Question

Answer

Set up branch of foreign company in Vietnam ?

Issues and procedure regarding to setting up a branch of a foreign business entity in Vietnam include:

Business line:

According to the Vietnam’s Commitment on Services, the foreign entity is required to have business lines that are not restricted in Vietnam, for example: 

For Management consultant services (CPC 865):

The foreign company shall only be allowed to do business in general management consulting services (CPC 86501), such as: policy formulation, determination of the organizational structure that will most effectively meet the objectives of the organization, legal organization, strategic business plans, defining a management information system, development of management reports and controls, business turnaround plans, management audits, development of profit improvement programmes and other matters.

For Production management consulting services (CPC 86505):

The foreign entity shall not be allowed to do business in mineral exploitation, oil, gas and related sectors. 

In addition, the branch manager of a foreign entity must be a resident of Vietnam.

For Wholesale trade services (CPC 622); Wholesale trade services of basic industrial chemicals (CPC 62276) are conditional business lines in Vietnam, the foreign company is required to apply for business licence issued by the Vietnam’s Ministry of Trade.  

Procedure to set up a branch:

Procedure to establish a branch in Vietnam of a foreign company (e.g. a company registered in Malaysia) issued by the Ministry of Trade of Vietnam in accordance with the provisions in Decree No. 72/2006/NĐ-CP dated July 25, 2006 providing guidelines on the Commercial Law regarding representative office, branch of foreign traders in Vietnam./. 

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Phone: 0914 165 703 

Email: dmslawfirm@gmail.com 

DMS Law firm in Vietnam
Director
(Signed)
Lawyer Do Minh Son