What to Prepare to Open a Translation and Interpretation Company in Vietnam with FDI Capital?

The demand for professional translation and interpretation in Vietnam is rapidly increasing, especially in the context of deeper international integration. From commercial and technical documents to international meetings and conferences, businesses and organizations require high-quality language services. Therefore, many foreign investors have seen this opportunity and wish to establish translation and interpretation companies in Vietnam under the form of foreign-invested enterprises (FDI). However, this seemingly “soft” field still contains specific legal requirements.

Is it possible to establish a translation company with FDI capital?
Before starting the company registration process, investors need to understand whether the translation and interpretation sector in Vietnam is open to foreign investment and, if so, under what conditions.

Is translation and interpretation a restricted business line?
According to Vietnamese law and WTO commitments, translation and interpretation services fall under the group of services “without investment restrictions” for foreign investors. This means FDI investors may establish a 100% foreign-owned company to operate in this sector. This is a significant advantage compared to other sectors restricted by ownership ratios or joint venture requirements.
Nevertheless, investors must still comply with all legal provisions on investment, enterprises, as well as obligations related to taxation, licensing, and labor management in Vietnam.

Suitable enterprise types for this sector
Investors may choose among common types of enterprises such as:

1. One-member or multi-member limited liability company (LLC)

2. Joint stock company (JSC)
   Depending on the development strategy, cooperation model, and investment scale, the choice should be carefully consulted to ensure legal compliance while optimizing operations.

Necessary steps when opening an FDI translation company in Vietnam
Establishing a translation company with FDI capital involves more than just submitting documents and waiting for approval. Investors need clear planning for several key steps:

1. Prepare investment documents and choose a suitable business location

   • Application for investment project implementation

   • Investor’s legal documents (passport, business registration certificate if an organization)

   • Proof of financial capacity and business plan
     Choosing a prime location (Ho Chi Minh City, Hanoi, Da Nang) is crucial for access to clients and skilled linguists. The premises must also align with local planning and permitted business functions.

2. Obtain the Investment Registration Certificate (IRC) and Enterprise Registration Certificate (ERC)

   • Apply for IRC at the Department of Planning and Investment

   • Register ERC to officially establish the company
     The process usually takes 15–30 working days, depending on locality and dossier completeness.

3. Register business codes and other necessary licenses

   • Relevant code: 74909 (Other professional, scientific and technical activities n.e.c.), which includes translation and interpretation services.

   • If offering language training or software solutions, additional codes are required.

   • For hiring foreign interpreters, investors must apply for work permits and register labor use plans.

Business strategy advice for FDI translation companies in Vietnam

1. Build a qualified interpreter team: Recruit language experts with specialized knowledge (law, healthcare, engineering) and collaborate flexibly with freelancers and specialists.

2. Apply technology and protect IP: Use CAT tools, project management platforms, and register trademarks/copyrights for software and internal documents.

3. Develop professional contracts and confidentiality policies: Draft clear service agreements, confidentiality clauses, and complaint resolution processes to minimize legal risks and strengthen client trust.

Conclusion
Establishing a foreign-invested translation company in Vietnam is not only a lucrative business opportunity but also requires careful preparation in both legal and operational strategies. With proper guidance and structured planning, investors can quickly capture this niche market.

DEDICA Law Firm, with extensive experience in investment, corporate, licensing, and intellectual property, is ready to support you from planning and dossier preparation to post-establishment operations.

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