ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

9.27.2015

Which Form of Investment – Branch or Company?

Foreign entities can set-up branch offices in Vietnam and establish foreign investment-funded enterprises in Vietnam to carry out business activities.


There are several main different aspects between opening a branch office or establish a foreign owned company in Vietnam.
  1. Conditions
  • Permits for establishment of Vietnam-based branches of foreign enterprise shall each have a valid term of five years.
  • Foreign enterprise must choose between establish a 100% foreign capital enterprise or form a joint-venture with domestic investor or company.
  1. Certificate
  • The operation license of a Branch
  • Investment certificate of an enterprise
  1. Capital
  • Optional, foreign entity will decide how much money to invest in branch. The allocation capital for branch is capital for subordinate units.
  • Mandatory, foreign entity will need to provide minimum capital as required by Vietnam Law in conditional investment area.
  1. Obligation of owner
  • For branch, owner take full responsibility
  • For company, owner take responsibility within the capital contributed
  1. Others
  • For branch office setting up, the procedure is less complicated compared to those for the establishment of a 100% foreign owned company;  branch is able to carry out trading and some other activities as stipulated by Vietnam laws and the WTO commitments which Vietnam enters i.e. bank, insurance, securities, legal, tax, accounting services.  The business lines of a branch have to be aligned with the business lines of the headquarter of the foreign entity.
  • Setting up foreign owned company would be more complicated than the setting up of the branch office, however this form of investment has more flexibility and freedom as it is a stand alone Vietnam entity recognized under Vietnam laws.
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ANT Lawyers is a Vietnam law firm with international standards, recognized by IFLR1000 on Financial and Corporate practice.  We are an exclusive Vietnam member of Prae Legal, the global law firm network covering more than 150 jurisdictions.  The firm provides a range of legal services as following to multinational and domestic clients.
This publication is designed to provide updated information of legal matters, and does not constitute professional advice.