How Foreign Entity Could Set up a Branch Office in Vietnam

Set up a Branch Office in Vietnam

To set up a branch office in Vietnam, the trader will need to apply and obtain the establishment license; and have a seal bearing the name of the branch.

What is a Branch Office in Vietnam?

A branch of a foreign business entity in Vietnam (referred to as the “Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

Who Can Set up a Branch Office in Vietnam?

A foreign business entity or a foreign trader is allowed to set up a branch office in Vietnam to conduct business activities.

Having the right to conduct business activities in Vietnam and make profit are how a branch differs from a representative office in Vietnam. A branch depends on the foreign business entity that set-up the branch while a foreign owned company set-up in Vietnam exists by itself. The Vietnam Department of Industry and Trade will be approving the establishment of a branch office in Vietnam while Vietnam Ministry of Planning and Investment will be the State agency that coordinate the setting up a company in Vietnam.

Rights of the Branch Office in Vietnam

-To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.

-To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.

-To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.

-To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.

-To remit profits abroad in accordance with the law of Vietnam.

-To have a seal bearing the name of the branch in accordance with the law of Vietnam.

-To conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

Conditions to Set up a Branch Office in Vietnam

A foreign company which has effectiveness business activities will be allowed to open the branch office in Vietnam if this company has real demand to open the market in Vietnam and meet some conditions as below:

-Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;

-Having been operating for at least five years after its lawful establishment or business registration.

Who grant the Certificate of Branch Office in Vietnam

The issuance of the Certificate of Branch will be granted by the Department of Industry and Trade Department after the foreign company meets all of conditions as Vietnam legal requirements.

The issuing period will be within 20 working-days after the date of submitting the full valid documents as requested.

How a Law Firm Could Help Trader to Set up a Branch Office in Vietnam?

We as professional law firm could help the clients doing business in Vietnam. We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest protection, risk mitigation and regulatory compliance. ANT Lawyers have law offices in in Hanoi, Ho Chi Minh City and Danang.