Company Formation, Lasted News

Starting an Import Export Company in Vietnam: A Guide to Licenses & Procedures

Posted on 15/04/2026 by SEN

Import export company in Vietnam – is 100% foreign ownership allowed in this sector?

Vietnam has emerged as one of Southeast Asia’s most dynamic trading hubs, supported by a strong network of Free Trade Agreements (FTAs) including CPTPP, EVFTA, UKVFTA, and RCEP. These agreements provide preferential tariff rates, streamlined market access, and enhanced supply chain efficiency for both import and export activities. Combined with modern logistics infrastructure such as the deep-water ports at Cai Mep-Thi Vai and Cat Lai, along with expanding international airports, Vietnam offers foreign investors an ideal gateway to establish an import export company in Vietnam.

In 2026, the Law on Investment 2025 (effective from March 1, 2026, with conditional business lines from July 1, 2026) introduces significant improvements, including an optional ERC-first pathway and a substantial reduction in conditional sectors. This guide provides a clear, up-to-date roadmap for setting up a 100% foreign-owned (FDI) import-export company in Vietnam, covering the legal framework, licensing steps, post-incorporation compliance, tax obligations, and practical FAQs.

1/ Legal Framework for Import Export Company in Vietnam

Vietnam’s investment regime for foreign direct investment (FDI) in trading activities is based on the Law on Investment 2025, the Law on Enterprises 2020 (as amended), and the Law on Foreign Trade Management 2017. Since its WTO accession in 2007, Vietnam has progressively liberalized trading rights and grants national treatment to properly registered foreign-invested enterprises (FIEs).

Key features under the 2025 Law include:

100% foreign ownership permitted for most general trading, import, and export activities.

Trading rights automatically granted through registered business lines (VSIC codes) in the IRC and ERC, allowing import and export of non-prohibited goods.

Reduction of approximately 38 conditional business lines and revision of another 20 sectors (effective July 2026), making the setup process more investor-friendly.

Optional ERC-first approach: Eligible investors can incorporate the company before obtaining the Investment Registration Certificate (IRC), with the IRC to be secured within 12 months.

Understanding Trading Rights: Import, Export, and Distribution

Import export company in Vietnam – clear differentiation helps prevent common compliance issues:

Export rights: Allow purchasing goods domestically and exporting them. FDI companies generally enjoy this without additional licensing for non-restricted items.

Import rights: Permit bringing goods into Vietnam for resale, processing, or internal use, in line with the registered business scope.

Distribution rights (wholesale/retail): More strictly regulated and may require additional approval from the Department of Industry and Trade (DoIT), especially for certain consumer goods. Pure import-export operations typically do not need full distribution rights.

Accurate registration of VSIC codes and project objectives is essential to avoid customs delays or operational restrictions.

2/ Step-by-Step Licensing Process for FDI Import Export Company in Vietnam

The licensing process has become more flexible in 2026. The traditional route is IRC → ERC, but the new optional ERC-first path accelerates initial incorporation for qualifying projects. The overall timeline is typically 4–8 weeks, handled mainly by the provincial Ministry of Finance.

Foreign investors are required to obtain two key certificates before operating a business, including an import export company in Vietnam.

Step 1: Securing the Investment Registration Certificate (IRC)

The IRC approves the investment project, including capital, location, objectives, and business lines.

Required documents include:

Application form for investment registration.

Detailed investment project proposal (business activities, capital sources, and timeline).

Proof of the investor’s financial and legal capacity (bank statements, audited accounts, or commitments; passports and business documents must be consular legalized and translated into Vietnamese).

Proof of business address (lease agreement or ownership documents).

Processing time: Approximately 5-7 weeks for standard projects (longer for conditional cases).

The IRC serves as the legal foundation for company formation and trading rights.

EXPLORE SET UP COMPANY SERVICES

Step 2: Obtaining the Enterprise Registration Certificate (ERC)

Apply for the ERC via the National Business Registration Portal to establish the legal entity and obtain a tax code.

Key documents: import export company in Vietnam

Copy of IRC (if applicable).

Company charter.

List of members/shareholders and legal representative details.

Power of attorney (if needed).

Processing time: 7 – 10 working days.

The ERC enables opening a Direct Investment Capital Account (DICA), signing contracts, and starting preparatory operations.

>>> Reference: Essential Step For Setting Up a Company in Vietnam| Trading Businesses

Step 3: The Mandatory “Business License” for Trading Activities

For pure import export company in Vietnam, no separate general trading license is required beyond properly registered business lines in the IRC/ERC, thanks to Vietnam’s WTO commitments. Trading rights are embedded in these certificates.

However, attention is needed in the following cases:

Distribution/wholesale activities: May require a specific Business License for goods trading and related activities from the Department of Industry and Trade (DoIT).

Restricted or conditional goods (e.g., rice, sugar, petroleum, tobacco, certain chemicals): Additional permits or quotas from relevant ministries are mandatory.

Post-setup: Register for a customs code if engaging in frequent import/export operations.

Always cross-check HS codes against the latest prohibited and restricted lists (updates to Decree 69/2018/ND-CP and its successors). Many investors overlook the DoIT sub-license when distribution elements are involved, leading to compliance gaps.

3/ Essential Post-Incorporation Compliance & Tax Planning

After obtaining the licenses, the focus shifts to operational readiness and risk mitigation.

Capital Contribution Rules (The 90-Day Deadline)

Investors must fully contribute the registered charter capital within 90 days from the date of ERC issuance (excluding time for asset transportation, import, and ownership transfer). Failure to meet this deadline may result in administrative fines, blocked bank transactions, or requirements to adjust the charter capital. Choose a realistic capital level that matches your anticipated trade volume. All capital contributions must be made through the dedicated DICA.

Overview of Tax Planning

Corporate Income Tax (CIT): Standard rate of 20%. Preferential rates (10% for 15 years or 17% for 10 years) and exemptions are available for encouraged sectors, locations, or export-oriented projects.

Value-Added Tax (VAT): 0% on exports (with possible refund of input VAT); standard 10% or reduced rates on imports and domestic sales.

Import/Export Duties: Preferential or zero rates under FTAs, with exemptions on machinery and equipment for qualifying projects.

Early tax planning helps optimize cash flow, especially for export-focused businesses.

4/ Key Taxes FDI Trading Companies in Vietnam Must Comply With

FDI trading companies must comply with the following key taxes:

VAT: Charged on imports (creditable or refundable for exporters); 0% rate on qualified exports.

CIT: 20% on taxable profits, with available incentives and 5-year loss carry-forward.

Personal Income Tax (PIT): Progressive rates from 5% to 35% on employee salaries, plus withholding on certain foreign payments.

Import/Export Duties: Calculated based on HS codes and applicable FTAs — critical for profit margin planning. Restricted goods may be subject to quotas or special taxes.

Foreign Contractor Withholding Tax: Applies to payments for overseas services (combined CIT + VAT).

Maintaining accurate accounting records is essential for claiming VAT refunds and duty exemptions. Audits and customs inspections are common, so robust bookkeeping is highly recommended. For specific goods such as petroleum or rice, additional excise or consumption taxes may apply.

>>> Download Vietnam Tax Handbook For Investor

5/ FAQ: Frequently Asked Questions about Setting Up an Import Export Company in Vietnam

> What is the minimum capital requirement?

There is no statutory minimum capital for general trading companies. However, the charter capital should be realistic and sufficient for the intended business scale. Typical starting amounts range from USD 20,000 to USD 100,000 or more, depending on operations.

> How long does the entire licensing process take?

Usually 6–8 weeks for obtaining the business license for import–export activities. Additional time is required for restricted goods or distribution rights.

> Which items are restricted or prohibited?

Prohibited items include weapons, explosives, and certain used consumer goods. Restricted items (requiring special licenses or quotas) include rice, petroleum products, tobacco, sugar, certain chemicals, and cultural products. FDI companies often face limitations when exporting rice or trading petroleum.

> Do I need a physical office or warehouse?

A registered business address is mandatory. Virtual offices have certain limitations; however, at the initial stage, you may use a virtual office to complete the company registration before securing a suitable physical location.

Warehousing requirements will depend on your specific business model.

> Can business lines be amended later?

Yes, you can amend or add business lines later. This process requires approval from the licensing authority.

6/ Conclusion & Strategic Consultation Offer for Import Export Company in Vietnam

In 2026, establishing an import export company in Vietnam has never been more accessible, thanks to the streamlined Law on Investment 2025, strong FTA benefits, and excellent logistics infrastructure. By properly following the IRC and ERC process, registering accurate trading rights, meeting the 90-day capital contribution deadline, and maintaining tax compliance, foreign investors can successfully enter one of Asia’s most promising trade markets.

However, nuances related to conditional goods, distribution rights, and post-setup obligations still require careful attention to avoid unnecessary delays or penalties.

Our specialized Vina TPT legal team provides comprehensive support for FDI company formation, licensing, tax optimization, and ongoing compliance tailored specifically for import export businesses in Vietnam.

Contact Vina TPT today for a personalized consultation and turn your import-export ambitions into a compliant and profitable operation in Vietnam.

BOOK A FREE CONSULTATION

(This guide is based on regulations as of April 2026. Laws and implementing decrees may be updated — please consult official authorities or qualified legal and tax advisors for your specific situation.)

Lasted News, Accounting & Tax

[Newsletter] Vietnam Tax Policy Updates February 2026 – VAT, CIT, PIT, and Tax Administration

Posted on 07/04/202609/04/2026 by SEN

The Vietnam Tax Policy Updates for February 2026 have been officially released, marking a significant shift in the regulatory framework for VAT, CIT, FCT, and tax administration procedures. For FDI enterprises operating in Vietnam, staying closely aligned with these Vietnam Tax Policy Updates is the key to maintaining compliance, optimizing cash flow, and preparing for future tax audits.

1. Value Added Tax Updates

Advertising Revenue from YouTube Subject to 10% VAT Rate

According to Official Letter No. 1068/CT-CS issued on February 12, 2026, the information in the Vietnam Tax Policy Updates clarifies the VAT obligations for digital content creators:

Period before July 1, 2025: In cases where a company receives revenue sharing (typically 55%) from Google (YouTube) through video uploads, this total income is identified as revenue from advertising activities. Accordingly, the enterprise is mandatory to declare and pay VAT at a rate of 10%.
Period from July 1, 2025 onwards: VAT policies will be strictly applied according to the Law on Value Added Tax No. 48/2024/QH15. Businesses should pay special attention to invoice and document conditions to correctly apply these new regulations.

2. Corporate Income Tax & Foreign Contractor Tax

Reforming Documentation Procedures for International Transactions

This month’s Vietnam Tax Policy Updates record significant efforts in reducing administrative procedures related to CIT and FCT:

FCT Compliance: An important change is the abolition of the requirement to submit copies of business licenses or practice certificates of foreign contractors to the tax authorities. Instead, taxpayers only need to store these documents at the enterprise’s headquarters for tax administration inspection purposes upon request.
CIT Finalization: The tax administration authority has issued new general declaration forms for CIT and host country profits, helping to simplify calculations for petroleum activities (including forms 03-1A, 03-1B, 03-1C/TNDN).
Collateral Assets: Quarterly tax declaration dossiers for credit institutions declaring on behalf of taxpayers with collateral have also been officially abolished, helping to reduce the periodic reporting burden.

3. Personal Income Tax Updates

Significant Simplification of Family Circumstance Deduction Dossiers

A prominent highlight in the Vietnam Tax Policy Updates this time is the reduction of unnecessary paperwork for PIT from salaries and real estate transfers:

PIT from Salaries & Wages: Employees and businesses no longer have to submit copies of tax deduction documents if the paying organization has sent full electronic data to the tax administration system.
Dependent Registration: Separate dependent registration forms (Form 07/DK-NPT-TNCN, 07/THDK-NPT-TNCN) are officially abolished. Instead, this information will be integrated directly into the individual’s first-time tax registration process.
Real Estate Transfer: Dossiers are simplified to the maximum by removing the requirement to submit copies of identity cards (CCCD) and notarized transfer contracts. Taxpayers only need to provide simple photocopies instead of originals or certified copies as before.

4. Land Use Tax & Petroleum Activities

New Forms to Improve Management Efficiency

To improve efficiency in tax administration, the Vietnam Tax Policy Updates have introduced updated forms:

Non-agricultural Land Use Tax: A new declaration form has been issued, allowing taxpayers to directly register for tax exemption or reduction on the declaration without having to prepare a separate dossier as previously required.
Petroleum Sector: Natural resource tax, CIT, and host country profits have now been consolidated into general declaration forms for both provisional calculation and year-end finalization, creating data synchronization.

5. Tax Administration: Penalty Framework under Decree 310

Effectively starting from January 16, 2026, Vietnam Tax Policy Updates emphasize the amendments in Decree No. 310/2025/ND-CP. This decree changes the face of tax administration activities through:

Invoice Penalties: Adjusting the fine bracket for acts of issuing invoices at the wrong time or failing to issue invoices according to regulations.
Aggravating Circumstances: Clearly defining “large-scale” violations based on the number of violating invoices or the total amount of tax evaded (including VAT, CIT, etc.).
Right to Accountability: Updating new procedures allowing taxpayers to exercise their right to accountability before official administrative sanction decisions are issued.

6. Transitional Provisions for 2026

Understanding the transition period is the most critical part of the Vietnam Tax Policy Updates to avoid systematic errors:

For the 2025 Tax Period: Businesses continue to perform declaration and finalization according to the old forms prescribed in Decree 126/2020/ND-CP and Circular 80/2021/TT-BTC.
For Tax Periods from 2026 onwards: All new forms mentioned in this Vietnam Tax Policy Updates newsletter regarding VAT, CIT, and FCT will officially become mandatory.

Conclusion

The updates in the Vietnam Tax Policy Updates for February 2026 show a clear trend: Simplifying administrative procedures while tightening tax discipline through digitalization. Proactively adjusting to these new regulations is a vital factor for every business.

At Vina TPT, we specialize in handling complex situations related to VAT, CIT, and FCT. Our team of experts is always ready to ensure that your tax administration processes are fully compliant with the latest changes from the Vietnam Tax Policy Updates.

Contact Vina TPT today for professional tax advice!

Legal News

[Hiring] SENIOR HUMAN RESOURCES CONSULTANT

Posted on 07/04/2026 by SEN

1. ABOUT VINA TPT

Vina TPT is an Accounting – Tax – HR – Business Advisory services company. We focus on providing value-added financial consulting services which aim at creating a strong competitive advantage for our clients in a rapidly changing environment.

2. Recruitment position

We are currently seeking a Senior Human Resource Consultant to join our team. This role offers an excellent opportunity for experienced HR professionals to work closely with FDI companies in Vietnam and deliver comprehensive HR solutions in a dynamic, international business environment.

As a Senior Human Resource Consultant, you will be involved in end-to-end HR service delivery, including recruitment support, labor contract management, payroll and benefits administration, and handling employee relations matters. You will also play a key role in ensuring compliance with Vietnamese labor regulations while supporting clients in their day-to-day HR operations.

This position is ideal for candidates who are detail-oriented, proactive, and eager to further develop their expertise in HR consulting, while building long-term career growth in a professional services setting.

3. Working location:

Vina TPT office – 83B Hoang Sa, Tan Dinh Ward, HCMC

4. Job description / Main responsibility:

As a Senior Human Resources Consultant, you will be able to participate in providing HR services for FDI companies in Vietnam. You will have the opportunity to gain critical skills that are essential to advance career paths in the field of HR services.

Receive and process recruitment-related documents, including posting job openings, screening candidates, scheduling interviews, and tracking results;

Perform procedures related to labor contracts, including drafting contracts, managing employee records, and monitoring contract expiration dates;

Manage the salary and benefits system, including calculating salaries, bonuses, allowances, and insurance benefits;

Resolve labor relations issues, including disciplinary actions, handling complaints, and advising employees on labor law-related matters;

Perform other HR administrative tasks, including managing employee records, tracking leave days, and updating employee information;

Other tasks/duties as requested by clients/service team leaders, etc.

5. Requirements:

Educational Background:

– Bachelor’s degree in Human Resource Management, Law, Economics, or related fields;

– Professional certifications such as SHRM-CP, SHRM-SCP, or equivalent are preferred.

Work Experience:

– At least 03 years of experience in Human Resources, including at least 02 years in a similar position;

– Experience working in a multinational corporation or FDI company is preferred;

– Experience working in HR consulting firms, global management consulting firms, or specialized consulting firms, or internal experience in large-scale projects is a plus.

Skills and Knowledge:

– Proficient in English (both speaking and writing);

– Excellent communication, presentation, and negotiation skills;

– Knowledge of Vietnam Labor Law and regulations related to FDI companies;

– Comprehensive HR management skills, including recruitment, training, performance management, compensation and benefits, and labor relations;

– Problem-solving, critical thinking, and effective teamwork skills;

– Ability to work independently and under high pressure;

– Proficient in HR management software and office productivity tools;

– Experience in change management and HR transformation is a plus;

– Demonstrated success in current role and experience in one or more of the company’s core capabilities.

6. Benefits:

Salary and Bonuses:

Gross Salary: Basic Salary + Allowances à NEGOTIABLE

+ Basic Salary: From 60% or more of Gross Salary (social insurance contributions based on the Basic Salary)

+ Allowances: about 40%

Bonuses: 13th-month salary + performance-based bonus (based on individual KPI evaluation and company business performance).

Evaluation:

Performance evaluation: one per year;

Salary review: one per year (based on evaluation results and company business performance).

Other Benefits:

Insurance:

- Social insurance, health insurance, unemployment insurance in accordance with the law;

- Supplementary health insurance (private insurance) for employees and their families (depending on position and seniority).

Leave: 12 annual leave days.

Health check-up: Annual health check-up.

Training and Development:

- Opportunities to participate in professional training courses to improve skills;

- Training cost support (depending on the program and company regulations);

- Career development and promotion opportunities within the company.

Working Environment:

- Professional, dynamic, and friendly working environment;

- Opportunities to work with leading experts in the industry;

- Participation in team-building activities and company events.

Other Benefits:

- Travel and business trip allowance (if applicable);

- Other employee benefits policies.

How to Apply

If you are passionate about content creation and want to start your marketing career with real-world experience, please send your CV and a short cover letter (if available) to:

Email: trunghieunhi@vinatpt.com (CC email: infor@vinatpt.com)
Email Subject: [Senior HR Consultant] – Full Name

For any questions, please contact our hotline/Zalo: 0984 980 069

Contact VINA TPT for Support

(+84) 984 980 069
infor@vinatpt.com
www.vinatpt.com
5th Floor, More Building, 83B Hoang Sa, Da Kao Ward, District 1, HCMC

Accounting & Tax, Lasted News

Outsourced Bookkeeping Services in Vietnam: Why It Helps Businesses Grow Faster

Posted on 24/02/202624/02/2026 by SEN

Managing in-house financial records often drains vital time and capital that should be spent on business expansion. Instead of struggling with complex tax compliance and reporting, savvy businesses are turning to outsourced bookkeeping to reduce overhead costs and guarantee professional accuracy.

This article explores how outsourced bookkeeping services as a strategic growth engine, highlighting the specific challenges it solves, the seamless workflow provided by Vina TPT, and the ideal timing to transition for maximum operational freedom.

1. What is Outsourced Bookkeeping?

Outsourced bookkeeping means delegating your daily financial tasks: transaction recording, bank reconciliations, invoice management, financial statements, VAT/CIT reporting, and compliance to a professional external team. Unlike hiring a full-time accountant (with high salary, benefits, and training needs), you pay a fixed monthly fee for expert, scalable support.

This model is perfect for SMEs and foreign-invested companies in Vietnam that want to avoid local accounting complexities while staying compliant with VAS, IFRS, and tax regulations.

Learn more about Vietnamese accounting standards (VAS)

2. Key Challenges of In-House Bookkeeping That Slow Growth

In-house bookkeeping often creates hidden barriers:

High salary costs for qualified accountants (VND 15 – 30 million/month + insurance and bonuses).
Constant training to keep up with frequent law changes (VAT adjustments, e-invoice mandates, CIT updates in 2026).
Risk of penalties from errors in reporting or late filings (fines can reach tens of millions VND).
Management time wasted on admin instead of sales, product development, or market expansion.
Difficulty scaling during rapid growth or seasonal peaks without adding headcount.

These issues can consume 20–30% of operational budget and delay business momentum.

3. How Outsourced Bookkeeping Accelerates Business Growth

Partnering with Vina TPT for outsourced bookkeeping drives faster growth by:

Offering predictable low costs, typically 30% cheaper than in-house, freeing capital for marketing, hiring, or R&D.
Ensuring expert compliance, our team is always updated on 2026 regulations, eliminating penalty risks and audit stress.
Providing scalable support, handle increased transactions or headcount seamlessly without hiring extra staff.
Delivering faster, accurate reporting and real-time financial insights for better strategic decisions.
Allowing focus on core business, leaders concentrate on sales, innovation, and expansion instead of paperwork.

Explore Outsourced Bookkeeping Services

4. How Vina TPT’s Outsourced Bookkeeping Service Works

Vina TPT’s service is designed to be simple, secure, and efficient for foreign and local businesses.

Process overview:

Free consultation & needs assessment: We discuss your business size, transaction volume, current setup, and goals.
Secure data handover: Transfer existing records (bank statements, invoices, contracts) via encrypted portal.
Daily/weekly bookkeeping: Our certified accountants record transactions, reconcile accounts, manage payables/receivables, and prepare trial balances.
Monthly compliance & reporting: Deliver accurate financial statements, VAT/CIT returns, e-invoice filings, and tax declarations on time.
Ongoing advisory & support: Unlimited queries, year-end audit preparation, and strategic financial guidance.

All work is 100% compliant with Vietnamese laws, using secure cloud tools. Pricing is transparent and flexible, starting from VND 3 million/month based on volume (no hidden fees).

5. When to Choose Outsourced Bookkeeping

This serivce is the strategic choice for newly established startups, SMEs with 1 to 50 employees, and high-growth firms looking to scale without administrative friction. It is particularly essential for businesses navigating complex compliance requirements, such as VAT, CIT, and e-invoicing allowing leadership to mitigate regulatory risks while focusing entirely on expansion. By transitioning to this service, companies can ensure professional financial management while maintaining the agility needed to thrive in a competitive market.

6. Conclusion

Outsourced bookkeeping eliminates major growth barriers: high costs, compliance headaches, and time lost on admin. With Vina TPT, you get reliable, expert support at a fraction of the cost—freeing your team to focus on what drives success: expansion and innovation.

Ready to accelerate your growth? Contact Vina TPT today for a free consultation and personalized cost-saving assessment. Let our experts handle your bookkeeping so you can build your future in Vietnam.

BOOK A FREE CONSULTATION

Company Formation

Set Up Company Service in Vietnam for Foreigners – Expert Setup & Free Consultation 2026

Posted on 24/02/202624/02/2026 by SEN

Vietnam remains a top FDI destination in 2026, with strong economic growth, favorable FTAs, and attractive incentives in high-tech, manufacturing, and renewable energy sectors. For foreign investors, accessing this market through company formation offers huge potential, but the process involves complex regulations, IRC/ERC registration, document legalization, and compliance hurdles that can be time-consuming and risky without proper support.

In this article, we provide a clear, step-by-step guide on how to use our set up company service in Vietnam for foreigners. We cover detailed timelines, required documents, costs, and key steps, while highlighting how Vina TPT’s professional service makes the entire process fast, compliant, and hassle-free Law on Investment 2020 (Luật đầu tư 2020)

1. Why Choose Vietnam for Company Setup in 2026

Vietnam continues to be a premier investment hub, allowing 100% foreign ownership in most industries and offering no minimum capital requirements for many sectors. Investors can also benefit from generous tax incentives, including CIT reductions and exemptions for priority projects. In 2026, the landscape is even more efficient; with e-ID integration and streamlined online submissions via the National Business Registration Portal, utilizing a professional set up company service ensures a faster, more transparent, and fully compliant entry into this booming market.

Types of Business Entities for Foreigners

Entity Type	Foreign Ownership	Minimum Capital	Main Activities Allowed	Best For
100% Foreign-Owned LLC	100%	No (most sectors)	Full trading, manufacturing, services	Most foreign investors
Joint Venture	Partial	Varies	Shared ownership with local partner	Restricted sectors
Branch Office	100%	No	Same as parent company (limited scope)	Expanding existing business
Representative Office	100%	No	Market research, liaison only	Testing market before full setup

The 100% Foreign-Owned LLC is the most popular and flexible option for foreigners seeking full control.

2. Step-by-Step Set Up Company Process

The entire process typically takes 2 – 4 months in 2026, depending on sector, document readiness, and province.

Step 1: Obtain IRC (30 – 45 Working Days) Submit your investment dossier – including the business plan, legalized parent company certificates, and office lease – to the DPI. This certificate approves your project’s scale and legitimacy. Non-conditional sectors often see faster approval through 2026’s expedited digital tracks.
Step 2: Get ERC (7 -10 Working Days) Once the IRC is approved, file for your Enterprise Registration Certificate via the National Portal. This step officially establishes your legal entity and tax ID. The process is now fully streamlined online, ensuring a rapid turnaround for foreign investors.
Step 3: Post-Setup Tasks (1 – 3 Weeks) Finalize operations by engraving the company seal, opening corporate bank accounts, and registering for e-invoices. Be mindful that delays often stem from document legalization or specific sub-license requirements. Our set up company service at Vina TPT proactively manages these hurdles to keep your launch on track.

Explore the Service

3. Common Challenges and How Vina TPT’s Set Up Company Service Helps You Succeed

Foreign investors often encounter delays from incorrect document legalization, misunderstanding conditional sectors, or missing the 90-day capital contribution deadline after ERC issuance. Choosing the wrong entity or location can also lead to higher costs and ongoing compliance issues.

Vina TPT’s set up company service gives you a clear edge:

End-to-end support: We manage everything—from free company name check, document preparation & legalization, IRC/ERC submission, to bank account opening, tax registration, and full post-setup compliance.
Faster timeline: With over 20 years of experience and strong relationships with DPI offices nationwide, we complete most setups in 2–3 months (often faster than average).
Risk-free & fully compliant: 100% data protection, transparent fixed pricing (no hidden fees), and zero-penalty guarantee through expert legal review.
Exclusive advantages: Free initial consultation, name availability check, and feasibility assessment before you commit—saving you time and avoiding costly mistakes.

Hundreds of clients from the US, EU, Japan, Singapore, and Korea have successfully launched their businesses in Vietnam through Vina TPT—focusing on growth instead of paperwork.

4. Start Your Business Journey in Vietnam with Vina TPT

Setting up a company in Vietnam in 2026 is more accessible than ever, thanks to streamlined regulations and strong FDI support. With the right partner, you can go from idea to operational business quickly, compliantly, and cost-effectively.

Ready to get started? Contact Vina TPT today for your free consultation, company name check, and personalized set up company service plan. Let our experts handle the details so you can focus on building your success in Vietnam.

BOOK A FREE CONSULTATION

Company Activities

Vina TPT | Year End Party 2025 – Celebrating Our Journey Together

Posted on 12/02/2026 by SEN

The Vina TPT Year End Party 2025 was more than just a celebration – it was a meaningful evening where our entire team gathered to reflect on a year of dedication, growth, and shared success.

After 365 days of delivering professional accounting & tax services and supporting our clients with commitment and precision, the Vina TPT team took a well-deserved pause to celebrate the people behind every achievement.

A Year of Hard Work and Milestones

Throughout 2025, Vina TPT Consulting Firm continued to strengthen its position as a trusted partner for businesses seeking reliable accounting & tax solutions.

This year marked important progress:

Enhancing service quality and client experience
Streamlining internal processes
Expanding professional expertise
Strengthening our team culture

Each milestone represents the collective effort, responsibility, and perseverance of our team members.

An Evening of Connection and Appreciation

The Year End Party created a space where colleagues connected beyond daily tasks and deadlines.

✨ Laughter and joyful moments
✨ Engaging team performances
✨ Shared reflections on the year gone by

It was a night filled with positive energy, reminding us that behind every report, deadline, and consultation is a team that works with passion and unity.

Gratitude and Looking Ahead

At Vina TPT, we believe that people are the foundation of sustainable success. This event was an opportunity to express sincere appreciation to every team member for their dedication and professionalism.

As we step into 2026, we look forward to:

New challenges
Greater achievements
Continued excellence in accounting & tax services

Together, we are ready for another year of growth and impact.

Thank You, Team Vina TPT

Thank you to our incredible team for your hard work, resilience, and unwavering spirit throughout the year.

Here’s to a brighter, stronger, and more successful journey ahead with Vina TPT Consulting Firm.

Lasted News, Company Formation, Labor & Insurance Knowledge

Vietnam Representative Office Compliance Obligations Guide

Posted on 04/02/202604/02/2026 by SEN

Are you a foreign investor eyeing Vietnam’s dynamic market but wary of full-scale commitments? Establishing a Representative Office (RO) offers a low-risk entry point for market research, networking, and promotion without generating revenue. However, navigating compliance is crucial to avoid fines, license revocation, or unintended tax liabilities like Permanent Establishment (PE) risks. This comprehensive guide, updated for 2026 regulations, draws from key laws such as the Commercial Law 2005, Enterprise Law 2020, and Decree 07/2016/ND-CP (with procedural tweaks noted in recent updates).

Key benefits of staying compliant include:

Protecting your parent company’s reputation and avoiding penalties

Leveraging Vietnam’s FDI incentives while minimizing bureaucratic hurdles.

Ensuring seamless extensions or closures without disruptions.

By the end, you’ll have actionable insights, checklists, and expert tips to thrive. Let’s dive in, starting with the basics.

1. What is a Representative Office in Vietnam?

A Representative Office (RO) in Vietnam serves as a non-commercial extension of a foreign company, ideal for exploring opportunities without direct business activities. Governed by evolving regulations, it’s a popular choice for FDI firms in 2026, with over 2,000 active ROs contributing to Vietnam’s economic growth. This section builds a foundational understanding, comparing it to other structures for informed decisions.

Permitted and Prohibited Activities

ROs are strictly limited to non-revenue-generating roles to prevent PE triggers. Permitted activities include:

Market surveys and research.

Promoting parent company products/services.

Liaison with local partners.

Attending trade fairs and seminars.

Prohibited activities encompass:

Direct sales or contract signing.

Revenue generation or invoicing.

Manufacturing or service provision for profit.

Sub-leasing office space.

For example, an RO can host promotional events but cannot close deals—violations could lead to audits or shutdowns.

Comparison with Branches and Subsidiaries

Structure	Legal Status	Activities	Taxation	Liability
Representative Office	Dependent unit, no legal personality	Non-commercial (research, promotion)	No CIT/VAT; PIT on staff	Limited to parent company
Branch	Dependent, but operational	Commercial trading possible	CIT (20%), VAT applicable	Parent liable
Subsidiary (LLC/JSC)	Independent entity	Full business operations	CIT (20%), VAT, audits	Limited to invested capital

ROs offer simpler compliance for initial market entry, unlike branches which require more reporting or subsidiaries needing capital injection (minimum varies by sector). Choose RO if your goal is testing waters without financial exposure.

2. Key Conditions for Establishing a Representative Office

Setting up an RO in Vietnam is straightforward but requires meeting eligibility thresholds to ensure alignment with national interests. This process, handled by the Department of Industry and Trade (DOIT), emphasizes transparency and typically completes in 4-6 weeks. Here’s a logical breakdown from requirements to execution.

Eligibility Requirements for Foreign Companies

Foreign entities must fulfill these criteria:

Parent company operational for at least 1 year in home country.

Activities compliant with Vietnam’s WTO and international treaties (e.g., no restricted sectors without ministerial approval).

Proof of good standing and financial stability via audited statements.

No prior violations in Vietnam.

These ensure only reputable firms enter, reducing risks for local markets.

Required Documents and Application Process

Follow these numbered steps:

Prepare legalized documents: Certificate of incorporation, audited financials (last year), and parent company charter.
Draft application form (Form I-1 from Decree 07/2016/ND-CP).
Secure office lease agreement in Vietnam.
Notarize and translate all docs into Vietnamese.
Submit to provincial DOIT or relevant ministry.

Include a letter of appointment for the Chief Representative. Digital submissions are encouraged in 2026 for faster processing.

3. Post-Registration Compliance Procedures

Once licensed, immediate actions are vital to operationalize your RO legally. This phase focuses on administrative setups within 30-45 days, preventing delays in hiring or banking. Overlooking these can trigger inspections—follow this timeline-driven guide.

Initial Setup Steps (Stamp, Tax Code, Bank Account)

Register official seal (stamp) with Public Security within 15 days.
Obtain tax identification number (TIN) from local tax authority.
Open a foreign currency bank account for operational expenses (e.g., salaries, rent).
Register with social insurance if hiring staff.

These steps enable daily functions; use banks like HSBC for RO-specific accounts.

Notifying Authorities and Publishing Announcements

Notify DOIT of operations start within 7 days.

Publish establishment announcement in three consecutive newspaper issues (print or online).

Inform tax and labor departments of Chief Representative details.

This publicizes your presence, ensuring transparency per Decree 07.

Common Pitfalls to Avoid

Delaying seal registration: Leads to invalid contracts.

Ignoring TIN: Blocks payroll processing.

Incomplete publications: Fines up to 10 million VND.

Tip: Engage local consultants for seamless compliance.

Establishment Representative Office with Vina TPT

4. Tax Compliance Obligations for Representative Offices

ROs enjoy tax exemptions but must handle employee-related duties diligently. No CIT or VAT applies since no revenue is generated, but PIT withholding is mandatory. This section outlines exemptions and filings with practical examples.

Personal Income Tax (PIT) Withholding and Reporting

Withhold PIT on salaries (progressive rates: 5-35%).

File monthly/quarterly declarations; annual finalization by March 31.

Example: For a 20 million VND salary, withhold ~10% PIT plus insurances.

Report via e-tax portal for efficiency.

Other Taxes and Filings

Business license tax: Pay if operations exceed thresholds.

Monthly filings: PIT and insurances.

Deadlines: Quarterly by end of month following quarter.

5. Labor and Payroll Compliance Requirements

Hiring staff for your Representative Office (RO) in Vietnam must align with the Labor Code 2019 (amended) and Social Insurance Law 2024 to ensure fair treatment and avoid penalties. This includes drafting compliant contracts, managing payroll deductions, and handling insurances. With employer contributions totaling approximately 21.5% of the salary base (as per 2026 rates), budgeting is essential. Below, we clarify employee contributions to social insurance (SHUI) and expand on requirements for foreign workers, including the Temporary Residence Card (TRC).

Hiring Employees and Labor Contracts

Draft bilingual (English-Vietnamese) contracts detailing job terms, salary, benefits, working hours (up to 48 hours/week), and probation periods (up to 60 days for skilled roles).

Limit staffing to roles essential for RO functions like market research or liaison; there’s no strict cap, but justify headcount in annual reports to authorities.

Consider including non-compete clauses for sensitive positions, but ensure they comply with Vietnamese law limits (e.g., no more than 1 year post-employment). For all employees, emphasize transparency to build trust and reduce disputes.

Social, Health, and Unemployment Insurance Contributions

All employees, including locals and foreigners (with some exemptions), must participate in mandatory insurances under the Social Insurance Law 2024. Contributions are calculated on the salary base (minimum regional wage or actual salary, capped at 20 times the base salary—approximately 36 million VND/month in 2026 for most cases). Here’s the breakdown for 2026 rates, clarifying both employer and employee shares:

Insurance Type	Employer Share (%)	Employee Share (%)	Base	Notes
Social Insurance (BHXH) – Pension and Death	14	8	Salary	Covers retirement and survivor benefits.
Social Insurance (BHXH) – Sickness and Maternity	3	0	Salary	Employer-funded for sick leave and maternity (up to 6 months paid).
Social Insurance (BHXH) – Occupational Accident and Disease	0.5	0	Salary	Covers work-related injuries; optional for low-risk ROs but mandatory in practice.
Health Insurance (BHYT)	3	1.5	Salary	Provides medical coverage; integrated with national health system.
Unemployment Insurance (BHTN)	1	1	Salary	Supports job loss benefits (up to 60% salary for 3-12 months).
Total	21.5	10.5	Salary	Overall cap: 32% combined.

Explore Payroll & Insurance Services

Work Permits and Visas for Foreign Staff

Foreign staff (expats) add expertise but require extra steps for legal work and residency. Process these early to avoid operational delays.

Apply for a work permit via DOLISA (exemptions available for intra-company transfers, managers, or short-term experts under 30 days).
Secure a visa (e.g., LĐ1/LĐ2 for labor) upon entry or conversion.
Requirements: Health certificate (issued in Vietnam or legalized abroad), clean criminal record (from home country), and professional qualifications (e.g., degree + 3 years experience for skilled roles).

The process typically takes 15-30 days; renew permits annually (up to 2 years max). For long-term stays, obtain a Temporary Residence Card (TRC) to replace frequent visa runs—it’s mandatory for expats residing over 1 year and simplifies travel in/out of Vietnam.

6. Annual Reporting and Record-Keeping Duties

Sustained compliance hinges on timely reports and audits. ROs must document activities for potential inspections every 3-5 years. Use templates for efficiency.

Representative office annual performance report

Submit to DOIT by January 30: Detail operations, staff, expenses.

Include financial summaries (no audits required).

Template: Cover achievements, challenges, future plans.

Statistical and Labor Reports

Report Type	Frequency	Deadline
Annual performance report	Annual	Jan 30
Labor Changes	Monthly	End of month
Statistical	Semi-annual	Jul/Jan

7. Ready to Ensure Full Compliance for Your Representative Office in Vietnam?

Navigating the compliance landscape for a Representative Office (RO) in Vietnam can be complex, with evolving regulations, strict deadlines, and potential risks like fines, license revocation, or Permanent Establishment (PE) issues. By following the detailed guidance in this article you can operate confidently and focus on market growth.

At Vina TPT, we specialize in supporting foreign investors and FDI enterprises with comprehensive, reliable solutions tailored to Vietnam’s business environment. With over 20 years of experience and a team of certified experts in Vietnamese Accounting Standards (VAS), IFRS, international tax law, and FDI regulations, we have successfully assisted more than 200 international clients in establishing and maintaining compliant operations.

Our Key Services for Representative Offices and FDI Businesses

Tax advisory and compliance — including PIT withholding/finalization, business license tax handling, and PE risk assessments.

Labor and HR support — contract drafting, social/health/unemployment insurance registration (BHXH/BHYT/BHTN), work permit/TRC applications for foreign staff, and monthly labor reports.

RO setup, extension, and closure consulting — handling all paperwork, DOIT submissions, seal/tax code/bank account setups, and termination clearances.

Annual reporting and audit preparation — ensuring timely activity/statistical reports and readiness for government inspections.

We prioritize 100% data protection, transparent pricing, and personalized service to help your RO thrive without unnecessary stress. Whether you’re just starting market research or managing an established office in Ho Chi Minh City or beyond, our one-stop approach saves time and minimizes risks.

Let Vina TPT be your trusted partner in Vietnam – ensuring seamless compliance so you can focus on business growth in one of Asia’s most promising markets. Reach out now, we’re here to help!

BOOK A FREE CONSULTATION

Business Knowledge, Lasted News

[Newsletter] Vietnam Tax Policy Updates December 2025 – VAT, FCT, PIT and Labor Regulations

Posted on 22/01/202610/03/2026 by SEN

Vina TPT Tax Expert analyzing Vietnam Tax Policy Updates 2026

Based on the latest Vietnam Tax Policy Updates, Vina TPT is pleased to provide a summary of critical tax and labor regulations that will directly impact business operations starting from late 2025 and into 2026. In the context of a rapidly changing legal environment, staying compliant is not just a legal requirement but a strategic advantage for enterprises operating in Vietnam.

1. Vietnam Tax Policy Updates: Value Added Tax (VAT)

Regarding VAT refunds for investment projects implemented before 01 July 2025 under the new regulations.

Official Letter No. 5938/CT-CS dated 12/12/2025 of the Department of Taxation refers to the value-added tax (VAT) policy related to tax refund for investment projects. Accordingly, in case business establishments have investment projects that have been invested before July 1, 2025 and are still in the investment stage from the effective date of Decree 181/2025/ND-CP (July 1, 2025), tax refund regulations for investment ( according to Clause 2, Article 15 of the VAT Law No. 48/2024/QH15 and Article 30 of Decree No. 181/2025/ND-CP ).

This means that business establishments need to clearly determine the time of starting the investment project and the implementation period to determine the benefits of VAT refund according to the new regulations. At the same time, operating business establishments with investment projects eligible for VAT refund must make a separate VAT declaration dossier for the investment project (on the declaration form 02/GTGT) in accordance with the law on tax administration (Point d, Clause 2, Article 7 of Decree No. 126/2020/ND-CP).

2. Vietnam Tax Policy Updates: Foreign Contractor Tax (FCT)

2.1. Regarding the contractor tax policy in cases where the company generates income from subscription service contracts in Vietnam.

Official Letter No. 4998/HYE-QLDN2 dated 02 December 2025 issued by Hung Yen Provincial Tax Department, the tax payment obligations are noted as follows:

a. Determination of Service Type:

Important: First, it is necessary to clearly determine whether the services provided under the contract are software products or software services as prescribed in Decree No. 71/2007/ND-CPstatus2 . To determine, it is necessary to contact the state management agency for information and communication.
If it is a software product/service: Exempt from VAT.
If not a software product/service: Subject to VAT and CIT according to the provisions of contractor tax.

b. Value Added Tax (VAT):

If not a software product/service:
Tax calculation method: Calculated directly on revenue.
VAT rate: 5% of revenue.

c. Corporate Income Tax (CIT):

Tax calculation method:
Direct method (percentage to revenue): Applicable if the foreign contractor does not meet the conditions for paying tax according to the declaration method (revenue – expenses).
Turnover for CIT calculation: All turnover received by the foreign contractor, exclusive of VAT, including expenses paid by the Vietnamese party on behalf of the Vietnamese party (if any).
Rate (%) of CIT calculated on taxable turnover:
If income from royalties (according to Clause 3, Article 7 of Circular 103/2014/TT-BTCstatus2 ): 10%
If not royalty income: 5%

d. Important Note:

New guiding documents: When the competent authority issues a document guiding the implementation of the Law on CIT No. 67/2025/QH15, it is necessary to comply with these new regulations.
Accurate determination of the type of service: Determining the exact type of service (software or not) is a key factor in determining the right tax obligation

2.2. Regarding Foreign Contractor Tax (FCT) on the use of foreign brands.

Based on the guidance provided by the Quang Ngai Provincial Tax Department in Official Letter No. 3601/QNG-QLDN1 dated 12 December 2025, if a Vietnamese company enters into a contract with a foreign company for the use of instructions and content associated with the foreign company’s brand in Vietnam, the Vietnamese party shall bear the responsibility for declaring and paying Foreign Contractor Tax (FCT) as follows:

a. Responsibility for tax deduction and payment:

Vietnamese companies must be obliged to declare, deduct and pay tax on behalf of foreign contractors for the copyright fee for using foreign brands in Vietnam, because this is a payment to foreign organizations that do not have permanent establishments in Vietnam.

b. Legal grounds:

The declaration, deduction and payment of tax must comply with the provisions of current law, including:

Circular No. 103/2014/TT-BTC dated 06/8/2014 of the Ministry of Finance (especially Article 4).
VAT Law No. 48/2024/QH15 dated 26/11/2024, Decree No. 181/2025/ND-CP dated 01/7/2025, Circular No. 69/2025/TT-BTC dated 01/7/2025 (related to VAT).
Decree No. 126/2020/ND-CP dated 19/10/2020 of the Government (especially Point n, Clause 4 and Point e, Clause 6, Article 8).

c. Form of Payment:

This liability arises regardless of the form of payment, including payment directly or through payment.

d. Tax Declaration:

VAT and CIT of foreign contractors applied by the direct method or CIT under the mixed method must be declared for each time of payment incurred. If you pay multiple times a month, you can declare it monthly.
VAT and CIT by the direct method or CIT by the mixed method of foreign contractors must be finalized at the end of the contract. CIT according to the declaration method of foreign contractors is settled annually.

3. Vietnam Tax Policy Updates: Personal Income Tax (PIT)

3.1. Regarding the registration of a new tax identification number (TIN) and the tax identification number for dependents.

Official Letter No. 6030/CT-NVT dated 16 December 2025 issued by the Tax Department regarding notes on the registration of new tax identification numbers and tax identification numbers for dependents. Specifically, pursuant to Clause 2 Article 38 and Clause 2 Article 39 of Circular No. 86/2024/TT-BTC, from 1 July 2025, the personal identification number shall be used in replacement of the individual tax identification number (TIN).

Taxpayers may use their personal identification number when their tax registration information has been successfully matched with the individual’s information stored in the National Population Database. At that time, the taxpayer shall record the personal identification number in the “Tax Identification Number” field on tax returns, tax payment documents, invoices, personal income tax (PIT) withholding dossiers, and other dossiers, documents, and materials that require declaration of the TIN.

From July 1, 2025, enterprises will register new tax returns for employees when they first go to work or register new employees for new employees/dependents who do not have tax returns according to the provisions of Point b, Clause 1, Article 22 of Circular 86/2024/TT-BTC. After successful tax registration (i.e. the taxpayer’s tax registration data matches the personal information stored in the national population database), the enterprise uses the personal identification number for tax deduction, declaration and payment as prescribed.

Regarding the self-registration of dependents when changing workplaces, taxpayers can register dependents for family circumstance deduction through web portals such as: National Public Service Portal (https://dichvucong.gov.vn); Information system for settlement of administrative procedures (https://dichvucong.gdt.gov.vn); Electronic Tax Portal (https://thuedientu.gdt.gov.vn “personal” module or register directly with the tax authority.

Taxpayers are only required to register and submit documents proving that each dependent is eligible for family circumstance deduction (according to the provisions of Point i, Clause 1, Article 9 of Circular No. 111/2013/TT-BTC). However, when changing the place of work, there is no connection to share information between the income-paying agencies (the new working unit has no basis to calculate the deduction of dependents), so the taxpayer must re-register the dependents at the new workplace.

Currently, the Ministry of Finance is developing a draft of a new PIT Law and a new Law on Tax Administration. Accordingly, the tax authority will build and operate a centralized electronic data system, allowing the storage and lookup of information on family circumstance deduction of dependents through tax identification numbers/personal identification numbers

4. Invoice Policy Updates

4.1. VAT policy and invoicing regulations regarding the time of invoice issuance and the VAT policy applicable to digital products and services.

According to Official Letter No. 5706/CT-CS dated 3 December 2025 issued by the Tax Department, the related contents are responded as follows: Regarding value added tax (VAT) policy, the Company should note that from July 1, 2025, regulations on 0% tax rate, conditions for applying 0% tax rate and conditions for deduction and refund of tax for exported goods and services have been specifically regulated in new legal documents ( Article 9 of Law on Value Added Tax No. 48/2024/QH15, Decree No. 181/2025/ND-CP and Circular No. 69/2025/TT-BTC ). This includes digital information content products.

For the period before July 1, 2025, it is necessary to base on the legal documents in effect at that time ( Clause 6, Article 1 of Law No. 31/2013/QH13, Decree No. 209/2013/ND-CP and Circular No. 219/2013/TT-BTC ), and at the same time refer to previous guidance documents of the Tax Department to ensure compliance with regulations at each period.

Regarding invoice issuance time, (Clause 1 and Clause 4, Article 9 of Decree No. 123/2020/ND-CP ), it is necessary to clearly define the time of transferring ownership/right to use the card to the customer according to the company’s terms of service. Accordingly, when the customer has paid, the money has been transferred to the company’s account and the customer has received the code, the transaction is considered complete . This determination needs to be based on comparison with actual records, the nature of the operation and the provisions of e-commerce law to ensure compliance with regulations on invoice issuance time.

4.2. Regarding the issuance of invoices for on-the-spot export goods.

Accordingly, Official Letter No. 3258/TNI-QLDN2 dated 1 December 2025 issued by the Tay Ninh Provincial Tax Department provides guidance on the issuance of invoices for on-the-spot export goods as follows:

The Company is responsible for issuing VAT invoices when selling goods (Article 4, Decree 123/2020/ND-CP, amended by Article 1, Decree 70/2025/ND-CP) , including cases of goods and services used for promotion, advertising, samples; goods and services used for giving, donating, exchanging, paying in lieu of salary for employees and internal consumption (except for goods circulated internally to continue the production process); exporting goods in the form of lending, borrowing or returning goods. Invoices must be issued and delivered to the buyer.

Regarding invoice content, the Company must comply with (Article 10, Decree 123/2020/ND-CP, amended by Article 1, Decree 70/2025/ND-CP) and (Clause 6, Article 28, Decree 181/2025/ND-CP) . This includes providing complete and accurate information of the buyer on the VAT invoice, especially in the case of on-the-spot export.

Regarding the conditions for deducting input VAT on goods processed for export, the company needs to ensure that it has all the required documents (Clause 6, Article 28, Decree 181/2025/ND-CP) , including: export processing contract, VAT invoice clearly stating the processing price and quantity of processed goods returned to foreign countries, transfer slip of processed products with confirmation from the parties, and must make non-cash payments according to the provisions of law. Customs declarations also need to be made according to customs laws.

5. Tax administration: Key Updates on Tax and Invoice Penalties Applicable from 16 January 2026

Official Letter No. 6175/CT-PC dated 22 December 2025 issued by the Tax Department regarding the introduction of new provisions under Decree No. 310/2025/NĐ-CP, which amends and supplements a number of articles of Decree No. 125/2020/NĐ-CP, effective from 16 January 2026, with the following important amendments and additions on tax and invoice penalties:

5.1. Supplementing the scope of adjustment and some administrative violations on taxes and invoices:

Supplementing revenues in accordance with the law on management and investment of state capital in enterprises assigned to tax administration agencies to manage revenues within the scope of adjustment.
Supplementing the sanctioned subjects being the constituent units responsible for declaration and violations related to the notification of this constituent unit.
Amending and supplementing regulations on sanctions for e-invoice service providers that provide solutions that do not comply with the principles of the law on invoices.

5.2. Amending and supplementing the principles of sanctioning administrative violations related to taxes and invoices:

Amendments to regulations on sanctions in case taxpayers incorrectly declare many indicators on tax dossiers on the same day. Abolish the aggravating circumstance of “repeated administrative violations” in some cases.

Supplementing regulations on sanctions in case taxpayers falsely declare many indicators on one tax dossier.

Supplementing regulations on sanctions for acts of invoicing at the wrong time or failing to issue invoices.

5.3. Amending and supplementing regulations on determination of aggravating circumstances of “large-scale administrative violations”:

Clearly stipulate 02 cases of application of the aggravating circumstance of “large-scale administrative violations” related to the number of violating invoices and the amount of evaded tax.

5.4. Amendments and supplements to regulations on administrative violations committed by relevant organizations and individuals:

Amending and supplementing regulations on sanctioning administrative violations against individuals and organizations (including foreign bank branches) when providing information and documents related to tax obligations and accounts of taxpayers in contravention of regulations.

5.5. Amendment of the fine bracket for acts of invoicing at the wrong time and acts of not invoicing:

Revise the fine bracket corresponding to the number of violation invoices in a case for these two acts.

5.6. To amend, supplement and abolish the competence to sanction administrative violations of titles:

Supplementing the authority to impose penalties in the form of fines for tax officials.
Amendment of names and sanctioning competence of heads of tax authorities at all levels.
Abolishing the title of chairman of the district-level People’s Committee and a number of other titles from the list of persons with sanctioning competence.

5.7. Amendments to regulations on the order and procedures for sanctioning administrative violations:

Amending regulations on the right to accountability of taxpayers, in accordance with the new provisions of the Law on Handling of Administrative Violations.

5.8. Abolition of a number of administrative violations on invoices:

Abolish acts of violating regulations on invoices ordered to be printed, invoices printed on order, sale of invoices ordered to be printed, issuance of invoices and cancellation of invoices.

6. Others: Officially Designating 24 November as “Vietnam Cultural Day”

Resolution No. 80-NQ/TW, issued on 7 January 2026, affirms that cultural and human development is a fundamental pillar of sustainable development. Accordingly, 24 November each year is officially designated as “Vietnam Cultural Day,” on which employees are entitled to a paid day off. This regulation aims to enhance cultural participation, encourage creativity, and promote a civilized and healthy lifestyle across society.

Conclusion

The Vietnam Tax Policy Updates for late 2025 and 2026 reflect a significant shift towards digitalization and more stringent compliance standards. From the transition of using personal identification numbers for PIT to the new administrative penalty framework effective January 16, 2026, it is clear that proactive preparation is essential for every enterprise.

At Vina TPT, we understand that navigating these complex changes can be challenging for businesses. Whether you need assistance with VAT refund dossiers for investment projects or clarifying Foreign Contractor Tax (FCT) obligations for digital services, our team of experts is ready to provide tailored solutions. Stay ahead of the regulatory curve and ensure your business operations remain seamless and compliant in the new year.

Contact Vina TPT today for a comprehensive tax health check and professional advisory services!

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Labor & Insurance Knowledge, Lasted News

How Foreign Companies Reduce HR Costs in Vietnam with HR Outsourcing in 2026

Posted on 15/01/202616/01/2026 by SEN

As Vietnam’s economy continues to surge in 2026, driven by a robust influx of foreign direct investment (FDI), international businesses are increasingly eyeing this dynamic Southeast Asian market. With steady GDP growth and a young, highly skilled workforce, Vietnam offers outstanding opportunities across manufacturing, technology, and service industries

However, for foreign companies new to the scene, navigating the complexities of human resources and payroll management can be a daunting and costly endeavor. From stringent labor laws to evolving tax regulations, the administrative overhead often diverts focus from core operations and inflates expenses.

HR outsourcing is a strategic solution to reduce HR costs and effectively answer how to reduce HR cost. Also known as payroll outsourcing or Employer of Record (EOR) services, it allows foreign companies to outsource non-core HR tasks to local experts in Vietnam, ensuring full legal compliance while significantly cutting expenses. With over 20 years of experience supporting more than 200 foreign clients, Vina TPT provides specialized HR outsourcing tailored for FDI businesses. This guide explains how HR outsourcing optimizes operating costs in Vietnam with the latest 2026 updates, real-world examples, and practical tips on how to reduce HR cost for sustainable growth.

1. The Rising Challenges of HR Management for Foreign Companies in Vietnam

Foreign investors entering Vietnam in 2026 face a unique set of HR hurdles that can significantly impact the bottom line. The country’s labor market is competitive, with a talent shortage in specialized sectors like IT and engineering pushing up salaries. According to recent data, the average monthly salary for a mid-level employee ranges from VND 10-15 million (approximately USD 400-600), but for expats or skilled locals, it can climb to VND 30-50 million or more.

Key challenges include:

Compliance with Evolving Labor Laws: Vietnam’s labor regulations continue to evolve, requiring strict compliance with minimum wage adjustments, overtime rules, and electronic employment contracts. Non-compliance can lead to financial penalties and reputational risks.
Payroll and Tax Complexities: Ongoing personal income tax reforms increase the complexity of payroll management, particularly for expatriate employees. Employers must accurately manage tax withholding, annual tax finalization, and mandatory social insurance contributions.
Administrative Overload: Building an in-house HR function demands significant investment in specialized staff, payroll systems, and recurring regulatory reporting, driving up operating costs for growing businesses.
Cultural and Language Barriers: Foreign firms often struggle with local recruitment nuances, leading to high turnover rates and additional onboarding expenses.

Without proper management, these issues can erode up to 20-30% of operational budgets, delaying profitability in a market where quick scalability is key.

2. How HR Outsourcing Drives Cost Optimization in 2026

HR outsourcing transfers these burdens to specialized providers, allowing companies to pay a fixed, predictable fee while gaining access to expert systems and local knowledge. In Vietnam, EOR services start from as low as USD 298 per employee per month (all-inclusive), covering everything from payroll to compliance.

Here’s a detailed breakdown of cost savings:

Cost Category	In-House HR (Estimated Annual Cost for 50 Employees)	HR Outsourcing (e.g., with Vina TPT)	Potential Savings (Percentage)
HR & Payroll Staff Salaries	VND 200-350 million (2-3 full-time specialists)	Included in fee	100% (Outsourced expertise)
Payroll Software & Tools	VND 10 – 50 million (Systems + Maintenance)	Included	100%
Compliance & Legal Fees	VND 30-100 million (Audits, Fines, Consultants)	Managed with zero penalties	Up to 80-90%
Social Insurance & Benefits	VND 100 – 200 million (Contributions + Admin)	Automated and optimized	20-30% (Efficient calculations)
Total Estimated	VND 340 -700 million	VND 120 – 400 million	Up to 40% Overall

These figures are based on 2026 market averages, where outsourcing can reduce total HR costs by up to around two-thirds for FDI firms. Beyond direct savings, it also minimizes risks – for example, helping companies avoid personal income tax compliance issues such as incorrect deductions, which could otherwise result in back taxes and interest penalties.

3. Core Benefits of HR Outsourcing for New Market Entrants

Enhanced Compliance in a Changing Landscape
In 2026, several important regulatory updates come into effect. Minimum wage increases impact social insurance contribution caps, while personal income tax reforms introduce additional deductions for high-income expatriates, such as housing allowances. HR outsourcing enables companies to adapt in real time through automated systems, including electronic labor contracts and periodic regulatory reporting.

Scalability and Flexibility
Companies can start with a small team and scale up smoothly as operations grow. Cloud-based platforms using SaaS models integrate easily with global systems, supporting hybrid workforces that combine local employees and expatriates.

Access to Local Talent and Market Insights
Providers such as Vina TPT leverage strong local networks to accelerate recruitment and shorten time-to-hire. They also provide guidance on cultural integration, helping improve employee engagement and retention.

Data Security and Transparency
With strict data protection requirements under Vietnam’s data privacy regulations, outsourcing providers rely on secure, centralized payroll systems to ensure data integrity, transparency, and reduced error risk.

Stronger Strategic Focus
By offloading administrative and compliance tasks, executives can focus on strategic priorities, such as expanding into high-tech industries that qualify for corporate income tax incentives.

4. Vina TPT’s HR Outsourcing Services: A Tailored Approach

At Vina TPT, our HR outsourcing encompasses:

Payroll Processing: Gross-to-net calculations, payslips, and multi-currency support for expats.
Insurance and Tax Management: SHUI registrations, PIT withholding, and annual finalizations compliant with 2026 reforms.
Labor Contract Services: Drafting electronic contracts per Decree 337, managing terminations, and handling disputes.
HR Advisory: Guidance on work permits, salary scales, and employee development under the new emphasis on workforce training.
Custom Reporting: Real-time dashboards for cost tracking and compliance audits.

Our fees are transparent, starting at competitive rates aligned with market standards, ensuring no hidden costs.

5. Ready to Streamline Your HR and Cut Costs in Vietnam?

In 2026, smart FDI companies are leveraging HR outsourcing to thrive amid regulatory changes. Vina TPT’s HR Outsourcing stands ready as your trusted partner, offering expert, compliant solutions that let you focus on what matters – growing your business.

We offer truly flexible pricing policies tailored to newly established FDI enterprises, even those with just 1–2 employees, while larger companies with hundreds of staff also receive customized, mutually agreeable fee structures that best suit their scale and needs.

Schedule a free consultation today for a personalized cost-saving assessment.

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Company Formation, Lasted News

Setting Up a Representative Office in Vietnam: Step-by-Step Guide for Foreigners 2026

Posted on 15/01/202616/01/2026 by SEN

As Vietnam continues to attract foreign direct investment (FDI) with robust economic growth in 2025-2026, many international businesses choose to establish a Representative Office (RO) as their initial market entry strategy. An RO allows foreign companies to build a legal presence, conduct market research, and liaise with local partners without engaging in direct profit-generating activities.

With over 20 years of experience supporting more than 200 foreign clients, Vina TPT specializes in guiding investors through this process efficiently and compliantly. This ultimate guide provides a step-by-step overview for setting up a representative office in Vietnam in 2025, based on the latest regulations under Commercial Law 2005 and Decree 07/2016/ND-CP (with minor procedural updates).

1. What is a Representative Office in Vietnam?

A representative office is a dependent unit of an enterprise that is established in a different province or country for the purpose of supporting the operations of its parent company. ts main activities typically include:

Promoting and marketing products or services
Collecting and analyzing market information
Identifying customer demands and industry trends
Providing customer consultation and support
Developing and maintaining relationships with partners
Assisting with administrative and procedural matters

Key limitations: Representative Offices cannot generate revenue, issue invoices, or conduct direct trading. If your goal involves commercial operations, consider a full foreign-invested enterprise instead.

	Representative Office	Foreign-Invested Company
Legal Status	Dependent unit; extension of the parent company	Independent legal entity; registered in Vietnam.
Business Activities	Non-profit; no direct revenue-generating activities.	Full operations; allowed to trade, manufacture, and earn profits.
Primary Purpose	Market research, brand promotion, and liaison activities.	Executing full business operations and commercial contracts.
Suitability	Ideal for testing the market and building local relationships.	Best for long-term investment and generating local revenue.

2. Eligibility Requirements for Foreign Companies

To qualify for an RO in Vietnam:

The parent company must operate legally in its home country for at least 1 year.
Business activities must align with Vietnam’s WTO commitments.
No minimum capital is required, making it a low-risk option for SMEs and startups.

3. Setting Up a Representative Office: Step-by-Step Process

The process typically takes 4 – 6 weeks months in 2026, handled by the Department of Industry and Trade (DOIT).

Step 1: Prepare Documents

In order to facilitate a seamless and efficient licensing process for a Vietnam-based representative office, foreign entities should assemble the following essential documentation:

Application form for RO establishment
Parent company’s Business Registration Certificate (legalized)
Audited financial statements (latest year)
Appointment letter for Chief Representative
Lease agreement for office premises (physical address required)
Passport/ID of Chief Representative

Note: All foreign documents need consular legalization and Vietnamese translation.

Step 2: Submit Application

After finalizing the necessary paperwork, the investor submits it to the Business Registration Office under the Department of Planning and Investment where the representative office will be located.

Under normal circumstances, the licensing authority will review and issue a result within a timeframe of 10 to 15 business days.

Step 3: Obtain RO License

Upon the successful evaluation of the application, the competent authority will formally issue the Representative Office Establishment License.

To ensure full regulatory compliance, the entity must immediately proceed with post-licensing compliance tasks, such as:

Engrave seal and register specimen
Open bank account (for expenses only)
Registering for tax if any expenses are incurred
Apply for work permits/TRC for foreign staff (if needed)

At VINA TPT, we support clients throughout every step—tracking the progress, handling all paperwork, and collecting the license as soon as the application is approved.

4. Common Challenges and Tips

To ensure your 2026 application is processed without delays, please consider these essential points:

Legalization: Start document legalization early to avoid common administrative bottlenecks.
Office Lease: Ensure a valid lease agreement is signed before submitting your dossier.

Work Permits: Foreign Chief Representatives may require a work permit to stay compliant.

5. Ready to Establish Your Representative Office in Vietnam?

Establishing a representative office is a strategic move for foreign companies to expand and engage with the Vietnamese market. However, success requires deep legal insight and meticulous preparation. To overcome language barriers and administrative complexities, partnering with a professional service is the most effective solution.

With over 20 years of expertise, VINA TPT is proud to be the trusted partner for international businesses entering Vietnam. With Vina TPT’s one-stop support, foreign investors can navigate this process seamlessly, ensuring 100% data protection and transparent costs. Contact us today for expert consultation and a seamless start to your investment journey.

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