What factors should a foreign investor consider in deciding whether to choose a JV (Partly foreign-owned LLC (The Vietnam joint venture company)?

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The two main factors that lead a foreign investor to choose a JV are:

(i) some business sectors in Vietnam require a JV to establish a commercial presence in Vietnam; and
(ii) the Vietnamese party has a key asset, local know-how and knowledge, or other factors that make the JV the preferred choice.

For example, in real estate development projects, the Vietnamese party usually has the land use rights, which by law cannot be directly transferred to a foreign investor, but may be contributed into a JV.

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