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Vietnam Foreign Investment Policy
In December 1987, the National Assembly approved a new
foreign investment code in an apparent effort to bypass boycott
restrictions and deal directly with Western and regional
businesses. The legislation, which was much more liberal than
foreign investment laws in use in other communist states, gave
more concessions to foreign investors than similar Vietnamese
laws that had been enacted in 1977. The new code used low
taxes--20 to 30 percent of profits--to encourage joint ventures
and permitted wholly owned foreign enterprises in Vietnam. The
code, which was designed to emphasize the development of export
industries and services, also granted full repatriation of
profits after taxes and guaranteed foreign enterprises against
government expropriation. The new law also encouraged oil
exploration and production contracts.
Data as of December 1987
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