[4 min read]
Economic growth, political stability and geographic and labor advantages will certainly help Vietnam to be an essential partner and market in Southeast Asia within the next decade. The Government of Vietnam has put a great deal of effort into developing infrastructure in key economic and industrial zones in order to attract quality investment. Additionally, Vietnam is committed to reducing administrative procedures to boost the Vietnam investment climate.
In 2019, Vietnam had 3,883 newly registered projects with total new registered capital of USD16.7bn and total estimated FDI of USD38bn — a 7.2% increase per annum. Without hesitation, it can be said there is a positive trend in foreign investors’ interest toward the Vietnamese market.
Previously, the 2005 Investment Law of Vietnam did not separate the investment certificate and business registration certificate for foreign investors; however, the amended 2014 Investment Law separated them into two registration steps. Nevertheless, foreign investors wishing to register their business in Vietnam must apply for an investment registration certificate (IRC) and an enterprise registration certificate (ERC).
Specifically, if an enterprise invests in the form of contributing capital or buying shares, it does not have to obtain an ERC while complying with the 2014 Investment Law. On the other hand, if an investor wants a direct presence in Vietnam and does not want to inherit an existing business, he/she can set up a new enterprise and is obliged to obtain both an IRC and ERC.
According to the 2014 Investment Law, an IRC is a paper or electronic document bearing registered information about the Vietnam investment project of investors. The release time is 15 working days after receiving a completed application dossier from the investor. The first step of the application must be registered on dautunuocngoai.gov.vn. Once the IRC is issued, the investor must then apply for an ERC to establish the new enterprise that will implement the investment project
Current regulation advises that Vietnam investment projects within industrial parks (IP) apply for an IRC through their respective IP management board and an ERC through the local department of planning and investment. In many cases, BW supports our future tenants with translating and notarizing documents before submitting them to authorities. Below is the standard license application process that BW supports its customers with:
To find out more about registration procedures for foreign manufacturers in Vietnam and to receive free assistance from BW for Vietnam investment projects, please contact our hotline (+84) 28 710 29 000 or send an email to [email protected].