Successfully planned and executed the merger of two Foreign Direct Investment (FDI) projects, resulting in tax saving, revenue and penalty waivers amounting to over US\$1.1 million.

▪ Secured approval from the Ministry of Finance for the non-cash consolidation structure, enabling the Company to treat it as a merger instead of an acquisition, resulting in savings of over US\$200,000 in taxes.

▪ Successfully navigated the stringent regulations on land/factory re-release and obtained permission from the Binh Duong Industrial Zone Administration (BIZA) to sublease 70% of the factory, leading to savings of more than \$20,000 in lobbying expenses.

▪ Prevented potential penalty arising from contract non-performance, ultimately saving the Company US\$300,000 in penalties.

▪ Generated rental revenue of US\$600,000, effectively covering the initial operational costs prior to the commencement of factory production.


Vietnam has strict policies against re-leasing or subleasing industrial zone properties, except under specific circumstances. In this case, the client had constructed two factory buildings through separate investment projects and had signed a leasing contract with the German automotive company I.G. Bauerhin GmbH (IGB). However, despite multiple attempts by different consultants, the client failed to obtain approval from the provincial authority for over six months, resulting in a significant delay beyond the contractually allowed date. To exacerbate matters, one of the consultants inexplicably revoked the investment license for one of the client's projects. It is evident that engaging in any activities without a valid investment license is a fundamental violation of laws for foreign investors.

Consequently, this incident led to the suspension of IGB's investment license application, leaving the client facing substantial penalties. I was brought in to participate in the final meeting between the client and IGB to find a solution, as IGB was prepared to pursue legal actions to terminate the leasing contract and reclaim the USD\$200,000 deposit along with penalties. During this period, the consulting firm hired by IGB attempted their own approaches but encountered disputes with the authorities, creating a negative impression. The investment license application was at a standstill. IGB was satisfied with what I presented in the meeting and allowed for time to execute the course of actions that I proposed. Nonetheless, I was able to present a satisfactory solution during the meeting, which IGB found agreeable, allowing time for the implementation of the proposed actions.

Immediate action was imperative to salvage the project for which the investment license had been revoked. In light of releasing the property, the most viable option was to merge the two projects into one, ensuring compliance and allowing for the legitimate leasing of the surplus space. To optimize tax benefits, I recommended a 'merger' rather than a complete takeover ('purchase'). However, Hanoi's approval was necessary due to the substantial tax savings involved. Eventually, the merger proposal was approved, resulting in significant tax savings and generating an annual rental revenue of nearly 1 million US dollars for the client. Furthermore, I assisted IGB in obtaining their investment license and navigating the obstacles while fostering constructive relations with the authorities.