Are you planning to establish an advertising company in Vietnam but unsure whether foreign investors are allowed full ownership or what legal procedures apply? Vietnam’s advertising industry is expanding rapidly—but it remains a conditional sector for foreign investors. This comprehensive guide (updated to 2025) explains the legal framework, required investment procedures, and strategic solutions to help foreign investors enter the Vietnamese advertising market safely and effectively.
Before starting a business in advertising, foreign investors must understand the regulatory barriers, ownership restrictions, and documentation requirements imposed by Vietnam’s investment and advertising laws. These requirements determine whether your application is approved or rejected.
Under Vietnam’s WTO Commitments, advertising services fall under CPC 871, categorized as a conditional business line. This means Vietnam allows foreign participation, but not without special restrictions.
Most importantly:
Foreign investors are NOT permitted to establish a 100% foreign-owned advertising company.
They must cooperate with a Vietnamese entity through a joint venture or a Business Cooperation Contract (BCC).
This limitation aims to ensure cultural consistency, protect national communication channels, and maintain compliance with Vietnam’s Advertising Law.
While 100% foreign ownership is prohibited, Vietnam has removed fixed caps on the maximum percentage of foreign contributions. Therefore:
A foreign investor can hold a majority stake—up to 99.99%,
As long as at least one Vietnamese shareholder remains.
This structure allows the foreign investor to maintain managerial control while still meeting regulatory conditions. However, the Vietnamese partner must be carefully selected, as they will participate in key corporate governance decisions and can affect the company’s legal standing.
To operate legally in advertising activities, a foreign-invested enterprise must:
Register business lines corresponding to VISC Code 7310 (Advertising Services).
Comply with prohibitions and restrictions under Vietnam’s Advertising Law.
Provide legalized foreign documents (if the investor is an overseas entity).
Maintain Vietnamese-language contracts and documents where required by law.
Failure to satisfy any of these conditions may result in delayed approvals or outright rejection.
Establishing a foreign-invested advertising company involves more steps than forming a regular domestic enterprise. The process typically includes obtaining investment approval, establishing the joint venture structure, and registering advertising activities.
The IRC is mandatory for all foreign-invested projects. The application requires:
A detailed investment proposal
Description of advertising services to be provided
Proof of financial capacity
Legal documents of foreign investors (passport or corporate charter)
Office lease agreement or proof of intended business location
All foreign documents must be notarized, consular legalized, and translated into Vietnamese.
Processing time typically ranges from 15–20 working days, though complex advertising projects may require further explanation or revision.
Because 100% foreign ownership is not allowed, foreign investors must choose between:
Both the foreign investor and the Vietnamese partner contribute capital.
A new legal entity is formed.
Voting power and management rights depend on capital ratio and internal bylaws.
This is the most common model for advertising services.
No new legal entity is created.
The Vietnamese partner remains the legal representative.
Foreign investors share profits, risks, and obligations through a contractual framework.
Suitable for investors who prefer flexibility or who are testing the Vietnamese market.
Choosing the right structure depends on your long-term business strategy, desired level of control, and financial commitments.
After IRC approval, the investor proceeds with:
ERC / Business Registration Certificate issuance
Carving and registering the company seal
Publishing the business registration information
Opening capital and operating bank accounts
Registering initial tax declarations
Signing labor contracts and registering employees
Only after completing these steps can the joint venture legally begin operations.
To conduct advertising activities, the company must ensure:
Registration of VISC 7310 (Corresponding to CPC 871)
Compliance with sector-specific rules:
Content must not violate Vietnamese cultural, ethical, or political standards
Some products/services cannot be advertised (tobacco, strong liquor…)
Certain advertising forms require prior approval from authorities
Foreign investors often underestimate compliance in this phase, leading to penalties or suspended operations.
Setting up an advertising company in Vietnam is not only about submitting documents—it requires strategic planning, compliance awareness, and long-term operational foresight.
Foreign investors frequently encounter:
Rejection of licensing applications due to misunderstanding ownership restrictions
Unreliable Vietnamese partners, leading to internal disputes
Improper business line registration, resulting in illegal operations
Slow or incomplete legalization of foreign documents
Non-compliance with advertising content regulations, exposing the company to significant fines
Many investors only discover these issues after investing considerable time and money.
DEDICA Law accompanies clients throughout the entire lifecycle of investment. Our services include:
Conducting due diligence on potential Vietnamese partners
Structuring capital contributions to maximize foreign investor control
Drafting Joint Venture Contracts and BCC agreements that protect foreign investor interests
Preparing and submitting IRC & ERC applications
Registering compliant business lines and advising on advertising activities
Providing ongoing legal support for corporate governance, tax compliance, and labor matters
Our team includes lawyers with extensive experience in international firms and multinational corporations, giving us a strong advantage in handling foreign-invested projects with professionalism and efficiency.
Deep knowledge of foreign investment regulations
Practical understanding of Vietnam’s advertising market
Transparent communication and predictable legal fees
Strong capability in negotiating with Vietnamese partners
Strategic, business-oriented legal advice—not just paperwork support
By working with DEDICA Law, foreign investors ensure their advertising company is built on a strong, lawful, and sustainable foundation.
Vietnam offers tremendous opportunities for foreign investors in the advertising industry, driven by rapid digital transformation, expanding consumer markets, and increasing demand for creative marketing solutions.
However, because advertising is a conditional sector, foreign investors must carefully follow the investment procedures, choose the right partnership model, and comply with Vietnam’s Advertising Law. A strategic legal advisor can make the difference between a successful market entry and a costly mistake.
Are you planning to establish an advertising company in Vietnam?
Let DEDICA Law support you with a complete, reliable, and legally compliant setup process tailored to foreign investors.
📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)
🕒 Working Hours: Monday – Friday (8:30 – 18:00)
Contact us today for a free initial consultation with our experienced lawyers!
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