Considering Withdrawal from Vietnam?... Samil PwC Launches 'One-Stop Advisory Service'

From Identifying Buyers to Addressing Tax Issues

Samil PwC announced on May 23 that it has launched a one-stop integrated advisory service for companies considering withdrawal from the Vietnamese market.

Samil PwC plans to provide tailored solutions covering the entire process, including identifying buyers, conducting due diligence, designing transaction structures, negotiating contracts, handling remittance procedures, and addressing tax issues. In particular, the company intends to offer optimized consulting services based on its experience advising on exits from the Chinese market. Vietnam has a regulatory and administrative environment similar to that of China. In a situation where there are limited local companies in Vietnam with acquisition capacity, it is also possible to establish divestment strategies by leveraging a network of potential investors from neighboring regions such as China and Singapore.

Lee Hoerim, the partner overseeing this service and responsible for cross-border M&A for mid-sized companies at the Samil PwC Southeast Asia Business Platform, has successfully completed a total of about 30 Chinese company repatriation deals since 2017. Lee also has the capability to secure a diverse range of overseas potential investors by having built cooperative relationships with major investment banks, law firms, and real estate agencies in China and across Asia.

Lee advised, "When withdrawing from business in Vietnam, companies must consider not only the usual asset and equity sales but also various administrative procedures and issues." Lee added, "In particular, unexpected risks may arise during the investment recovery and restructuring process, so it is necessary to conduct sufficient consultations and reviews with the relevant authorities together with experts." In Vietnam, when a foreigner sells equity, prior M&A approval procedures may be required under investment law. Even after the sale, companies must resolve issues such as changes to the Enterprise Registration Certificate (ERC) and Investment Registration Certificate (IRC), local administrative procedures in Vietnam for receiving sale proceeds, and tax matters related to the transfer of equity above a certain threshold.

In addition, Samil PwC plans to manage the complex withdrawal process more safely and efficiently by matching with multinational capital and collaborating with accounting and tax experts in various countries through the PwC global network.