A Joint Venture (JV) is a partnership of companies that are created for a specific business purpose. The owning partners of a foreign-invested Joint Venture can comprise at least two foreign entities or at least one foreign and at least one local entity.
Ownership
Statutory guidelines on foreign ownership, impose a minimum contribution of 30 percent. Beyond this, foreign investors may choose a majority stake with ownership exceeding 50 percent, or a minority share ownership of less than 50 percent in most sectors, given that most industries are open to up to 100% foreign ownership. However, the government also mandates minimum contributions for domestic partners in JVs in some industries.
These business fields require a foreign investor to form a joint venture with a local partner to enter the market: For investors purchasing stakes in state-owned enterprises equitized on Vietnam’s exchanges, the JSC structure is required.
Requirements and registered capital
The capital requirements for JVs are the same as for 100 percent FOEs (Foreign-Owned Enterprises):
• Advertising services;
• Agriculture, hunting, and forestry related services;
• Telecommunication services;
• Travel agencies; Tour operator services; Entertainment services;
• Electronic gaming businesses;
• Container handling; Customs clearance services; Auxiliary transport services;
• Internal waterways transport, rail and road transport services.
For investors purchasing stakes in state-owned enterprises equitized on Vietnam’s exchanges, the JSC structure is required.