Buying a Vietnamese Company
An operating company can provide licences, people, customers and facilities faster than a new business can build them. The same company may carry unpaid tax, invalid contracts, employment exposure or a licence that changes when foreign ownership enters.
The value of the acquisition therefore depends on whether the target owns and can preserve the assets management expects to buy.
Buying a Vietnamese company in an M&A transaction should begin with market entry strategy that include market-access and red-flag due diligence before the investor agrees price, control or completion timing.
Before buying a Vietnamese company, confirm foreign ownership is permitted and whether M&A registration is required. Verify title to shares or capital, beneficial ownership, corporate authority, licences, tax, land, labour, contracts, disputes, IP, data, environment and debt. Make completion conditional on approvals and critical consents. Use price adjustment, indemnity or remediation for risks that cannot be cleared before closing.
The target’s existing domestic status does not answer the foreign investor’s market access.
The Vietnam Investment Law requires foreign acquisitions to satisfy market-access, national-security and relevant land conditions. Registration before the ownership change can apply for conditional activities, specified moves relating to foreign ownership and certain land locations.
Complete the foreign ownership and market access review before signing an unconditional deal.
Confirm that the seller legally owns the shares or capital and can transfer them.
Review enterprise records, member or shareholder registers, contribution evidence, pledges, options, nominee arrangements, marital-property issues where relevant and beneficial-ownership information.
Vietnam’s enterprise-registration framework now includes beneficial-owner disclosure duties. The transaction records should reflect the real ownership and control.
Check the charter, licences, governance, legal representatives, past capital contributions and material approvals.
Unpaid or improperly recorded capital can affect seller rights and company compliance. Historic changes may not have been registered or approved correctly.
The transaction approvals should cover sale, purchase, changes of management, charter and any new capital.
Identify the licence that creates the target’s value.
Confirm validity, scope, conditions, renewal, reporting, facility connection and whether foreign ownership or control triggers amendment, re-approval or loss.
A licence held by an individual, affiliate or landlord is not automatically an asset of the target.
Review tax filings, invoices, payroll, withholding, transfer pricing, customs, related-party transactions, losses, incentives and tax audits.
A contract indemnity is useful only if the seller can satisfy it after closing.
Consider retention, price adjustment or specific remediation for material exposure.
Verify land-use or lease rights, landlord authority, permitted use, term, rent, deposits, mortgages and change-of-control consent.
For factories and regulated facilities, review construction, fire, environment and operating approvals. Confirm ownership of equipment and inventory.
Land location can also affect foreign-acquisition registration under the Investment Law.
Review employment contracts, payroll, social insurance, internal rules, foreign workers, disputes, accrued benefits and key-person retention.
Identify who holds customer, technical, licence and authority knowledge. The business may depend on a founder or manager who is not committed after closing.
Prepare post-completion appointment, retention and authority documents before the control change.
Review material customers, suppliers, distributors, leases, loans, guarantees and related-party contracts.
Check termination, assignment, change-of-control, exclusivity, penalty and governing-law provisions. Search for litigation, arbitration, enforcement and authority investigations.
Hidden guarantees and informal related-party balances can change the effective purchase price.
Confirm ownership or licence of trademarks, software, domains, content, trade secrets and technical material.
Review developer, employee and contractor assignments. Check cybersecurity incidents, privacy obligations, customer consents and cross-border data arrangements.
The target should control the digital assets needed to operate after the seller leaves.
The purchase agreement should connect approval, payment and control.
Use conditions for M&A registration, lender or landlord consent, licence action and remediation. At closing, update corporate records, management, bank authority, beneficial ownership and licences.
The investor should also have an integration plan for finance, compliance, people, contracts and IT.
The first risk is buying a licence that cannot survive foreign ownership. The second is relying on seller warranties without checking whether the seller can pay a claim. The third is completing legal ownership before bank, management and system control are ready.
Compare the acquisition against greenfield or joint venture entry in Vietnam before treating the target as the only route.
Q1: Can a foreign investor buy 100% of a Vietnamese company?
Sometimes. The answer depends on market access, sector conditions, land and the target’s activities.
Q2: When is M&A registration required?
It can apply to conditional sectors, specified foreign-ownership changes above 50% and certain land locations under the 2025 Investment Law.
Q3: Should the investor buy shares or assets?
Compare liability, tax, licenses, contracts, employees and transferability.
Q4: Can licences transfer automatically with the company?
Some remain with the company, but foreign ownership or control may trigger amendment, conditions or re-approval. Verify each licence.
Q5: How long should due diligence take?
Scope depends on target size, risk and document quality. Set the review around value drivers and deal-stopping issues rather than a generic period.
Q6: Are warranties enough?
No. They allocate risk but do not replace diligence, remediation or payment security.
Q7: What should happen immediately after closing?
Secure corporate records, bank access, management authority, systems, licences, employees and key counterparties.
Tuan Nguyen is the Managing Partner and founder of ANT Lawyers, with more than 20 years of experience across legal practice, management and compliance. He advises foreign companies, investors and manufacturers on corporate, commercial, international trade, regulatory and dispute-related matters in Vietnam. He holds an LLB from Hanoi National University School of Law and an MBA from Warwick Business School, and is an Associate Member of the Chartered Institute of Arbitrators.
Founded in 2012, ANT Lawyers is a Vietnam law firm with offices in Hanoi, Ho Chi Minh City and Da Nang. Our corporate lawyers advise on company formation, investment licensing, M&A and corporate governance in Vietnam. We combine legal analysis with practical understanding of Vietnam’s regulatory environment and local administrative practice.
This article is for general informational purposes only, does not constitute legal advice, and does not create a lawyer-client relationship. Vietnamese laws, regulations and administrative practice change over time, and the correct position for any matter depends on its specific facts and the rules in force when action is taken. Verify the current position before relying on anything stated here, and consult qualified counsel on your specific situation.
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You could reach ANT Lawyers for advice via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529
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