Investing in Vietnam: A Due Diligence Report

Contents
Introduction................................................................................................................................1
Answer 1....................................................................................................................................1
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................3
Answer 4....................................................................................................................................3
Answer 5....................................................................................................................................4
Answer 6....................................................................................................................................4
Conclusion..................................................................................................................................5
Bibliography...............................................................................................................................5
Introduction
This assignment is just a due diligence of a business which is currently running in Australia
and wants to expand its operations in Country Vietnam. Below are the answers of everything
you need to know before investing in Vietnam and how to invest in Vietnam.
Answer 1
Vietnam is the leading investment place in Southeast Asia. With the benefit of geographical
area, natural resources, and a reasonable labour force, Vietnam attracts a huge amount of
investment each year. Vietnam has a number of unfamiliar sectors and a growing customer
market. There is a hybrid way of doing partnership and limited liability company (LLC), is
also gaining in some status because it will allow proprietors to take advantages of both the
type of benefits of both the company and business the form of partnership. The rewards of the
business set-up are that gains and losses that can be passed without taxation through the
owners of the business itself while owners are protected from the personal type of liability.
Company Structure of a limited-liability company should be adopted. Your only risk is the
capital that you brought in your own business. Also, debts related to business and other types

of liabilities won’t be swept out of assets belonging to you. Caution: If you guarantying your
debt personally, then you've lost your form of limited liability.
Simplified Taxation. All types of Gains and losses will be conveyed and will be taxable on a
return filed by the individual. There's no different commercial tax return unless you are
having more than one shareholder and you choose yourself to be charged as a partnership,
and there's will be no business "double taxation,". In Double taxation business enterprise and
the stockholders are taxed.
Management is Flexible. A member can be any person or a partnership or can be a company
also. Members will get a percentage of their ownership. If people are not able to manage out
from your type of knowledge, then you can hire help from management. Smaller types of
LLCs are typically managed and organized by members, but they are not permanent.
Distribution is Flexible. Gains and losses need not- be circulated in percentage to the money
every person is putting in. A regular business corporation form of business can't assign gains
and losses. And in a business corporation form of business (taxed in the form of partnership),
gains and losses are in percentage of the shares held. (Tseng & Tseng, 2019) (Ahiadorme,
Gyeke-Dako & Abor, 2018)
Answer 2
If there should arise an occurrence of business credit, you're generally responsible for how
the additional capital that you are endeavouring to spend gets spent. A few loan specialists
likewise force certain limitations, yet for the vast majority of the part, what you're subsidizing
is up to you. A business advance won't leave an enduring effect on how your business gets
run, other than the advance consumptions you'll owe.
Obligation financing is an adaptable kind. There are endless differing sorts of business
propels with wide assortments in how a lot of money you'll get and to what extent you'll
make repayments. In the event that the business needs money as right on time as would be
prudent, at that point it ought to be financed through obligation part as it were. You can get
business credits amazingly quick in merely hours, on the off chance that you put on to the
correct moneylenders. In the interim, value financing includes finding for the correct
speculators, jumping your business, drawing up the legitimate papers. In any case, on the off

chance that you are searching for more than cash than value alternative is correct most likely
for you. Obligation financing is value-based. You will acquire from banks; at that point, you
will pay back what you owe. Value speculation will dependably give you access to an
investor's information, contacts and a sort of specialized skill. You get the opportunity to
make an association that could have a monstrously beneficial outcome on your venture,
insofar as you've done organization with the right individuals. On the off chance that all you
need is additional cash in your financial balance, once in the past it may be best not to engage
with investors. (Kalim, Arshed & Shaheen, 2019) (Haj Youssef, Hussein & Christodoulou,
2019)
Answer 3
Domestic borrowing is flexible and on time draw to allow the client to suit urgent cash flow
requirements. Also, Repayments can be made easily by simply crediting the operating
account. And also, domestic borrowing Support business clients in case of short-term
mismatching of cash flow and are mainly involved in working capital requirement. Also,
there will be a fixed interest rate for the duration of each drawing made by the investor. Also,
there is no maximum loan amount. All requests are also considered on their credit policy.
Flexible terms are available to meet your business needs. There will be maintainable liquidity
management due to longer duration to match with cash flow. It will support the borrower to
mobilize bigger loan equating to bilateral loan at a similar period. Also, there will be a single
point of contact by directing through the bank who is arranging the finance. It will also help
to develop a new relationship with the new bank. Domestic borrowing is also cost effective
and it also requires very less administrative burden. (Bettiga & Ciccullo, 2019) (Donald,
2019) (Brun & Karaosman, 2019)
Answer 4
Vietnam is controlled by one and only gathering state Communist Party of Vietnam (CPV)
which gives determined bearing and chooses all central arrangement issues. The nation is
additionally driven by the purported four regal columns which are fundamentally CPV
General Secretary, State President, Prime Minister, and National Assembly Chair. The
arrangement, which incorporates embracing relentlessness, holding the political position quo,
local financial development, and worldwide mix, is made on an understanding premise by the