{"id":1596,"date":"2017-06-05T04:49:23","date_gmt":"2017-06-05T04:49:23","guid":{"rendered":"http:\/\/unilaw.vn\/?p=1596"},"modified":"2024-12-04T17:28:44","modified_gmt":"2024-12-04T17:28:44","slug":"establishment-of-a-foreign-invested-company-in-vietnam","status":"publish","type":"post","link":"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html","title":{"rendered":"FOREIGN INVESTMENT IN VIETNAM: UPDATED FOR 2024"},"content":{"rendered":"<h2>FOREIGN INVESTMENT IN VIETNAM: UPDATED PROCEDURES AND REQUIREMENTS FOR 2024<\/h2>\n<h3>Overview of Foreign Investment in Vietnam<\/h3>\n<p>Vietnam has grown into a key destination for foreign investors looking to establish a presence in Southeast Asia. The Vietnamese government actively encourages foreign investment through policies and incentives aimed at economic growth and international cooperation. To successfully initiate an investment project, foreign investors must comply with the Law on Investment and the Law on Enterprises, with recent updates effective from 2020 and detailed in relevant decrees in 2021 and beyond\u200b\u200b.<\/p>\n<h3>Definition of Foreign Investors and Legal Framework<\/h3>\n<p>According to Vietnam\u2019s Law on Investment, a foreign investor includes individuals or entities with foreign nationality or origin engaging in business or investment activities within Vietnam. The legal foundation for foreign investment in Vietnam is shaped by two primary laws:<\/p>\n<ol>\n<li><strong>Law on Investment (No. 61\/2020\/QH14)<\/strong> \u2013 Governing conditions, scope, and forms of foreign investment\u200b.<\/li>\n<li><strong>Law on Enterprises (No. 59\/2020\/QH14)<\/strong> \u2013 Outlining the establishment, management, and registration processes for foreign-invested companies\u200b.<\/li>\n<\/ol>\n<h3>Forms of Foreign Investment in Vietnam<\/h3>\n<p>Vietnam permits various investment forms to facilitate foreign participation. These include establishing joint ventures with Vietnamese partners, 100% foreign-owned companies, and project-specific investment contracts such as Business Cooperation Contracts (BCCs).<\/p>\n<p>Foreign investors can also invest in Vietnamese enterprises through <strong>equity acquisitions<\/strong>, allowing ownership across a wide range of industries while adhering to specific capital contribution limits in sectors such as finance, banking, and real estate. Such restrictions aim to balance foreign control with national interest, aligned with international trade agreements that Vietnam is a signatory to\u200b.<\/p>\n<h3>Steps for Establishing a Foreign-Invested Company in Vietnam<\/h3>\n<p>The process for establishing a foreign-invested company consists of several mandatory steps, as outlined below:<\/p>\n<h4>Step 1: Obtain an Investment Registration Certificate (IRC)<\/h4>\n<p>The <strong><a href=\"https:\/\/unilaw.vn\/en\/judgment-analysis\/adjustment-of-the-investment-registration-certificate-in-vietnam.html\">Investment Registration Certificate<\/a><\/strong> (IRC) grants permission for foreign investment and is a prerequisite for foreign investors to launch projects in Vietnam. This certificate confirms the investment\u2019s legal scope, funding details, and compliance with Vietnam\u2019s sector-specific laws. Steps include:<\/p>\n<ul>\n<li>Submitting required documents to the investment registration office.<\/li>\n<li>Receiving the IRC, generally issued within 15 working days if all requirements are met.<\/li>\n<\/ul>\n<p>For certain projects, approval may involve an <strong>investment policy decision<\/strong> by the government, particularly for investments in restricted or sensitive sectors\u200b.<\/p>\n<h4>Step 2: Obtain an Enterprise Registration Certificate (ERC)<\/h4>\n<p>Following the IRC, the investor must apply for an <strong>Enterprise Registration Certificate<\/strong> (ERC) to establish a legal business entity, such as an <a href=\"https:\/\/unilaw.vn\/en\/judgment-analysis\/guide-to-establishing-a-vietnam-limited-liability-company-llc.html\">LLC<\/a> or joint-stock company. The ERC issuance involves:<\/p>\n<ul>\n<li>Filing the application with Vietnam\u2019s business registration authority.<\/li>\n<li>Receiving the ERC within three working days, given the application\u2019s compliance.<\/li>\n<\/ul>\n<p>The ERC validates the entity\u2019s legal standing, allowing it to perform commercial operations within Vietnam\u200b\u200b.<\/p>\n<h4>Step 3: Post-Registration Procedures<\/h4>\n<p>Upon obtaining both the IRC and ERC, the investor must complete additional procedures to operationalize the business:<\/p>\n<ul>\n<li><strong>Seal Registration<\/strong>: Registering the enterprise\u2019s seal design with the business registration office for official documentation.<\/li>\n<li><strong>Tax Code Registration<\/strong>: Enrolling the company with the tax authority and acquiring a tax code.<\/li>\n<li><strong>Announcement of Business Registration<\/strong>: Publishing the entity&#8217;s business registration on the national business registration portal.<\/li>\n<\/ul>\n<p>Failure to comply with post-registration procedures may lead to penalties or revocation of registration status\u200b.<\/p>\n<h3>Key Updates for Foreign Investors in 2024<\/h3>\n<p>Vietnam\u2019s regulations continue to evolve to streamline foreign investment processes. Key updates relevant to foreign investors include:<\/p>\n<ul>\n<li><strong>National Database Integration<\/strong>: Foreign-invested enterprises are now required to update and maintain accurate records on the National Business Registration Portal, which integrates with tax and social insurance databases for streamlined compliance\u200b.<\/li>\n<li><strong>Online Submission and Tracking<\/strong>: Investors are encouraged to use Vietnam\u2019s online platforms, such as the National Foreign Investment Information System, for submission and tracking of investment-related documents\u200b.<\/li>\n<li><strong>Sector-Specific Compliance<\/strong>: Sectors like finance, real estate, and media may have foreign ownership caps, reflecting Vietnam\u2019s adherence to commitments under international trade agreements, including WTO and CPTPP.<\/li>\n<\/ul>\n<h3>Legal Compliance and Additional Permits<\/h3>\n<p>In addition to the IRC and ERC, foreign-invested enterprises may require additional licenses, such as <strong>business permits<\/strong> for operations in specific sectors like import-export or retail. Compliance with these regulations ensures alignment with both national laws and international agreements on market access.<\/p>\n<h3>Support Services for Foreign Investors<\/h3>\n<p>Foreign investment in Vietnam is intricate, involving multiple stages and sector-specific requirements. <strong>Unilaw<\/strong>, a leading Vietnamese <a href=\"https:\/\/unilaw.vn\/en\/about-unilaw\/international-law-firm-in-vietnam\">law firm<\/a>, offers comprehensive legal services for foreign investors. The firm provides expertise in securing necessary permits, ensuring regulatory compliance, and navigating Vietnam\u2019s evolving legal landscape\u200b.<\/p>\n<h3>Benefits of Foreign Investment in Vietnam<\/h3>\n<p>Vietnam\u2019s attractive economic incentives for foreign investors include:<\/p>\n<ul>\n<li><strong>Corporate Income Tax Incentives<\/strong>: Preferential tax rates are available in certain sectors and regions.<\/li>\n<li><strong>Land Use and Infrastructure<\/strong>: Special Economic Zones (SEZs) offer reduced land-use fees and access to high-quality infrastructure.<\/li>\n<li><strong>Labor and Workforce Support<\/strong>: Vietnam\u2019s labor force is young and skilled, providing a competitive advantage for sectors like manufacturing and technology.<\/li>\n<\/ul>\n<p>These benefits, coupled with Vietnam\u2019s stable economy and favorable trade relations, continue to draw global investors seeking a strategic presence in Southeast Asia.<\/p>\n<h3>Conclusion: Foreign Investment in Vietnam<\/h3>\n<p>For foreign investors, <strong>foreign investment in Vietnam<\/strong> presents vast opportunities backed by government incentives, robust legal frameworks, and streamlined registration processes. Staying compliant with the latest legal updates in 2024 ensures a smooth investment journey. Investors are encouraged to engage experienced legal advisors to navigate complex regulations and capitalize on Vietnam\u2019s investment potential.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FOREIGN INVESTMENT IN VIETNAM: UPDATED PROCEDURES AND REQUIREMENTS FOR 2024 Overview of Foreign Investment in Vietnam Vietnam has grown into a key destination for foreign investors looking to establish a presence in Southeast Asia. The Vietnamese government actively encourages foreign investment through policies and incentives aimed at economic growth and international cooperation. To successfully initiate &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html\" class=\"more-link\">>>>>> <span class=\"screen-reader-text\"> &#8220;FOREIGN INVESTMENT IN VIETNAM: UPDATED FOR 2024&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":3362,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[104],"tags":[144],"class_list":["post-1596","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment-law","tag-foreign-investment-in-vietnam"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FOREIGN INVESTMENT IN VIETNAM: UPDATED FOR 2024 - UniLaw - Investment and Maritime Law Firm in Vietnam<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html\" \/>\n<meta property=\"og:locale\" content=\"vi_VN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FOREIGN INVESTMENT IN VIETNAM: UPDATED FOR 2024 - UniLaw - Investment and Maritime Law Firm in Vietnam\" \/>\n<meta property=\"og:description\" content=\"FOREIGN INVESTMENT IN VIETNAM: UPDATED PROCEDURES AND REQUIREMENTS FOR 2024 Overview of Foreign Investment in Vietnam Vietnam has grown into a key destination for foreign investors looking to establish a presence in Southeast Asia. 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The Vietnamese government actively encourages foreign investment through policies and incentives aimed at economic growth and international cooperation. To successfully initiate &hellip; >>>>> \"FOREIGN INVESTMENT IN VIETNAM: UPDATED FOR 2024\"","og_url":"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html","og_site_name":"UniLaw - Investment and Maritime Law Firm in Vietnam","article_publisher":"https:\/\/www.facebook.com\/congdongdoanhnghiep","article_published_time":"2017-06-05T04:49:23+00:00","article_modified_time":"2024-12-04T17:28:44+00:00","og_image":[{"url":"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEjLa3A85UCDT93D9x4xn_h8O8pH7SKUdp41XN4hLeTajnt1SyYcNfM1SwlJBwuQHs1PSIKAyb1kWL8Czt9b7rM_E-8nivRG-XSN63OdKj5g-cwgA95ENJnmnKl7SC4H71ZaceGUIPPD3grVC3i9Q4gGP66RWatvFdtQpH_WXwN_lCcutgAcB96_GbPIRmA\/s1250\/Rocky-cliff-overlooking-ocean.jpg","type":"","width":"","height":""},{"width":1250,"height":679,"url":"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEjLa3A85UCDT93D9x4xn_h8O8pH7SKUdp41XN4hLeTajnt1SyYcNfM1SwlJBwuQHs1PSIKAyb1kWL8Czt9b7rM_E-8nivRG-XSN63OdKj5g-cwgA95ENJnmnKl7SC4H71ZaceGUIPPD3grVC3i9Q4gGP66RWatvFdtQpH_WXwN_lCcutgAcB96_GbPIRmA\/s1250\/Rocky-cliff-overlooking-ocean.jpg","type":"image\/jpeg"}],"author":"Unilaw","twitter_card":"summary_large_image","twitter_image":"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEjLa3A85UCDT93D9x4xn_h8O8pH7SKUdp41XN4hLeTajnt1SyYcNfM1SwlJBwuQHs1PSIKAyb1kWL8Czt9b7rM_E-8nivRG-XSN63OdKj5g-cwgA95ENJnmnKl7SC4H71ZaceGUIPPD3grVC3i9Q4gGP66RWatvFdtQpH_WXwN_lCcutgAcB96_GbPIRmA\/s1250\/Rocky-cliff-overlooking-ocean.jpg","twitter_misc":{"\u0110\u01b0\u1ee3c vi\u1ebft b\u1edfi":"Unilaw","\u01af\u1edbc t\u00ednh th\u1eddi gian \u0111\u1ecdc":"5 ph\u00fat"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html#article","isPartOf":{"@id":"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html"},"author":{"name":"Unilaw","@id":"https:\/\/unilaw.vn\/en\/#\/schema\/person\/7be43a02f487ee9142454174ef388a75"},"headline":"FOREIGN INVESTMENT IN VIETNAM: UPDATED FOR 2024","datePublished":"2017-06-05T04:49:23+00:00","dateModified":"2024-12-04T17:28:44+00:00","mainEntityOfPage":{"@id":"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html"},"wordCount":881,"publisher":{"@id":"https:\/\/unilaw.vn\/en\/#organization"},"image":{"@id":"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html#primaryimage"},"thumbnailUrl":"https:\/\/i1.wp.com\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEjLa3A85UCDT93D9x4xn_h8O8pH7SKUdp41XN4hLeTajnt1SyYcNfM1SwlJBwuQHs1PSIKAyb1kWL8Czt9b7rM_E-8nivRG-XSN63OdKj5g-cwgA95ENJnmnKl7SC4H71ZaceGUIPPD3grVC3i9Q4gGP66RWatvFdtQpH_WXwN_lCcutgAcB96_GbPIRmA\/s1250\/Rocky-cliff-overlooking-ocean.jpg?w=1250&resize=1250,679&ssl=1","keywords":["Foreign Investment in Vietnam"],"articleSection":["Investment Law"],"inLanguage":"vi"},{"@type":"WebPage","@id":"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html","url":"https:\/\/unilaw.vn\/en\/judgment-analysis\/investment-law\/establishment-of-a-foreign-invested-company-in-vietnam.html","name":"FOREIGN INVESTMENT IN VIETNAM: UPDATED FOR 2024 - 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