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Establishing an FDI company in Vietnam requires foreign investors to comply with applicable regulations on market access, investment registration, and enterprise establishment. Understanding these legal requirements and procedures is essential to ensuring a smooth and compliant investment process
Establishing a foreign-invested company in Vietnam is one of the common forms of investment chosen by foreign investors under Clause 1, Article 18 of the 2025 Law on Investment. To facilitate market entry, current legislation has introduced greater flexibility in the procedures for establishing an economic organization. Specifically, compared with the 2020 Law on Investment, Clause 2, Article 19 of the 2025 Law on Investment allows foreign investors to establish an economic organization before applying for an Investment Registration Certificate (IRC), provided that they satisfy the applicable market access conditions. Accordingly, investors may choose one of two sequences: establish the economic organization first and then apply for the IRC; or apply for the IRC first and establish the economic organization afterward. This change increases flexibility in the investment process, enables investors to choose the sequence that best suits their practical needs, and aims to shorten the time required to enter the Vietnamese market.
Two types of documents commonly referred to in this process should be distinguished. The Enterprise Registration Certificate (ERC) records the enterprise’s registration information in accordance with enterprise law, while the Investment Registration Certificate (IRC) records information about an investment project for which an IRC is required. Holding an ERC does not mean that the enterprise has satisfied all conditions for implementing an investment project or conducting a conditional business line. Similarly, an IRC does not replace an ERC where the investor chooses to establish a company.
Therefore, before choosing the applicable procedure, investors should identify their business lines, the nationality of the investor, the proposed ownership ratio, the project location, and any relevant sector-specific procedures.
This is the first matter to examine when determining whether a foreign investor can establish an enterprise. If the proposed business line falls within a sector restricted from market access, the investor may not be permitted to establish an enterprise in Vietnam. For conditional business lines, the investor must satisfy all applicable conditions before applying for an ERC.
Under Clause 2, Article 8 of the 2025 Law on Investment, Articles 15 and 16 and Appendix I to Decree No. 96/2026/ND-CP, foreign investors should compare their proposed investment business lines against the List of Business Lines Restricted from Market Access for Foreign Investors and the corresponding applicable conditions. Under Clause 3, Article 8 of the 2025 Law on Investment, market access conditions may vary depending on the relevant business line and applicable international commitments, and may include:
“(a) The percentage of charter capital that foreign investors may own in an economic organization;
(b) Forms of investment;
(c) Scope of investment activities;
(d) Capacity of the investor and of the partners participating in the investment activity;
(d) Other conditions prescribed by laws, resolutions of the National Assembly, ordinances and resolutions of the Standing Committee of the National Assembly, decrees of the Government, and international treaties to which the Socialist Republic of Vietnam is a party.”
Not all business lines are subject to the same foreign ownership limits. Therefore, it should not be assumed that foreign investors are always permitted to own 100% of the capital or must always enter into a joint venture with Vietnamese investors. The permitted ownership ratio must be determined based on the specific business line and the corresponding market access conditions.
In addition to the conditions mentioned above, investors must also satisfy certain relevant conditions under Clause 3, Article 15 of Decree No. 96/2026/ND-CP, such as conditions relating to land use and labor; natural resources and minerals; and the production or supply of public goods and services or goods and services subject to a state monopoly, among others.
Investors should clearly identify their business objectives, the business lines to be registered, and the capital contribution of each member or shareholder.
If a business line is included in the list of sectors restricted from market access, the enterprise must satisfy the corresponding conditions before carrying out investment activities. If the enterprise operates in a conditional business line, it must also satisfy applicable requirements relating to licenses, certificates, personnel, facilities, or other sector-specific conditions.
For an enterprise with multiple foreign investors, the aggregate foreign ownership ratio, ownership structure, and regulations applicable to the proposed business lines should be considered. The choice between a limited liability company and a joint-stock company should also reflect the number of investors, the intended governance structure, and capital-raising needs.
Investors should prepare an investment plan that is appropriate to the project’s objectives, scale, location, implementation schedule, and capital requirements.
Depending on the circumstances, the investment application may need to include documents evidencing financial capacity, such as financial statements, financial support commitments, guarantees from financial institutions, or other documents required by applicable regulations. The project location should also be assessed in terms of its legality, the right to use the location, and its suitability for the project’s objectives.
There is no single minimum capital requirement applicable to all foreign-invested enterprises. However, certain business lines may be subject to statutory capital, minimum capital, escrow deposit, or other specific financial requirements. Investors should therefore determine the appropriate capital amount based on actual needs and the legal requirements applicable to the relevant business line, rather than choosing an arbitrary figure for registration.
In addition to the above conditions, investors should check whether the project is subject to in-principle investment policy approval and whether it is subject to specific requirements concerning land, construction, environmental protection, fire prevention and firefighting, or sector-specific licenses.
Step 1: Check Market Access Conditions and Prepare the Enterprise Registration Application
Investors should determine the type of enterprise, business lines, charter capital, membership or shareholder structure, legal representative, and head-office address.
Under Clauses 1 and 3, Article 72 of Decree No. 96/2026/ND-CP, foreign investors may establish an economic organization under enterprise law before applying for an IRC. In this case, the application for enterprise registration must include a commitment to satisfy the market access conditions applicable to foreign investors, as required by law.
Enterprise establishment dossiers are governed by Decree No. 168/2025/ND-CP, as amended and supplemented by Decree No. 196/2026/ND-CP. Specifically, Clause 6, Article 24 of the Decree provides: “Where a foreign investor establishes an enterprise before carrying out procedures for the issuance or adjustment of an Investment Registration Certificate in accordance with investment law, the enterprise registration dossier does not need to include a copy of the Investment Registration Certificate referred to in Clause 5, Article 20, Point c, Clause 4, Article 21, and Point c, Clause 4, Article 22 of the Law on Enterprises. In this case, the application for enterprise registration must include a commitment to satisfy the market access conditions applicable to foreign investors in accordance with law.”
Accordingly, the enterprise registration forms under Circular No. 121/2026/TT-BTC are accompanied by a commitment form confirming compliance with market access conditions applicable to foreign investors. The person preparing the application only needs to add this commitment to the other documents required under Article 24 of the Decree to establish a foreign-invested company in Vietnam.
Step 2: Complete Enterprise Registration and Obtain the ERC
Investors submit a complete enterprise registration application through the National Business Registration Portal. The competent authority will process the application and issue the ERC within three working days from the date of receipt of a valid application.
Issuance of the ERC establishes the enterprise’s legal status under enterprise law, but does not mean that investment procedures for the proposed project have been completed.
Step 3: Apply for the IRC
Under Clause 4, Article 72 of Decree No. 96/2026/ND-CP, an economic organization established through this sequence must complete the procedures to obtain an IRC for the investment project within 12 months from the date of establishment. The enterprise may implement the investment project only after completing the IRC issuance procedures. Any addition of other investment business lines to the enterprise registration details must also comply with the limits set out in this clause.
The specific dossier and procedure depend on the project, its location, the relevant investment business lines, and whether the project is subject to in-principle investment policy approval. If the project is subject to such approval, the application is prepared in accordance with Article 38; for an ordinary project that does not require in-principle approval, the procedure is governed by Article 39 of Decree No. 96/2026/ND-CP.
In summary, the ERC-first, IRC-later sequence should not be understood to mean that the enterprise may begin implementing its project immediately after obtaining the ERC. Investors must plan to complete the investment procedures within the statutory time limit before commencing the project.
Step 1: Prepare the Application for the IRC
If the project is subject to in-principle investment policy approval, the investor must follow the applicable authority and procedures prescribed by the 2025 Law on Investment No. 143/2025/QH15 and relevant implementing regulations. Not every investment project undertaken by a foreign investor requires this step. Whether such approval is required depends on the statutory criteria applicable to each type of project.
For a project that does not require in-principle investment policy approval, the investor prepares an application under Clause 1, Article 32 and Article 39 of Decree No. 96/2026/ND-CP. The application includes, among other documents, a written request to implement the investment project and an investment project proposal, together with other documents depending on the specific business line and investment form.
The competent authority reviews the application in accordance with the procedure applicable to the project. The processing time and required documents must be determined based on the specific project type and procedure; a single timeline should not be applied to all cases.
Step 2: Complete Enterprise Registration and Obtain the ERC
After the IRC has been issued, the investor proceeds to establish the enterprise in accordance with enterprise law. The application must consistently reflect information relating to the investor, ownership structure, business lines, charter capital, and other registration particulars.
Under Clause 2, Article 72 of Decree No. 96/2026/ND-CP, where the IRC is issued before the economic organization is established, the economic organization established by the foreign investor becomes the investor implementing the investment project in accordance with the IRC from the date on which the ERC or an equivalent legally valid document is issued.
After obtaining the necessary documents, the enterprise must fulfill its tax and accounting obligations, arrange a bank account, make capital contributions as committed, and obtain sector-specific business licenses where required. Depending on the project and applicable regulations, the enterprise may also be required to submit investment reports and comply with other sector-specific regulatory obligations.
With a team of experienced lawyers and legal experts in investment registration and mergers and acquisitions (M&A), BKC LAW provides comprehensive solutions for foreign investors. For in-depth advice on the most suitable investment structure for your project, please contact BKC LAW using the details below:
Phone: 0909 073 692
Email: info@bkclaw.vn
District 1 Office: 9th Floor, Diamond Plaza Building, 34 Le Duan Street, Sai Gon Ward, Ho Chi Minh City
Binh Tan Office: 41 Ten Lua Street, An Lac Ward, Ho Chi Minh City
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41 Ten Lua Street, An Lac Ward, Ho Chi Minh City
info@bkclaw.vn
0909 073 692
9th Floor, Diamond Plaza 34 Le Duan Street, Saigon Ward, Ho Chi Minh City
info@bkclaw.vn
0909 073 692