Establishing a Foreign Investment (FDI) Company in Vietnam

Why should you establish an FDI company in Vietnam?

Vietnam is one of the most attractive destinations for foreign investors thanks to its stable economic growth, young population, competitive labor costs and free trade agreements (FTAs) that open up opportunities to access many large markets. Establishforeign investment (FDI) companyHelp investors:

• Establish an official legal presence in Vietnam.
• Sign contracts, hire personnel and implement legal business activities.
• Enjoy tax incentives and investment incentives according to encouraged industries or areas.

However, procedures for establishing FDI companies in Vietnam are often complicated, requiring understanding of investment law, enterprise law and specialized regulations.

Process of establishing an FDI company in Vietnam

DEDICA supports customers in implementing the entire process of establishing a foreign-invested company, including:

Step 1: Apply for Investment Registration Certificate (IRC)

• Consulting on industries and capital contribution ratios in accordance with legal regulations.
• Drafting investment registration documents according to the Investment Law 2020.
• Representing customers to submit applications and work with the Department of Planning and Investment.

Step 2: Apply for Enterprise Registration Certificate (ERC)

• Drafting company establishment documents (charter, list of members/shareholders).
• Register for a business code.
• Engrave seal and announce business registration information.

Step 3: Post-establishment procedures

• Register for taxes, open a direct investment capital account (DICA).
• Contribute capital on time according to regulations.
• Register labor, insurance, apply for a work permit for foreigners (if necessary).

Popular types of FDI companies

• One member LLC: 100% owned by a foreign investor.
• LLC with two or more members: from 2 to 50 investors contribute capital.
• Joint stock company: suitable for projects that need to mobilize large-scale capital.
• Joint venture with Vietnamese partners: combines the strengths of domestic and foreign investors.

Process of Establishing a Foreign Investment (FDI) Company in Vietnam

Step 1. Receive information & investment requests

In the first step,DEDICAReceive and record all information from customers, including:

• Expected investment industry and scope of operations in Vietnam;
• Capital contribution ratio, member/shareholder structure;
• Location of headquarters, factory or representative office;
• Related documents (investor's passport, parent company's business license, location lease contract, etc.);
• Long-term investment goals and plans.

DEDICA at the same timePreliminary discussion about the ability to meet legal conditions, conditional occupation requirements (if any), and steps to prepare before submitting the application.

Step 2. Preliminary consultation & Legal service quote

After receiving the information, the teamLawyers and investment specialists of DEDICAwill proceed:

• Analyze the feasibility of investment projects, determine the legal basis;
• Assess legal risks, especially for conditional business lines, requiring legal capital, or additional licenses;
• Develop a specific procedural roadmap
• Full service quote

Customers will receive itService proposals and transparent fee quotes, only proceed when all content is agreed.

Step 3. Prepare & Submit documents to the competent authority

(a) Prepare documents

After signing the service confirmation,DEDICAproceed:

• Draft complete investment registration documents and business establishment
• Coordinate closely with customersto prepare the necessary documents.
• Check carefullyvalidity and consistency between documents, to avoid the risk of being asked to amend or supplement.

(b) Submit application and monitor progress

DEDICA represents customers:

• Submit documents to the competent authority
• Monitor the application processing process, respond and explain promptly if there are additional requests from state agencies;
• Update processing progress for customers in each stage.

Step 4. Hand over results

After getting the results, DEDICA will:

• Hand over all original documents and electronic copiesfor customers (IRC, ERC, charter, seal, tax registration documents...);

Benefits of choosing DEDICA as a partner

• Investment strategy consulting: choose the optimal industry, location, and capital structure.
• Full support: from the stage of applying for an investment license, establishing a business to post-establishment procedures.
• Save time: Minimize document processing time and limit errors.
• Long-term companion: providing regular legal services, tax, labor, and contract consulting for FDI enterprises to operate stably.