Investment Consulting in Vietnam: Business Sectors and Practical Experience.

Investment consulting services in Vietnam are increasingly affirming their essential role in supporting investors—from individuals to organizations—in achieving their financial objectives. Professional investment consulting firms provide clients with optimal solutions, from assessing investment opportunities and managing investment portfolios to maximizing returns and minimizing risks. With a team of highly experienced experts and deep market understanding, investment consulting services in Vietnam not only help clients achieve their expected profits but also contribute to the sustainable development of the economy.

What Is a Business Line?

A business line refers to economic activities conducted by enterprises or individuals for the purpose of generating profits. It covers a wide range of sectors such as manufacturing, commerce, services, construction, agriculture, and many others. Each business line has its own characteristics regarding the products and services offered, operational processes, and requirements for specialized skills.

Why Are Investment Consulting Services Needed in Vietnam?

Investment consulting services play a crucial role in helping investors make informed decisions—from selecting an investment sector to analyzing risks and opportunities. Key reasons why investors need these services include:

• Expertise and knowledge: Investment consulting firms typically employ experienced specialists capable of analyzing markets and proposing effective investment strategies.
• Time-saving: Conducting market research and analysis can be time-consuming. Consulting services help investors save both time and effort.
• Risk mitigation: Mistakes in investing may lead to significant financial losses. Experts can help investors identify and assess potential risks.

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Notes When Selecting Business Lines Under Vietnamese Law

Do Not Select Prohibited Business Lines

Avoiding prohibited business lines is essential to ensure legal and sustainable business operations. Prohibited business activities typically involve activities that may harm health, safety, social order, or public morality. According to Clause 1, Article 7 of the 2014 Law on Enterprises, enterprises have the freedom to conduct business in any sector not prohibited by law.

Specifically, Article 6 of the 2014 Law on Investment lists prohibited investment and business activities, including: trading narcotics; trading certain chemicals and minerals; trading specimens of wild fauna and flora listed in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES); trading endangered, precious, and rare wildlife specimens of Group I sourced from the wild; prostitution; human trafficking, trading of human tissues and organs; business activities related to human cloning.

Meeting Business Conditions

To meet business conditions, enterprises must comply with specific legal requirements applicable to their selected business lines under the Law on Investment and ensure that these conditions are maintained throughout the business operation.

Conditional Business Lines

Enterprises may only operate conditional business lines after satisfying all legally required conditions and must continue to comply throughout their operations.

Principles When Selecting Business Lines

– Selecting a level-four business line:

Enterprises must select a level-four economic sector within the Vietnamese Standard Industrial Classification system, coded according to regulations of the Ministry of Planning and Investment.

This business line will be recorded in the enterprise registration certificate and is crucial for economic statistics.

– For conditional investment and business lines:

Compliance with applicable legal documents is required. These conditions are generally provided for in government decrees or ordinances issued by the Standing Committee of the National Assembly.

– Business lines not included in the Vietnamese industrial classification system:

For business activities not listed in the system but regulated by other legal documents, enterprises must comply with such documents and follow the required legal procedures.

For business lines not included in the system and not yet regulated, the business registration authority may consider recording the line in the National Enterprise Registration Database, provided that it is not a prohibited business line. They must also notify the Ministry of Planning and Investment for potential inclusion of the new business line.

Practical Experience in Investment Consulting in Vietnam

Investing in Vietnam offers numerous opportunities but also presents challenges. Below are several practical insights investors should consider:

Market research

Before investing, take time to study the target market. This includes:

• Economic trends: Monitor macroeconomic indicators such as GDP, inflation, and unemployment rate.
• Promising sectors: Identify emerging sectors such as technology, real estate, or manufacturing.
• Local information: Understand conditions in the specific region where you plan to invest.

Legal regulations

Vietnam has many legal requirements related to investment:

• Investment licenses: Understand licensing requirements, especially if you are a foreign investor.
• Ownership rights: Know the laws on asset ownership, particularly in real estate.

Building relationships

Relationships play a vital role in investing in Vietnam:

• Connect with local partners: Work with experienced individuals or organizations in the sector.
• Attend seminars and events: These are valuable opportunities to meet other investors and share experiences.

Risk management

Investment always carries risks. Some ways to manage risks include:

• Diversifying investment portfolios: Do not put all capital into a single sector or asset.
• Setting loss limits: Determine the level of acceptable loss before investing.

Monitoring and evaluation

After investing, continuous monitoring is crucial:

• Regular updates: Follow relevant news about the sector and the companies in your portfolio.
• Reassessing strategies: Adjust your investment strategy if market conditions change.

Selecting a reputable consulting firm

If you lack experience, working with a reputable investment consulting firm can help minimize risks:

• Research the firm: Evaluate experience, reputation, and client feedback.
• Clarify costs and services: Ensure you understand all fees associated with consulting services.

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Investment Consulting in Vietnam for Conditional Business Lines

Business conditions:

Business conditions are expressed through various forms: Conditional business lines are those for which the Law, Ordinances, or Decrees stipulate conditions or requirements that an enterprise must satisfy to operate. Conditions applicable to enterprises in these areas may include:

– Business licenses;

– Certificates of business eligibility;

– Practicing certificates;

– Professional liability insurance certificates;

– Confirmation of legal capital;

– Other approvals issued by competent state authorities;

– Other requirements that enterprises must satisfy to operate in those business lines, without the need for any confirmation or approval from competent authorities.

Investment Consulting Services in Vietnam Provided Under BKC Law Regulations

Legal investment consulting

BKC Law provides comprehensive legal consulting services for both domestic and foreign investors, including:

– Investment licensing consultation: Guidance on procedures for obtaining investment licenses, conditions, and required documentation under Vietnamese law.

– Feasibility assessment: Analysis of risks and investment opportunities across sectors to support informed decision-making.

– Ownership regulation consultation: Assistance with understanding regulations on property ownership, especially in real estate and conditional sectors.

Administrative procedure support

BKC Law also assists investors in administrative procedures such as:

– Preparing licensing applications: Preparing and submitting investment license applications, enterprise registration certificates, and related documents.

– Registration of investment changes: Guidance and procedures for investors wishing to modify their investment content.

– Project liquidation procedures: Detailed instructions on required procedures for investment project liquidation.

Market and sector consultation

BKC Law supports investors by providing insights into markets and potential investment sectors:

– Market analysis: Reports and analysis on economic trends, market conditions, and investment opportunities in specific sectors.

– Sector consultation: Assistance in identifying high-return investment sectors—from technology and real estate to manufacturing and services.

Ensuring legal compliance

A key service of BKC Law is ensuring that all investor activities comply with legal regulations:

– Compliance audits: Evaluation to ensure investment activities do not violate current laws.

– Updates on new regulations: Notification regarding any legal changes that may impact investment activities.

Consultation on investment dispute resolution in Vietnam

In case of disputes, BKC Law offers consulting and representation services:

– Dispute resolution consultation: Support in negotiation and mediation of investment-related disputes.

– Legal representation: Representation in litigation or arbitration proceedings for investment disputes.

With an experienced team of lawyers and experts, we are committed to providing optimal and effective solutions in the field of investment consulting in Vietnam under current laws. BKC Law is proud to be a trusted partner of numerous domestic and international enterprises, helping clients seize opportunities, minimize risks, and maximize benefits in their investment activities. We continuously update the latest legal regulations, allowing clients to focus confidently on their business operations. Let BKC Law accompany you on your journey to success.

For free legal consultation at BKC Law, you may contact our lawyers via:

Phone: 0901 3333 41

Email: info@bkclaw.vn

Office – District 1: 9th Floor, Diamond Plaza, 34 Lê Duẩn, District 1, Ho Chi Minh City

Office – Bình Tân: 41 Tên Lửa, Bình Tân District, Ho Chi Minh City

Facebook: https://www.facebook.com/luattrunghieubkc

LinkedIn: https://www.linkedin.com/company/103064761

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