Investment and business laws
In 2014, The National Assembly issued Law on Investment (LOI) and Law on Enterprises (LOE).
LOI deals with business investments in Vietnam and outward business investments.
LOE deals with the establishment, organization, restructuring, dissolution, and relevant activities of enterprises.
The breakthrough changes of lOI and LOE have promoted strongly growth of FDI into Vietnam:
- Creating a transparent legal foundation to ensure the implementation of the investment and business freedom principles in industries not prohibited by law.
- Revising and mitigating the business sectors and conditions inappropriate.
- Reinforcement, amendment policies to ensure investing in accordance with terms in Constitution and International treaty in which Vietnam is a member.
- Simplifying documents, processes and procedures, and reducing time for granting the Certificate of investment registration from 45 days to 15 days.
- Perfecting investment incentive policies to enhance the quality and efficiency in investing attraction.
Nowadays, the foreign investor has been offered a significant incentive when investing in Vietnam, which are tax incentives, capital and investing procedures supporting. The Vietnam’s corporate income tax incentives is conducive for businesses with the lower tax rate than other countries. The tax incentives are toward the geographical areas incentives rather than economic sectors.