1. Overview

Vietnam’s dynamic economy, investor-friendly policies, and strategic position in Asia have established it as a top choice for business setup. The government’s recent reforms have streamlined registration procedures, making it easier for foreign investors to tap into the growing Vietnamese market.

2. Surge in Foreign Capital for Business Registration in Vietnam

As of 2019, Vietnam had attracted more than 30,000 foreign direct investment (FDI) projects, amounting to approximately USD 362 billion. Although COVID-19 temporarily slowed growth, the economic resurgence in 2023 has spurred renewed investment interest, especially in Vietnam’s thriving private sector.

3. Influence of Free Trade Agreements on Business Registration Reforms

Vietnam’s engagement in global trade agreements has been a major catalyst for business registration reform. With diplomatic ties spanning nearly 190 countries and 15 free trade agreements (FTAs) with key economies, Vietnam is drawing significant interest from global investors looking to enter Southeast Asia.

4. Steps to Register a Business in Vietnam

Business registration in Vietnam requires two essential steps: obtaining an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC).

4.1 Securing an Investment Registration Certificate

For foreign investors, the first step to establishing a business in Vietnam is obtaining an IRC, which grants the legal authority to conduct business. This foundational certificate is essential to proceed with business setup in Vietnam.

4.2 Securing an Enterprise Registration Certificate

After obtaining the IRC, investors can move on to apply for the ERC. This process includes selecting a unique business name that does not duplicate or resemble any other registered business. The name must adhere to Vietnam’s national business registry requirements, excluding those of dissolved or bankrupt entities.

Investors, or their authorized representatives, need to submit a comprehensive application dossier to the Business Registration Office (BRO) of the location where the head office will be established. The BRO reviews the application within three business days, after which investors may collect the results in person or by mail.

5. Criteria for Obtaining an Enterprise Registration Certificate

To receive an Enterprise Registration Certificate, a business must meet five essential conditions:

  1. Permissible business activities: The company’s operations must not fall within prohibited sectors.
  2. Compliant business name: The chosen name must align with legal standards.
  3. Registered head office: A verified head office location is mandatory.
  4. Complete documentation: All application forms must comply with Vietnamese law.
  5. Registration fee payment: All registration fees must be paid as specified by law.

6. Factors Making Vietnam a Preferred Choice for Business Establishment

Vietnam’s reputation as a business-friendly destination continues to grow due to its stable political landscape, regulatory reforms, and efforts to simplify investment procedures. The Vietnamese government’s focus on streamlining the registration process makes it an increasingly attractive option for foreign businesses entering the Southeast Asian market.

 

The above information is provided by Mys Law. For any questions regarding the content of this article, please contact 0969.361.319 or email: [email protected] for further clarification. Best regards!

Compiler: Nguyen Anh Quan