Under the Asean Economic Community (AEC), a single regional common market of Asean countries will be created by 2015. The regional integration's objective is to create a competitive market of over 600 million people in Asean countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. There will be free flow of goods, services, investment capital and skilled labor following the liberalization. These will include tariff reductions and streamlining of certain administrative procedures. Many businesses have begun preparing themselves three years ahead of time to meet the challenges and opportunities of the Asean Economic Community (AEC).
1. General
All investment activities in Vietnam are regulated by the Law on Enterprise (LOE) passed by the National Assembly dated 29 November 2005 and the Law on Investment (LOI) passed by the National Assembly dated 29 November 2005. Both laws became effective as of 1 July 2006.
Corporate income tax
Tax rate
The standard corporate tax rate is 22 percent with effect from 1 January 2014 (previously the rate was 25 percent). The standard corporate tax rate will further reduce to 20 percent from 1 January 2016. Preferential tax rates can be obtained for encouraged projects. See “Other incentives” section for further details. Certain industries may have a higher tax rate applied (e.g. oil and gas operations and natural resources industry − 32 percent to 50 percent).
1. Housing
High quality housing suitable for foreigners is becoming increasing expensive.
Rent for houses in Hanoi and Ho Chi Minh City ordinarily range from US$1,500 to US$6,000 per month, with many of the larger houses featuring gardens and swimming pools. Houses can be either furnished or unfurnished.
In addition, many serviced apartments have been built in the last few years, resulting in good quality accommodation being available from between US$500 to US$5,000 per month, depending on location and service facilities.
1. Entry visas
To visit Vietnam, nationals of most countries require a visa which must be obtained in advance from an overseas Vietnamese embassy or consulate. Visas are only issued on entry to the country in exceptional circumstances, such as natural calamity or departure from a country that does not have a Vietnamese consulate or diplomatic representative. A business or tourist visa for Vietnam can be obtained on submission of the relevant application form, photographs, passport (valid for at least six months) and an invitation letter or other documents indicating the purpose of the visit.
1. Geographical location
Viet Nam is located in the Eastern part of the Indochina peninsula, bordering China to the North, Laos and Cambodia to the West with a long land border of 4,550 km, and facing the Eastern Sea (South China Sea) and the Pacific to the East and the South. With the land area of 331,690 km2, Viet Nam is an S-shaped long strip of land,....stretching from 8°10' to 23°24' North latitude and from 102°09' to 109°30' East longitude. The country's total length is 1,650 km from the Northern most point to the Southern-most point.....
Viet Nam is located in a region considered a cradle of mankind, one of the earliest agricultural centers practicing wet rice farming, where the stone and metallurgical revolutions took place. On the basis of socio-economic development in the time of the Dong Son culture and given the struggle with nature and against aggression, Van Lang State, the first State in Viet Nam was established in the 7th century B.C. Thanks to their hard work and creativeness, Van Lang (and then Au Lac) residents created a civilization that influenced the entire Southeast Asian region...
The National Assembly is the highest representative organ of the people, the highest organ of state power of the Socialist Republic of Viet Nam, the sole organ that has the constitutional and legislative rights. The National Assembly decides the fundamental domestic and foreign policies, the socio-economic tasks, national defense and security issues, the major principles governing the State machinery, the social relations and activities of citizens. The National Assembly exercises the right to supreme supervision of all activities of the State.
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