Everything foreign investor should know before forming a company in Vietnam

Foreign investors can either forming a company in Vietnam for the first time or signing a Business Cooperation Contract with a local partner. In both cases, the investors need to obtain an investment certificate.

The application process depends on the location of the registered office of the company or Business Cooperation Contract (inside or outside special zone).

Company formation

Foreign investors can form foreign invested companies in Vietnam under the form of: Limited liability (LLC), or Joint Stock (JSC) companies. They can be either 100% foreign owned or joint venture with local partners.

Related: Steps for Incorporation of a company in Vietnam

The incorporation process is the same for all forms of companies. However, it may vary depending on the following factors:

  • Location (inside or outside special zone).
  • Whether the investor will rent a simple office or lease land and request a construction permit.
  • Special requirements (e.g. a feasibility study) apply to projects above VND300 billions (about USD14 million).

With simple office lease in Ho Chi Minh City

  • Outside special zones
  • In Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA)
  • In Management Authority for Southern Area Development (MASD)
  • In Saigon Hi-Tech Park (SHTP)
  • In Investment & Construction Authority for Thu Thiem urbanized area (Thu Thiem ICA)
  • In North West Metropolitan Area Authority (NWMA)

With Land Lease

  • Outside special zones
  • In HCMC Export Processing and Industrial Zones Authority (HEPZA)
  • In Management Authority For Southern Area Development (MASD)
  • In Saigon Hi-Tech Park (SHTP)
  • In Investment & Construction Authority for Thu Thiem urbanized area (Thu Thiem ICA)
  • In North-West Metropolitan Area Authority (NWMA)

Business Cooperation Contract

Foreign investors can invest in Vietnam without forming a company. They can sign with a Vietnamese company or individual a business cooperation contract (BCC), in which parties jointly undertake business activities and share the resulting profits. The Vietnamese company can be owned by nationals, by foreigners or be a joint-venture.

Outside special zones

  • In HCMC Export Processing and Industrial Zones Authority (HEPZA)
  • In Management Authority for Southern Area Development (MASD)
  • In Saigon Hi-Tech Park (SHTP)
  • In North West Metropolitan Area Authority (NWMA)

To be advised in detail, you may contact the incorporation agency in Vietnam, such as GBS at: info@gbs.com.vn, hotline, Whatsap at: +84903189033 or visit the website: https://gbs.com.vn

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