ESTABLISHMENT OF A FOREIGN-INVESTED ENTERPRISE IN VIETNAM: ESTABLISHING A FOREIGN-INVESTED CONSTRUCTION COMPANY IN VIETNAM
The rapid development of infrastructure, industrial zones, mega urban areas, and commercial real estate in Vietnam continues to attract massive capital inflows from foreign construction corporations and international contractors. The booming market creates lucrative opportunities for foreign investors (from Japan, South Korea, China, Singapore, Europe, the US, etc.) seeking to establish a permanent corporate presence in Vietnam.
However, Construction is classified as a strictly regulated, conditional business sector under Vietnamese law. To legally operate a foreign-invested construction company, investors must navigate a dual-layer licensing framework: obtaining foreign investment approval and business registration, followed by securing specialized industry licenses, including Construction Capability Certificates and project-specific Building Permits.
In this article, Dai Quang Minh Consulting provides a comprehensive analysis of market access conditions, specialized legal requirements, and the procedure for establishing a foreign-invested construction company in Vietnam under Vietnamese law.
Prospective investors seeking assistance with establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Company provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat:(+84) 337926405 (ID: _pouniverse)/(+84) 869672216 (ID:DQM_Verna)
- Telegram: (+84) 337926405/ (+84)869672216
- Establishment of a Foreign-Invested Enterprise in Vietnam: Market access conditions
According to Vietnam's Schedule of Specific Commitments in Services under the World Trade Organization (WTO) for Construction and Related Engineering Services (CPC 511 - 518), Market Access conditions are stipulated across four modes of supply as follows:
- Commercial presence:
+ Legal Entity Requirement: The foreign service provider must be a legal person of a WTO Member state.
+ Investment Forms: Foreign investors may establish 100% foreign-owned enterprises (FOEs), joint ventures, or branch offices (branching has been permitted since 3 years after Vietnam's WTO accession).
+ Transitional Market Scope (Historical Context): During the first 2 years post-WTO accession, 100% FOEs were restricted to providing services only to foreign-invested enterprises and foreign-funded projects in Vietnam. Note: Since this transitional period has expired, 100% foreign-owned construction companies are now fully permitted to serve domestic clients, private projects, and state-funded developments across Vietnam.
- Presence of natural persons
+ Unbound, except as indicated in the Horizontal Commitments (permitting intra-corporate transferees including managers, executives, and technical specialists).
- I Establishment of a Foreign-Invested Enterprise in Vietnam: Conditions for Sub-Licenses in the Construction Sector
To legally execute construction work, architectural design, or project management, a foreign-invested enterprise must obtain a Certificate of Construction Eligibility (Construction Capability Certificate) issued by competent construction authorities:
- Professional Personnel Requirements:
+ Key positions such as chief site managers, architects, design engineers, and supervision engineers must hold valid Individual Construction Practicing Certificates matching the registered scope and capacity rank (Class I, Class II, or Class III).
+ Key personnel must sign lawful labor contracts with the company.
- Project Experience Requirements (For Class I and Class II Certificates):
+ The company must demonstrate prior experience by submitting executed contracts and official project acceptance/handover records for projects of equivalent scale and classification.
- Construction Equipment & Machinery:
+ The enterprise must demonstrate the capability to mobilize adequate construction machinery and equipment ensuring site safety and project schedules.
Why choose Dai Quang Minh Company
With years of practical experience in legal consulting, Dai Quang Minh Company is a pioneer in corporate support services, specializing in fast and affordable company formation. Below are the reasons to choose business registration services at Dai Quang Minh Company:
Human Resources: Gather a team of corporate legal experts and project legal experts with a long working history at domestic private economic groups; large foreign-invested enterprises operating in Vietnam.
Consulting Policy: Clients are gifted a completely free legal consulting package when using services at Dai Quang Minh Company.
Professionalism and Experience: Dai Quang Minh Company has a workforce with in-depth knowledge of business formation, ensuring a swift and accurate consulting process.
Time-Saving: Using Dai Quang Minh Company 's services helps you save precious time as we handle the entire process and related procedures.
Legal Insight: Dai Quang Minh Company ensures that all relevant legal regulations are strictly followed in accordance with the law.
Customization: Our consulting services are highly adaptable to your specific needs, allowing you to choose options suitable for your business.
Trusted Partner: Dai Quang Minh Company has built a reputation for providing affordable business setup consulting to many enterprises and individuals nationwide.
Confidentiality Assurance: Dai Quang Minh Company is committed to the absolute protection of your personal and business information.
Detailed Support: Dai Quang Minh Company provides detailed advice and support regarding the process and requirements to help you better understand business formation.
Process Optimization: Our consulting helps optimize the business setup process, minimizing potential risks and difficulties.
Excellent Customer Experience: Dai Quang Minh Company is dedicated to providing the best customer experience through professional advice and enthusiastic support.
Focus on Business Plans: By utilizing our registration services, you can focus on developing your business plans and core activities instead of worrying about legal procedures.
III. Establishment of a Foreign-Invested Enterprise in Vietnam: Procedure for Establishing a Foreign-Invested Construction Company
- Step 1: Apply for the Investment Registration Certificate (IRC): Foreign investors forming a new enterprise must execute investment project registration procedures to obtain an Investment Registration Certificate (IRC).
- Step 2: Apply for the Enterprise Registration Certificate (ERC): Upon receiving the IRC, the investor submits an enterprise registration dossier to the Department of Finance to obtain the Enterprise Registration Certificate (ERC).
- Step 3: Obtain the Certificate of Construction Eligibility (Sub-License).
- Step 4: Obtain Building Permits (Per Specific Project): When acting as an investor or main contractor for a specific construction project, the company applies for project-specific Building Permits at the relevant provincial/district People's Committee or Industrial Zone Management Board.
Prospective investors seeking assistance with establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Company provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
During the course of operations, should you have any questions or require any assistance, please contact Dai Quang Minh Company. We are always ready to provide support and accompany you throughout the process of construction, operation, and development.
We wish you sustainable development and breakthrough success.
Sincerely thank you./.
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