What is 100 percent foreign-owned enterprise under Vietnamese law?

In Vietnam, a wholly-owned enterprise (100 percent foreign-owned enterprise) is an independent legal entity owned and established by a foreign investor under the Laws on Enterprise and Laws on Investment of Vietnam under which the foreign investor owns 100 percent of the capital of the company and will manage the enterprise and assume full responsibility for its debt and liabilities.

An existing 100 percent FOE in Vietnam may cooperate with another 100 percent foreign-owned enterpriseand/or with foreign investor(s) to establish another new 100 percent foreign-owned enterprise. A 100 percent foreign-owned enterprisemay be established as a joint stock company or a limited liability company. A 100 percent foreign-owned enterpriseallows an investor to maintain independence and have management control over business.