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Covid-19 has been damaging the global economy. It is considered as both a challenge and an opportunity for Vietnamese businesses to break out. So, what should we do to rise up after Covid-19 pandemic? It could be difficult to answer but… we already know the solution.
Talking with Dantri, Mr. Regimantas Pakštaitis - Senior Advisor of One IBC Group in Vietnam, shared his views on how to take advantage of offshore companies to get more benefits for Vietnamese businesses.
According to the International Monetary Fund, the Covid-19 pandemic has created a severe crisis on a global scale. Until November 17, the world recorded over 55.2 million cases, with more than 1.3 million deaths. The global economy will continue to slide on the recession. The number of infections in the "old continent" is growing exponentially. World leading countries such as the UK, Spain, France, and Italy are forecasted to continue plunging.
The economic situation in many developing countries is even worse. The World Bank (WB) estimates that this pandemic will cause more than 100 million people worldwide to fall into unemployment and poverty. Tight support packages from governments also did not help the situation get better. The current economic indicators in many countries are at risk of leading to negative growth and slipping until the end of next year, with a chart of an "L" instead of a "V".
The global economy is in turmoil due to Covid-19
While the world is still struggling with Covid-19, Vietnam has almost contained the spread in the country and is in the stage of focusing on development, taking advantage of opportunities to boost production, increase import and export, etc. The International Monetary Fund forecasts Vietnam’s GDP will increase by 1.6% in 2020.
Analyzing the current general situation, Mr. Regimantas Pakštaitis - Senior Advisor of One IBC Group in Vietnam said that Vietnam is one of the few countries that has safety and is a potential market for foreign investment restructures from China and other countries to Vietnam, in order to avoid a global supply chain breakdown. This shift will create a huge inflow of capital into Vietnam.
"On the other hand, many countries are facing troubles that are "thirsty" for capital investment. In other words, this is an ideal condition for Vietnamese businesses to invest, expand production lines and establish companies abroad (also known as offshore companies) in many countries and territories in the world. Because of the above factors, Vietnam will be among the top countries with the strongest recovery after the Covid-19 pandemic "- Mr. Pakštaitis said.
Many entrepreneurs are asking themselves the questions: What advantages do offshore companies have? Why do businesses need to set up offshore companies?
Setting up an offshore company is not a new strategy. It has been well known that the profits and efficiency from offshore companies have drastically changed the face of many businesses. In the midst of this difficult time, governments of many jurisdictions have continuously updated and issued many preferential policies on tax rates, simplifying procedures, with a view to attract more foreign investments.
According to Mr. Pakštaitis, many Vietnamese businesses are able to export their products and services. The crucial thing at the moment is to recognize the opportunity, catch up with global trends, and at the same time seek reputable experts like One IBC to open an offshore company in the most convenient way.
One IBC has put many Vietnamese companies on the world map
With an offshore company, Vietnamese businesses only have to pay the minimum tax rate (or even be exempt from taxes), and also increase the reputation in the eyes of foreign partners.
For businesses operating in e-commerce, finance-banking service, etc., a Vietnamese company is not enough and they might have difficulty accessing online payment tools. That could lead to a limitation of potential customers they can approach. Businesses can only access to a specific customer range and of course the company's revenue will decrease afterwards.
Meanwhile, businesses with offshore branches in the Netherlands, or Singapore, etc. can easily reach global customers and therefore will boost growth in the long run.
One IBC Vietnam is a certified offshore service provider and has affirmed its high quality service with thousands of customers around the world. Setting up a new company with the highest efficiency? Visit www.oneibc.com for more information on offshore incorporation.
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