Manufacturing is without doubt one of the powerhouse business sectors in Vietnam. It is very exciting to consider that the industrialisation of Vietnam is still in its relatively early stages, and that the very significant successes that Vietnam has achieved as a manufacturing jurisdiction to date are but an excellent, early indication of what the future holds.
From a foreign investment perspective, the manufacturing sector is amongst the most attractive sectors available in Vietnam. As a general proposition, there are no foreign ownership restrictions, meaning that in relation to the manufacture of most (but not all) kinds of products, it is possible to establish 100% foreign-owned manufacturing companies (or to acquire up to 100% of existing, domestic, Vietnamese manufacturing companies).
Manufacturing also benefits from the availability of numerous industrial or other special economic zones in numerous cities and provinces throughout Vietnam. Generally, to establish a new foreign-invested company within an industrial or other special economic zone is comparatively less onerous, from a bureaucracy perspective, than to establish outside of any such zones, and the process of applying for and obtaining construction-related approvals in particular tends to be more streamlined within industrial or other special economic zones.
The Vietnamese Government also provides various kinds of financial or other incentives to foreign investors who establish manufacturing enterprises in Vietnam.
Whereas in recent years many global companies have viewed Vietnam as a “China plus one” manufacturing jurisdiction, many are now turning to Vietnam as their primary manufacturing jurisdiction in Asia. Vietnam boasts numerous advantages such as competitively priced labour, legal and political stability, and an eager, literate, and hard-working labour force, which have begun to see Vietnam surge ahead of its regional competitors as a manufacturing jurisdiction of choice.
Advising on the restructure of a manufacturing company in Vietnam, involving the sale of assets to an interested third party to extinguish debts owed to secured domestic and foreign creditors.
Acting as Vietnam counsel for Japan’s largest steel manufacturing company, on an on-going basis, including the provision of legal advice and assistance in relation to many aspects of this client’s investments and general operations in Vietnam.
Advising a large US manufacturer and supplier of semiconductors and related electronic components on its acquisition of a large scale manufacturing subsidiary in Vietnam.
Advising a US company on its proposed acquisition of a company that manufactures blades and other similar products, and with the main manufacturing operation located in Vietnam. Frasers conducted comprehensive legal due diligence investigations into the Vietnam subsidiary of the target company, and its manufacturing operations.
Acting for a leading US venture capital and private equity firm on its successful acquisition of a US semi-conductor manufacturer with substantial operations in Vietnam.
Advising a Thai furniture manufacturer on the establishment of a company in Vietnam for distribution of furniture and kitchens in Vietnam.
Advising China’s largest privately owned paper manufacturer on its proposed investment in the establishment of a wood-whittling plant and seaport in Vietnam.
Advising a unique manufacturer of Belgian chocolates in Vietnam on strategic structuring alternatives to ensure that it was able to fund its planned CAPEX requirements.