FOREIGNERS ESTABLISHING A BUSINESS IN VIETNAM: CONDITIONS, PROCEDURES AND KEY CONSIDERATIONS IN 2026
In recent years, Vietnam has continued to be an attractive market for foreign investors seeking to expand their business operations. However, foreigners establishing a business in Vietnam does not simply involve completing enterprise registration procedures. Investors must also consider regulations on foreign investment, business lines, market access conditions, ownership ratios, and other applicable requirements.
As of March 1, 2026, Law on Investment No. 143/2025/QH15 has officially taken effect, establishing a new legal framework for investment activities in Vietnam. Therefore, foreign investors wishing to establish a company in Vietnam should carefully review the applicable regulations before proceeding with their investment plan.
Clients seeking assistance with the establishment of an wood FDI company in Vietnam (2026) may 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. Foreigners Establishing a business in Vietnam: Can foreigners establish a company in Vietnam?
Foreign investors may invest in and establish economic organizations in Vietnam in accordance with investment and enterprise laws.
Depending on the investor's nationality, proposed business lines, ownership ratio, and market access conditions, investors may choose an appropriate investment structure, such as:
- Establishing a company with 100% foreign-owned capital;
- Establishing a company with both Vietnamese and foreign investors;
- Contributing capital to, purchasing shares or capital contributions in, an existing Vietnamese company;
- Other forms of investment permitted under Vietnamese law.
In particular, not every business line is freely accessible to foreign investors. Before establishing a company, investors should determine whether their proposed business activities are subject to market access restrictions applicable to foreign investors.
This assessment is important because it may directly affect the ownership ratio, investment structure, and conditions that the foreign investor must satisfy.
II. 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. Foreigners Establishing a business in Vietnam: What conditions must foreigners satisfy when establishing a company in Vietnam?
Before preparing the application dossier, foreign investors should determine several fundamental matters.
Determine the business lines
Investors must clearly identify the business lines they intend to conduct in Vietnam.
For conditional or restricted business lines, investors must further review applicable specialized requirements, ownership restrictions, and permitted investment forms.
Determine the ownership ratio
Depending on the specific business line, foreign investors may be permitted to:
Own 100% of the company's charter capital;
Own a specific percentage of the charter capital as prescribed by law;
Or establish a joint venture with a Vietnamese investor.
Therefore, determining the ownership ratio from the beginning helps investors select an appropriate investment structure.
Determine the project location
Investors must have a suitable location for implementing the investment project and conducting business activities in Vietnam.
Depending on the nature of the business, the proposed location may also need to satisfy requirements relating to planning, land, construction, environmental protection, fire prevention and fighting, or other specialized regulations.
Determine the investment capital
Investors need to determine the proposed investment capital, contributed capital, and capital implementation plan in accordance with the scale of the project.
The registered investment capital should be carefully considered based on the actual business needs, the investor's ability to contribute capital, and requirements applicable to the specific business sector.
IV. Foreigners Establishing a business in Vietnam: What are the procedures for foreigners establishing a company in Vietnam?
For foreign investors establishing a company in Vietnam, the procedures should be considered in accordance with both investment regulations and enterprise regulations.
Generally, the process may include the following steps:
Step 1: Check market access conditions
First, investors should determine:
- Proposed business lines;
- Investor's nationality;
- Proposed ownership ratio;
- Investment form;
- Project location;
- Applicable specialized conditions, if any.
This is an important step in determining the appropriate investment structure.
Step 2: Prepare the investment application dossier
Depending on the specific case, investors must prepare documents relating to the investor and the investment project.
For a foreign individual investor, the dossier generally includes identification documents and documents relating to the proposed investment project as required by the competent authority.
For a foreign institutional investor, additional documents relating to the legal status of the organization and documents demonstrating the investor's capacity may be required.
Step 3: Carry out investment registration procedures
Where applicable, the foreign investor must carry out the relevant procedures to obtain an Investment Registration Certificate (IRC).
After completing the investment registration procedures, the investor may proceed with establishing an economic organization in accordance with Vietnamese enterprise law.
Step 4: Register the establishment of the company
The investor submits the enterprise registration dossier to obtain an Enterprise Registration Certificate (ERC).
After receiving the ERC, the company obtains its legal status to organize and conduct business activities in accordance with applicable regulations.
Step 5: Complete post-establishment procedures
After establishment, the company may need to carry out additional procedures, including:
- Making and managing the company seal;
- Opening a bank account;
- Completing tax registration and tax obligations;
- Contributing investment capital in accordance with regulations;
- Carrying out labor-related procedures if employing workers;
- Obtaining sub-licenses for conditional business lines;
- Complying with investment reporting obligations.
V. Foreigners Establishing a business in Vietnam: What should foreigners pay attention to when establishing a company in Vietnam?
One common mistake is choosing the business lines and ownership ratio before checking the market access conditions applicable to foreign investors.
To minimize potential risks, investors should pay attention to the following:
First, check the business lines before establishing the company.
Investors should not rely solely on whether a business line is permitted for Vietnamese companies, because foreign investors may be subject to additional market access conditions.
Second, determine the appropriate ownership ratio.
The choice between a 100% foreign-owned company and a joint venture should be based on the proposed business activities and the regulations applicable to foreign investors.
Third, prepare complete documents relating to the foreign investor.
Documents issued by foreign authorities may need to be consularly legalized, translated, and certified in accordance with Vietnamese regulations before being used in Vietnam.
Fourth, pay attention to the investment project location.
The proposed location for the company's headquarters or implementation of the investment project should be reviewed for its suitability for the intended business activities.
Fifth, determine capital contribution and investment reporting obligations.
After obtaining the relevant approvals and registrations, investors must contribute capital in accordance with applicable regulations and comply with investment reporting and other regulatory obligations during the company's operation.
Clients seeking assistance with the establishment of an wood FDI company in Vietnam (2026) may 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
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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