Can foreigners establish an enterprise in Vietnam? 

Foreigners are allowed to establish enterprises in Vietnam but must meet the following conditions:

1. Subject conditions

- Full age of majority

- Full civil capacity

- Not subject to criminal prosecution

- Not currently serving a penalty

- Nationality of a WTO member country

2. Industry and business are not allowed to invest in Vietnam and business is restricted

According to Appendix 1 of Decree 31/2021/ND-CP For example

For example:

- Enterprises established by foreigners will not be allowed to provide services of sending workers to work abroad under contracts (labor supply);

- Foreigners are not allowed to provide inspection and certification services for means of transport.

3. Market access conditions for foreign investors

- compliance with commitment 318/WTO/CK corresponding to the scope of Vietnam's operations and business services;

- meet legal conditions (on charter capital ownership ratio of foreign investors in economic organizations; investment form; scope of investment activities...)

For example:

- Services packaging printing in other business services, with restrictions on charter capital ownership ratio and investment form, specifically:

• Charter capital ownership ratio of foreign investors in the organization economic: does not exceed 51%;

• Investment form: joint venture.

- Construction works in the construction services industry, with restrictions on subjects and scope of activities, specifically:

• Foreign investors: must be legal entities of a WTO member or a country ASEAN member;

• Scope of activities: construction of high-rise buildings, construction of civil engineering works, completion of installation, completion of high-rise buildings, other construction works.

4. Procedures For Establishing A Foreign Capital Company In Vietnam

There are 2 ways to open a foreign company in Vietnam:

4.1. Method 1: Establish a company with Vietnamese capital and then transfer;

- Step 1: Register to establish a company with 100% Vietnamese capital;

- Step 2: Carry out procedures for transferring capital to foreigners

4.2. Method 2: Establish a company with direct foreign capital from the beginning.

- Step 1: Carry out procedures to apply for an investment certificate for foreigners;

 - Step 2: Register to establish a company or business.

Note: An enterprise shall have at least one legal representative residing in Vietnam. Whenever this representative leaves Vietnam, he/she has to authorize another Vietnamese resident, in writing, to act as the legal representative.

For more information, please contact:

DRAGON LAW FIRM

Office: Room 6, Floor 14, VIMECO Building, Pham Hung Road, Trung Hoa Ward, Cau Giay District, Hanoi

Branch: No. 102 Lot 14, Le Hong Phong Road, Dang Lam Ward, Hai An District, Hai Phong City

Hotline: 1900.599.979

Mobile: 0983.019.109 / 0974.422.331 / 098.174.3559 (foreign clients)