FOREIGN DIRECT INVESTMENT COMPANY (FDI COMPANY) ESTABLISHMENT SERVICES IN VIETNAM 2026: CAN A REPRESENTATIVE OFFICE OF A FOREIGN TRADER CONDUCT TRADE PROMOTION ACTIVITIES IN VIETNAM?
A Representative Office (RO) is one of the most common forms of commercial presence for foreign traders entering the Vietnamese market. However, many foreign businesses mistakenly assume that a Representative Office has the same functions as a branch or a foreign-invested enterprise, particularly regarding trade promotion and commercial activities.
Can a Representative Office legally conduct trade promotion activities in Vietnam? If so, what activities are permitted and what limitations apply? This article analyzes the relevant legal framework to help foreign traders clearly understand the scope of operation of a Representative Office in Vietnam.
Prospective clients seeking assistance with procedures for establishing a foreign-invested company in Vietnam 2026 are kindly invited to contact Dai Quang Minh Company 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\
I. Legal Framework
The operation of Representative Offices of foreign traders is primarily governed by the following legislation:
- Commercial Law 2005;
- Other relevant regulations concerning investment, taxation, labor, advertising, and trade promotion.
Under these regulations, a Representative Office is not an independent legal entity conducting commercial business. Instead, it serves as a dependent unit established by a foreign trader to perform limited functions in Vietnam. Its principal role is to represent and support the business interests of the parent company rather than to generate revenue.
II. Is a Representative Office Allowed to Conduct Trade Promotion Activities?
Vietnamese law expressly permits a Representative Office to conduct trade promotion activities on behalf of the foreign trader.
Trade promotion generally refers to activities intended to:
- Introduce products and services;
- Build and strengthen brand recognition;
- Expand commercial relationships;
- Identify potential customers and distributors;
- Collect market information;
- Create business opportunities for the parent company.
The underlying purpose is to facilitate future commercial transactions rather than to conduct the transactions themselves.
Accordingly, a Representative Office may actively support the commercial development of the foreign trader in Vietnam, provided that its activities remain non-profit-making and do not constitute direct business operations.
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III. Scope of Permitted Trade Promotion Activities
Conducting Market Research
One of the most important functions of a Representative Office is conducting comprehensive market research. This includes:
- Studying consumer demand;
- Analyzing competitors;
- Monitoring industry developments;
- Evaluating market trends;
- Assessing regulatory changes;
- Identifying investment opportunities.
The Representative Office may collect statistical data, communicate with local authorities, conduct customer surveys, and prepare market reports for the parent company.
These activities enable foreign traders to better understand the Vietnamese market before making strategic business decisions.
Promoting the Parent Company's Brand
A Representative Office may introduce and promote the foreign trader's:
- Corporate identity;
- Trademarks;
- Products;
- Technologies;
- Investment capabilities.
Developing Business Relationships
Representative Offices frequently serve as communication hubs between the parent company and Vietnamese business partners. They may:
- Identify potential distributors;
- Search for suppliers;
- Introduce strategic partners;
- Arrange business meetings;
- Facilitate negotiations;
- Maintain relationships with existing customers.
In practice, many foreign companies rely on their Representative Offices to coordinate communications before signing commercial agreements through the parent company.
This significantly reduces communication barriers and strengthens long-term business cooperation.
IV. Activities That Are Strictly Prohibited
The fact that a Representative Office may conduct trade promotion does not mean that it may conduct business.
Vietnamese law prohibits a Representative Office from carrying out profit-generating commercial activities, including:
- Buying or selling goods;
- Providing services for remuneration;
- Issuing VAT invoices;
- Receiving payments from customers;
- Generating income in Vietnam;
- Importing or exporting goods for commercial purposes;
- Carrying out manufacturing activities;
- Operating retail or wholesale businesses.
Likewise, a Representative Office may not independently sign commercial contracts that create business obligations for itself.
Although the Chief Representative may sign certain documents under a valid authorization from the foreign trader, the contracting party remains the foreign trader rather than the Representative Office itself.
This distinction is fundamental because the Representative Office exists solely to support - not replace - the parent company's commercial operations.
V. Conclusion
A Representative Office of a foreign trader may legally conduct trade promotion activities in Vietnam, including market research, brand promotion, customer liaison, participation in trade fairs, business networking, and support for the parent company's commercial operations. These activities enable foreign businesses to build market presence and establish valuable business relationships before making long-term investment decisions.
However, the Representative Office remains a non-commercial representative unit. It is prohibited from engaging in profit-making business activities such as selling goods, providing services for remuneration, issuing invoices, or generating revenue in Vietnam.
Accordingly, foreign traders should carefully evaluate their commercial objectives before selecting the appropriate form of establishment. Where the primary objective is market exploration and business development, a Representative Office provides an efficient and cost-effective solution. Conversely, where direct commercial operations are intended, establishing a Branch or a Foreign-Invested Enterprise will generally be the more appropriate legal structure under Vietnamese law.
Prospective clients seeking assistance with procedures for establishing a foreign-invested company in Vietnam 2026 are kindly invited to contact Dai Quang Minh Company 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
We sincerely thank you./.
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