Vietnam, with its strong economic growth potential and increasingly stable investment environment, is attracting great attention from foreign investors. To seize opportunities in this new and promising market, foreign investors need to clearly understand the necessary investment procedures when entering Vietnam. Investment procedures for foreigners are not only the first step to start a business but also an important factor to help investors ensure legality, stability in operation and full compliance.
1. Legal basis
- Investment Law 2020.
- Enterprise Law 2020.
- Decrees and circulars providing detailed guidance on foreign investment.
2. Forms of investment for foreigners
Forms of investment for foreigners in Vietnam are very diverse, meeting the different needs and business goals of investors. Below are the common forms of investment:
2.1. Investment in establishing a new economic organization
100% foreign-owned enterprise: Foreign investors establish a company with all capital owned by themselves. This enterprise operates independently and is fully responsible before Vietnamese law.
Joint venture enterprise: Foreign investors contribute capital with Vietnamese investors to establish an enterprise with capital ownership according to the agreed ratio. This is a common model in industries where the law stipulates the maximum capital contribution ratio of foreign investors.
2.2. Investing in capital contribution, buying shares or capital contributions in enterprises
Foreign investors contribute capital or buy back shares/capital contributions of enterprises operating in Vietnam. This can be buying shares in joint stock companies or contributing capital in LLCs. This is a form that helps investors enter the market quickly without having to establish a new enterprise.
2.3. Investing under a business cooperation contract (BCC)
This form does not require the establishment of a new legal entity but the parties will cooperate in business based on the agreement in the contract. Business cooperation contracts are often applied in projects of specific nature or in industries that restrict the establishment of new companies.
2.4. Investment in the form of PPP (Public-Private Partnership Contract)
This form is applied in infrastructure development projects or public service provision (such as transportation, water supply, healthcare, education). Foreign investors sign contracts with state agencies to jointly implement the project.
2.5. Investment through opening branches and representative offices
Branch: Foreign investors can open branches in Vietnam to carry out commercial activities and provide services. Branches have the status of individuals and conduct direct business activities.
Representative office: Used to perform marketing functions, market research, support and business connection for the parent company without directly participating in profitable businesses in Vietnam.
2.6. Indirect investment through the stock market
Foreign investors can buy stocks, bonds and other securities listed on the Vietnamese stock market without establishing an economic organization or being directly present in Vietnam. This is a form of indirect investment that is more flexible and less risky than direct investment.
The above forms help foreign investors have many options suitable for their business goals and strategies when investing in Vietnam, while creating favorable conditions for Vietnam to attract foreign capital flows in many different fields.
3. Investment procedures for foreigners in 2025
The above is the basic procedure for foreigners to carry out investment procedures in Vietnam. This procedure may vary slightly depending on the specific industry and type of project.
Investment procedures for foreigners in Vietnam require strict compliance with legal regulations and proper implementation of necessary steps to ensure legality and stability during operation. Food For You is proud to be a trusted partner, accompanying foreign investors throughout this journey. With a team of experienced experts and knowledgeable about Vietnamese law, we are committed to supporting customers from the stage of preparing documents, providing legal advice, to completing all procedures, creating a solid foundation for success and sustainable development in the Vietnamese market.
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