Difficulties in establishing a foreign-invested company in Vietnam

Difficulties in establishing a foreign-invested company in Vietnam

Firstly, the field of business investment

Based on the scope of market opening commitments in Vietnam and Vietnam's investment law, it may be difficult for foreign investors to register industries that have not yet opened the market or investment restricted industries.

Secondly, conditions for investors

Foreign investors investing in Vietnam can be individuals (also known as entrepreneurs) or foreign companies. Most of the normal investment and business lines that have been fully opened by Vietnam are regulated to allow investors to be individuals or to set up foreign-owned companies in Vietnam, that is, there are no restrictions on investor status as an individual or a company. However, there are still a number of business lines with special conditions that have specific investment requirements on whether the investment status must be an individual or a company, which can be determined through a combination of investment conditions for all sectors/industries registered for investment on the basis of the scope of the commitment of Vietnam to market opening and the provisions of Vietnamese law (if any).

Thirdly, the source of investment capital to establish a foreign company in Vietnam

Currently, Vietnam's market-opening commitments and Vietnamese law only stipulate the investment limit conditions of projects to establish foreign-invested companies in certain fields such as education, business real estate, travel, payment intermediaries...The rest of the other normal business lines do not have regulations on investment limits; accordingly, investors will need to ensure the feasibility of the amount of investment capital commensurate with the scope and scale of the project.

Fourthly, the procedure for establishing a foreign-invested company

During the process of carrying out the procedures for establishing a foreign-invested company, the enterprise must declare a series of documents related to the declaration and verification of capital sources from the foreign-investing unit. These documents all fall under the standards specified in  Law on Investment, which requires foreign-invested enterprises that want to establish a company to strictly enforce them.