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