How Can Foreign Investors Quickly and Smoothly Set Up a Fashion Design Company in Vietnam
The fashion design industry in Vietnam is booming, offering a fertile ground that attracts international investors. Yet many still believe that opening a fashion design company with foreign capital is a daunting task due to cumbersome procedures and stringent requirements. The reality is much simpler than you think—provided you understand the process well and receive proper legal advice.
Conditions for Foreign Investors to Establish a Fashion Design Company in Vietnam
Investment in the fashion design sector is not restricted under Vietnam’s WTO commitments. This means that investors can fully establish a 100% foreign-owned enterprise or form a joint venture, depending on their business objectives.
Required Legal Documentation
The first step is to prepare an investment dossier including: the investor’s passport or corporate documents; an investment proposal; lease agreement for the office; proof of financial capacity; and a plan of business activities. For projects that do not require pre-approval, a foreign investor only needs to apply for an Investment Registration Certificate (IRC), followed by an Enterprise Registration Certificate (ERC).
Corporate Headquarters Location and Registered Business Activities
Remember, your company must have a clear and legal address—not located in residential apartments or buildings not intended for commercial use. Your primary business line should be “Fashion Design,” and you may also register additional related activities, such as garment manufacturing, retail operations, or e-commerce.
Investment Capital and Proving Financial Capacity
Vietnam does not mandate a minimum capital threshold for establishing a fashion design company. However, the registered capital should realistically reflect the project’s scale and usage plan. Investment can be contributed in cash (via transfer from a Vietnamese bank) or in-kind (machinery, design equipment). Importantly, you must also prove financial capacity—e.g. bank statements, audited financial reports, or bank confirmation letters.
Procedures for Establishing a Fashion Design Company with Foreign Capital
Once your documentation is ready, the incorporation process proceeds through two main steps:
Investment Registration Certificate (IRC)
Typically takes about 15 working days. You submit your dossier to the Department of Planning and Investment in the province or city where your headquarters will be located. For standard projects without pre-approval requirements, review is usually straightforward if the dossier is complete.
Enterprise Registration Certificate (ERC)
After obtaining the IRC, you apply for the ERC. Required documents include: company charter, list of members or shareholders, details of the legal representative, and registered office address. Once issued, you can proceed with post-establishment steps like seal carving, opening a bank account, and registering for taxes.
Next Steps for Legally and Efficiently Operating the Company
Beyond establishment, here are vital considerations to ensure smooth operations:
Register Appropriate Industry Codes and Obtain Additional Permits if Required
Certain activities—such as online fashion sales, fashion shows, or in-house production—may require additional permits or specific industry codes.
Trademark Protection and Intellectual Property
Given the creative nature of the fashion industry, early registration of trademarks, design copyrights, or brand name protection is strongly advised to avoid plagiarism or disputes later on.
Tax and Labor Policy Guidance
Investors must consider obligations such as corporate income tax, value-added tax, withholding tax (for cross-border transactions), and comply with labor laws regarding employment contracts, social insurance, working hours, and regional minimum wages.
If you’re planning to open a fashion design company in Vietnam, feel free to contact DEDICA Law Firm—we have supported numerous foreign investors in establishing and operating their companies lawfully, promptly, and effectively.
We offer full-spectrum legal support from company formation, licensing, intellectual property registration, to handling taxation, labor matters, and commercial contracts.
Setting up a foreign-invested fashion design company in Vietnam isn’t complicated if you understand the process and prepare early. With Vietnam’s open investment environment and the fashion industry’s rapid growth, now is the perfect time for you to enter the market.
Contact DEDICA Law Firm for in-depth legal consultation!
📞 Hotline: (+84) 39 969 0012 (available via WhatsApp, WeChat and Zalo)
🏢 Head Office: 144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City
⏰ Business Hours: Monday – Friday, 8:30 AM – 6:00 PM
Reach out now to receive your first consultation free from our professional legal team!
