CONDITIONS TO ESTABLISH A COMPANY IN VIETNAM

Vietnam continues to attract foreign direct investment thanks to its stable economic growth, competitive operating costs, and expanding consumer and talent markets. This report summarizes the core considerations foreign companies should be aware of when establishing operations in Vietnam.

Key Takeaways

• Foreign investors may enter Vietnam through multiple investment forms, including establishing a new economic organization, making capital contributions to existing entities, purchasing shares or capital stakes, implementing investment projects under Vietnamese law, and other forms permitted by Vietnamese law. 
• Certain investment activities are subject to separate regulations for foreign investors, which may differ from those applied to domestic individuals and entities.
• Common corporate structures for foreign companies include Representative Office (RO), Branch Office (BO), and a 100% foreign-owned Limited Liability Company (LLC).
• Company establishment in Vietnam typically involves four key steps:
  • Pre-investment approval (where applicable)
  • Application for the Investment Registration Certificate (IRC)
  • Application for the Enterprise Registration Certificate (ERC)
  • Completion of post-licensing procedures, such as tax registration, banking, and operational setup.