Corporate Legal Services

Project Transfers Instead of Dissolution in Vietnam: Cost and Time Comparison

Transferring the project usually beats dissolution on two points: the buyer pays for licenses, premises and an existing team instead of the company paying to dismantle them, and exit time shrinks to a fraction — in exchange the seller carries transfer tax and tail liability for its own operating period.

The legal mechanism specific to this issue: transferring the project instead of dissolution cost time comparison

The cost comparison must total both sides: dissolution burns advisory fees, finalisation audit, assessment risk and months of management time with no revenue; a transfer costs brokerage, buyer due diligence and tax, but creates positive cash flow at closing.

The point that decides outcome or cost: transferring the project instead of dissolution cost time comparison

A transfer needs a sellable project: a valid investment certificate, land and sub-licenses free of disputes, and an investor legally permitted to transfer under investment law — a project under inspection or with heavy tax arrears rarely sells at value and can only dissolve.

What to do now, in order: transferring the project instead of dissolution cost time comparison

The two roads’ taxes differ in nature: a capital transfer bears income tax on transfer under current tax law — the Personal Income Tax Law 109/2025/QH15 has replaced Law 04/2007/QH14 for the individual side — while dissolution is taxed through final finalisation and asset liquidation.

Practical conclusion: for transferring the project instead of dissolution cost time comparison, the decisive material is not general commentary but the project’s own file — lock that file down before a dispute arises or the next procedural deadline falls due.

Frequently Asked Questions

Sell the project or dissolve — which is better?

The cost comparison must total both sides: dissolution burns advisory fees, finalisation audit, assessment risk and months of management time with no revenue; a transfer costs brokerage, buyer due diligence and tax, but creates positive cash flow at closing.

How do costs compare?

A transfer needs a sellable project: a valid investment certificate, land and sub-licenses free of disputes, and an investor legally permitted to transfer under investment law — a project under inspection or with heavy tax arrears rarely sells at value and can only dissolve.

How do timelines compare?

The two roads’ taxes differ in nature: a capital transfer bears income tax on transfer under current tax law — the Personal Income Tax Law 109/2025/QH15 has replaced Law 04/2007/QH14 for the individual side — while dissolution is taxed through final finalisation and asset liquidation.

This article has been quality-reviewed by the FLAW AI Legal Council