 2018)
Regional Comprehensive Economic Partnership (RCEP) (on-going negotiation)
Free trade agreements signed as an ASEAN member country
In term of Foreign Direct Investment, Foreign direct capital in 2017 totaled USD 37.1 billion – the highest recorded. Vietnam is one of the only few countries in the region that allows 100% foreign ownership for most sectors. 375 SOEs will be partially or wholly divested during 2017-2020 period.
FDI is concentrated much on some sectors such as: manufacturing, real estate energy, retail, and construction and some populated cities with modern infrastructure and agglomerated convenience (e.g. Hanoi, Ho Chi Minh City, Da Nang)
The Vietnamese tax system is comprised of the following: Corporate Income Tax (CIT); Personal Income Tax (PIT); Value Added Tax (VAT); Foreign Contractor Withholding Tax (FCWT); and Other taxes (i.e. Special Sales Tax, Import & Export Duties, Natural Resources Tax, Property Tax, Environment Protection Tax, Business License Duty & Registration Fee).
All taxes are levied at the national level. There are no local taxes. Please read full guide book for your further reading.
Vietnam is well-known for a disciplined, hard-working, and fast- learning population. Traditions emphasizing learning and respect for authority, as well as low wages and a high adult literacy rate, are often cited by investors as among the most attractive aspects of the country’s investment environment.
You can find out many espects relating to labor law in Vietnam in this guidebook such as: the insurance contributions percentage for eligible employees, employment termination allowance, employment of foreigners, work permit & visa application, etc.
Sources: Foreign Investment Agency of Vietnam, Deloitte Vietnam