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

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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

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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: 

  1. Prepare legalized documents: Certificate of incorporation, audited financials (last year), and parent company charter. 
  2. Draft application form (Form I-1 from Decree 07/2016/ND-CP). 
  3. Secure office lease agreement in Vietnam. 
  4. Notarize and translate all docs into Vietnamese. 
  5. 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) 

  1. Register official seal (stamp) with Public Security within 15 days. 
  2. Obtain tax identification number (TIN) from local tax authority. 
  3. Open a foreign currency bank account for operational expenses (e.g., salaries, rent). 
  4. 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. 

Vietnam-Representative-Office-Compliance-Obligations-Guide-vina-tpt-3

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). 
  • Register contracts with the local Department of Labor, Invalids, and Social Affairs (DOLISA) within 30 days of signing. 
  • 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. 

  1. Apply for a work permit via DOLISA (exemptions available for intra-company transfers, managers, or short-term experts under 30 days). 
  2. Secure a visa (e.g., LĐ1/LĐ2 for labor) upon entry or conversion. 
  3. 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! 

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Business Knowledge, Lasted News

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

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Vina TPT Tax Expert analyzing Vietnam Tax Policy Updates 2026

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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Vina TPT Tax Expert analyzing Vietnam Tax Policy Updates 2026

Labor & Insurance Knowledge, Lasted News

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

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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.

the-rising-challenge-of-HR-management-in-Vietnam

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.

core-benefits-of-hr-outsourcing

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.

BOOK A FREE CONSULTATION

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Company Formation, Lasted News

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

Posted on 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.

setting-up-a-representative-office-in-vietnam

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.

BOOK A FREE CONSULTATION

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Labor & Insurance Knowledge, Lasted News

How to Calculate Personal Income Tax 2026 in Vietnam

Posted on by SEN
how-to-calculate-personal-income-tax-2026-vinatpt

Vietnam’s Personal Income Tax 2026 law was amended Law No. 109/2025/QH15 and officially takes effect from July 1, 2026. Key rules for salary, wages, and business income, however, apply right from January 1, 2026. These updates significantly reduce the tax burden for employees and business owners amid rising living costs. 

This guide explains exactly how to calculate PIT in 2026, highlights the major changes (increased family deductions, simplified progressive rates, expanded exemptions), and provides clear, real-world examples so you can compute your tax accurately and stay fully compliant. 

1. Major Changes to Personal Income Tax from 2026 

2026 introduces the biggest PIT reforms since 2012, driven by the amended PIT Law 2025 and Resolution 110/2025/UBTVQH15. The goal is to ease pressure on middle-income earners, support digital businesses, and attract high-tech investment while keeping pace with economic growth and inflation. 

Change  Main Benefit 
Increased family deductions  Lower tax for individuals and families 
Simplified progressive brackets  Easier calculation, reduced tax for average incomes 
Expanded exemptions  Support for high-tech, agriculture, and green sectors 

These reforms make the tax system more modern, transparent, and easier to comply with. 

1.1 Increased Family Deductions Effective January 1, 2026 

From January 1, 2026, family circumstance deductions are raised to better match higher living costs, helping millions of taxpayers pay less personal income tax The personal deduction increases from VND 11 million to VND 15.5 million per month (VND 186 million per year), and the deduction per dependent rises from VND 4.4 million to VND 6.2 million per month. 

Type of Deduction  2025 Amount  2026 Amount 
Personal deduction  11 million/month  15.5 million/month 
Per dependent  4.4 million/month  6.2 million/month 

Who qualifies as a dependent? 

  • Children: Under 18; over 18 if disabled and unable to work; full-time students (university, college, vocational) under 22 with low or no income. 
  • Spouse: Unable to work or with very low/no income. 
  • Parents, grandparents, siblings: Elderly or disabled individuals with insufficient income, directly supported by the taxpayer. 

Key conditions 

  • Each dependent can be claimed by only one taxpayer. 
  • Proof is required (birth certificate, household registration, disability certificate, school enrollment, support commitment letter). 
  • Register with your employer or tax office (usually via Form 20-ĐK-TNCN) before tax is calculated. 

1.2 New Progressive Personal Income Tax 2026 Rates – Reduced from 7 to 5 Brackets 

Effective January 1, 2026, the progressive tax scale is simplified from 7 brackets to 5, with wider income ranges to reduce the effective tax rate for middle earners. The top rate remains 35%, now applying only to monthly taxable income over VND 100 million (previously VND 80 million). 

Bracket  Monthly Taxable Income (VND million)  Annual Taxable Income (VND million)  Tax Rate (%) 
1  Up to 10  Up to 120  5 
2  Over 10 to 30  Over 120 to 360  10 
3  Over 30 to 50  Over 360 to 600  20 
4  Over 50 to 100  Over 600 to 1,200  30 
5  Over 100  Over 1,200  35 

Old vs. new comparison The old 7-bracket system had narrower bands, pushing many middle-income earners into higher rates. The new structure is simpler and saves 5–15% in tax for most employees, while encouraging extra work without jumping brackets quickly. 

1.3 Expanded Exemptions, Reductions & Special Incentives 

The updated law adds 21 new exempt income categories starting in 2026, focusing on education, healthcare, green projects, and high-tech sectors. Additional benefits include a 50% reduction on certain investment income and a 5-year exemption for high-tech professionals. 

  • New exempt items: Certain overtime pay, scholarships, income from green bonds, organic agriculture, gifts under VND 10 million, disaster relief support. 
  • Special incentives: 5-year PIT exemption for experts in AI, semiconductors, and R&D; 50% reduction on income from investments in tech startups. 
Incentive Type  Condition  Duration 
Scholarship exemption  Full-time formal education  Indefinite 
5-year high-tech exemption  Experts in AI, semiconductors, R&D  5 years from 2026 
50% investment reduction  Green/technology startups  Applies to 2026+ income 

Proof (contracts, certificates) is required, often from the Ministry of Science and Technology. 

personal-incom-tax-2026-vina-tpt

2. How to Calculate Personal Income Tax in 2026 – Step-by-Step Guide 

Core formula Tax payable = Taxable income × Progressive tax rate Taxable income = Total income – Exempt items – Deductions (family + mandatory insurance + charity + eligible medical/education expenses) 

This applies to tax residents. Non-residents pay a flat 20% on Vietnam-sourced income. 

Step 1: Determine Your Tax Residency Status 

Start by confirming whether you are a tax resident or non-resident, as this determines what income is taxable. 

Under Vietnam’s PIT law: 

  • Tax resident: Present in Vietnam ≥183 days in the calendar year, or maintaining a permanent residence (owned home or long-term rental with registered address). 
  • Non-resident: Taxed only on income sourced from Vietnam. 

Tax implications 

  • Residents: Taxed on worldwide income using the 5-bracket progressive scale (5%–35%). 
  • Non-residents: Flat 20% on Vietnam-sourced salary and wages (other rates apply to specific types). 

Step 2: Calculate Taxable Income 

Basic formula: Taxable income = Total income – Exempt items – Deductions 

  1. Total income includes salary, bonuses, taxable allowances, business profits, investment returns, etc. 
  2. Exempt items include scholarships, certain overtime pay, small gifts, etc. 
  3. Deductions include: 
  • Family deduction (VND 15.5 million/month personal + VND 6.2 million/month per dependent) 
  • Mandatory social, health, unemployment insurance (BHXH, BHYT, BHTN) 
  • Charitable donations (with receipts) 
  • Medical & education expenses (new in 2026, up to VND 10 million/year – detailed guidance pending) 

Example In January 2026, Mr. A receives: 

  • Salary: VND 70,000,000 
  • Meal allowance (per company policy): VND 1,000,000 
  • Sales commission: VND 2,000,000 

No charitable contributions. Mr. A has one registered dependent (child under 18). 

Calculation: 

  • Total income: 70,000,000 + 1,000,000 + 2,000,000 = VND 73,000,000
  • Exempt: VND 1,000,000 (meal allowance) 
  • Deductions: 15,500,000 (personal) + 6,200,000 (dependent) + 4,200,000 (mandatory insurance) = VND 24,850,000
  • Taxable income = 73,000,000  – 1,000,000 – 24,850,000 = VND 47,150,000 per month 

Step 3: Apply the 2026 Progressive Rates

new-progressive-personal-income-tax-rates-vina-tpt

Apply the 5-bracket scale to taxable income, calculating tax portion by portion and adding them up. 

Continuing Mr. A’s example (monthly taxable income: VND 47,150,000): 

  • Bracket 1: VND 10,000,000 × 5% = VND 500,000 
  • Bracket 2: (30,000,000 – 10,000,000) × 10% = VND 2,000,000 
  • Bracket 3: (47,150,000 – 30,000,000) × 20% = VND 3,430,000 

Total PIT payable: 500,000 + 2,000,000 + 3,430,000 = VND 5,930,000 

Net take-home pay: 73M – 4.2M (insurance) – 5.93M (PIT) = VND 62,870,000 

3. Special Rules for Foreigners and Expatriates in Vietnam 

Foreign nationals (expats) and overseas workers follow specific PIT rules in 2026. 

  • Non-residents: Flat 20% on Vietnam-sourced income, withheld at source. 
  • Residents: Subject to the same progressive rates as Vietnamese citizens. 

Double Taxation Agreements (DTAs) Vietnam has over 80 DTAs (with the US, EU countries, Japan, Singapore, etc.). To claim relief: 

  • Submit Form NT5/TNCN 
  • Provide proof of tax residency in your home country 
  • Claim credit for taxes already paid abroad 

Example: A non-resident expat earning VND 50 million/month pays VND 10 million (20%) PIT. With a DTA, the rate may drop to 10–15%. 

These rules, plus the 5-year exemption for high-tech experts, make Vietnam attractive for skilled international professionals. 

4. Filing and Finalizing Personal Income Tax in Vietnam 

PIT filing and finalization are fully online via the General Department of Taxation portal (thuedientu.gdt.gov.vn) or eTax Mobile app. 

General deadlines (apply every year): 

  • Employer finalization (for authorized employees): By the last day of the 3rd month after year-end (usually March 31). 
  • Individual self-finalization: By the last day of the 4th month after year-end (usually April 30). → If the deadline falls on a holiday or weekend, it shifts to the next working day. 

Who must self-file? Individuals with income from two or more sources who do not meet authorization conditions, or those seeking refunds or adjustments. 

5. Vina TPT – Your 2026 PIT Solution for Expats & Businesses in Vietnam 

Vina TPT is a leading tax advisory firm in Vietnam specializing in Personal Income Tax services for expatriates and foreign-invested companies. Our experienced team provides full support, from 2026 PIT forecasting and calculation to DTA claims and maximum deduction optimization. 

Why choose Vina TPT? 

  • Free initial consultation with clear guidance 
  • Fast, accurate filing and deadline reminders 
  • Full compliance with 2026 regulations to minimize risks 

Key services 

  • PIT finalization for expats with multi-source income 
  • Assistance with high-tech and investment incentives 
  • HR training on payroll updates and withholding 

Need help with your 2026 Personal Income Tax in Vietnam? Contact Vina TPT today for expert, hassle-free support.

BOOK A FREE CONSULTATION

HR News, Labor & Insurance Knowledge, Lasted News

Vietnam to Implement Mandatory Electronic Employment Contracts from July 1, 2026

Posted on by SEN
Vietnam to Implement Mandatory Electronic Employment Contracts from July 1, 2026

vietnam-electronic-employment-contracts-vinatpt

1- Overview of Decree 337/2025/ND-CP (Electronic Employment Contracts)

Decree 337/2025/ND-CP, issued by the Government of Vietnam on December 24, 2025, marks an important milestone in the digitalization of labor relations. This Decree focuses on providing detailed regulations on electronic employment contracts, aiming to promote digital transformation in human resources and labor management.

Although the Decree takes effect on January 1, 2026, the specific regulations on the conclusion and implementation of electronic employment contracts will be fully applied from July 1, 2026, coinciding with the official operation of the National Electronic Employment Contract Platform.

The Decree consists of 5 chapters and 30 articles, developed based on the 2019 Labor Code and the 2023 Law on Electronic Transactions. Its main contents focus on the following aspects:

Definition and legal validity 

An electronic employment contract is defined as an employment contract concluded in the form of electronic data messages and has the same legal validity as a traditional paper-based employment contract. This ensures that electronic employment contracts are fully legally enforceable, provided that they comply with regulations on digital signatures, trusted timestamps, and data security
(Source: Decree 337/2025/ND-CP, Article 4).

Principles of application 

The parties involved must strictly comply with laws on labor, electronic transactions, cybersecurity, personal data protection, and electronic data storage. The Decree emphasizes voluntariness, equality, and protection of employees’ rights, while encouraging the use of electronic employment contracts to gradually replace traditional paper-based contracts, thereby reducing administrative burdens.

National platform 

Developed and managed by the Ministry of Home Affairs, the national platform will assign a unique identification code (ID) to each electronic employment contract, enabling state authorities to easily search, manage, and supervise employment relationships. This not only enhances transparency but also supports enterprises in periodic labor reporting
(Source: Government News Portal).

Scope of application 

The Decree applies to all enterprises, employers, and employees in Vietnam, including foreign employees working in Vietnam. It also clearly regulates the conversion of paper-based employment contracts into electronic form, requiring digital signatures to confirm the accuracy and authenticity.

2- How does this impact businesses? 

The issuance of Decree 337/2025/ND-CP will bring significant changes to businesses in Vietnam, especially in the context of accelerating digital transformation. Electronic employment contracts are not only a modernization tool but also offer substantial practical benefits, while also posing certain challenges that businesses must address. 

2.1 Key benefits for businesses 

  • Cost and time savings:
    Instead of printing, storing, and physically transferring documents, businesses can conclude electronic employment contracts remotely via digital platforms. For example, a multi-branch company can sign contracts with employees in different provinces without face-to-face meetings, potentially reducing administrative costs by up to 50%, according to HR experts.
  • Greater flexibility and management efficiency:
    With identification codes assigned on the national platform, businesses can easily search, update, and report employment data. This is particularly beneficial for large companies managing thousands of employment contracts. In addition, electronic employment contracts can be integrated with internal HR systems, helping to automate recruitment, payroll, and attendance processes. 
  • Enhanced transparency and legal compliance:
    Electronic contracts protected by digital signatures and trusted timestamps reduce the risk of forgery or document loss. Businesses can easily demonstrate compliance with the Labor Code during inspections by state authorities while protecting the rights and interests of both parties. 
  • Competitive advantage:
    Enterprises that adopt electronic employment contracts early are more attractive to young, tech-savvy talent and are better aligned with modern remote-working trends. 

2.2 Challenges and potential risks 

  • High technical requirements:
    Businesses must invest in digital signatures, security systems, and connectivity with the national platform. Without timely preparation, companies may face difficulties from July 1, 2026, leading to delays in signing new employment contracts. 
  • Data security risks:
    Electronic storage increases the risk of personal data breaches if cybersecurity measures are inadequate. Although the Decree requires compliance with the 2018 Cybersecurity Law, many small businesses may lack sufficient resources. 
  • Transition from existing contracts:
    Existing paper-based employment contracts need to be converted into electronic form in oder to be integrated into the national platform, requiring time and costs for digital signature authentication. 
  • Impact on employees:
    Some older employees or workers in remote areas may not be familiar with digital tools, requiring additional training and support from employers. 

Overall, Decree 337/2025/ND-CP promotes deeper integration of Vietnamese businesses into the digital economy but requires careful preparation to maximize benefits while minimizing risks. 

Decree-3372025ND-CP-Electronic-Employment-Contracts-VinaTPT

3 – What should businesses prepare for electronic employment contracts before 01 July 2026? 

To comply with Decree 337/2025/ND-CP and effectively implement electronic employment contracts, businesses should develop a detailed preparation plan as early as possible. The following practical steps are recommended: 

  • Build technical infrastructure:
    Register digital signatures for legal representatives and HR staff with licensed public certification authorities (CAs) such as Viettel CA or VNPT CA. Ensure that internal systems support secure digital signing and data storage, in compliance with ISO 27001 standards. 
  • Select an eContract service provider:
    Choose reputable providers licensed to authenticate electronic data messages, such as FPT, Viettel, or VNPT. Providers must meet 13 technical requirements stipulated in the Decree, including API connectivity with the national platform and robust data security measures. 
  • Prepare digital identification documents:
    Collect electronic citizen IDs, business registration certificates, and Level-2 electronic identification accounts for both individuals and enterprises. Employees should be encouraged to use biometric authentication (fingerprints or facial recognition) to enhance security. 
  • Training and internal process updates:
    Organize training sessions for HR teams on electronic employment contract workflows, including sending and receiving contracts, dispute handling, and reporting via the national platform. Update internal HR manuals to incorporate the new regulations. 

To support businesses in implementation, companies such as Vina TPT—a professional provider of HR, payroll, and labor compliance services in Vietnam—can serve as an ideal partner. With extensive experience in payroll outsourcing, Vina TPT helps enterprises integrate electronic employment contracts effectively and in compliance with regulations. 

Decree 337/2025/ND-CP is not only a legal requirement but also an opportunity for Vietnamese businesses to modernize HR management. Early preparation will help minimize risks and maximize the benefits of electronic employment contracts.

If you need advice tailored to your company’s specific situation, please contact Vina TPT for prompt and professional support. 

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Company Formation, Lasted News

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

Posted on by SEN

setting-up-a-company-in-vietnam-trading-Vina-TPT-Legal

Are you looking for a solution for setting up a company in Vietnam and explore opportunities in one of Asia’s fastest-growing economies? Vietnam, with its strategic geographic location along the South China Sea and borders with China, Laos, and Cambodia, has become a top destination for foreign investors in the trading sector. However, full legal compliance is essential for sustainable success, governed by the Law on Investment 2020 (amended in 2025) and the Law on Enterprises 2020. This comprehensive guide details the essential steps to set up a trading company in Vietnam, from basic concepts to full operations, catering to both informational and transactional search intent. 

  • Key Benefits: Access to FTAs for tariff reductions, excellent logistics positioning, and policies allowing up to 100% foreign ownership in most trading activities. 
  • Challenges to Consider: Administrative procedures can take 1–6 months, and it’s crucial to stay updated on recent changes, such as the 2025 Investment Law amendments permitting company establishment before obtaining the Investment Registration Certificate (IRC). 

By following these steps carefully, you can successfully start a business in Vietnam as a foreigner. 

1/ What is a Trading Company in Vietnam? 

A trading company in Vietnam specializes in buying and selling goods, including import, export, wholesale/retail distribution, and related services, regulated by Decree 09/2018/ND-CP (with a replacement draft under discussion in 2025). Unlike manufacturing companies, which focused on production or service providers offering labor or consulting, trading companies serve as intermediaries in the supply chain, connecting producers with consumers. With Vietnam’s exports surging by 28% in 2025, this sector is booming—especially in electronics, textiles, and agricultural products. According to the Ministry of Industry and Trade, trading contributes 15–20% to GDP, with an average annual growth rate of 9–10% over the past decade, fueled by international integration. 

Key Activities: 

  • Importing goods from abroad for domestic distribution. 
  • Exporting Vietnamese products to global markets. 
  • Wholesale and retail distribution through traditional or online channels. 
  • Logistics, warehousing, and product promotion services. 

Comparison table with other business types: 

Type  Key Characteristics  Example 
Trading  Focuses on buying/selling, no production  Mobile phone importer, apparel distributor 
Manufacturing  Produces goods from raw materials  Textile factory, electronics component maker 
Services  Provides labor or advisory services  Software consulting, management consulting 

2/ Benefits and Challenges of Setting Up Company in Vietnam 

Setting up a trading company in Vietnam offers substantial advantages but also involves challenges. Here is a clear comparison: 

Benefits  Challenges  Illustrative Example 
Young market with 100 million consumers and high demand  Complex and potentially lengthy administrative procedures Textile exports grew by 20% due to young population 
Strategic location near China and major sea routes  A local partner is required hoặc Local partners are required Logistics advantages reduce transport costs by 15% 
FTAs reduce tariffs and open access to EU and US markets  Currency fluctuations and legal risks  EVFTA boosts agricultural exports by 25% 

The benefits clearly outweigh the challenges with proper planning. For example, foreign investors can leverage FTAs to expand markets but must comply with regulatory requirements such as the Economic Needs Test (ENT) for multiple retail outlets. 

3/ Legal Requirements and Foreign Ownership Rules 

Under the Law on Investment 2020 (amended 2025) and the Law on Enterprises 2020, Vietnam permits up to 100% foreign ownership in most trading sectors, except for restricted industries such as pharmaceuticals, oil and gas, and printing. The 2025 amendments (effective from 2026) simplify procedures by allowing company registration before IRC issuance and reducing conditional business lines from 243 to approximately 200. These changes have driven record FDI inflows in 2025. Compliance with Decree 09/2018/ND-CP (a replacement draft pending) remains required for foreign-invested trading operations. 

Key Requirements: 

  • Investment registration with the Department of Finance (DOF) 
  • Compliance with WTO market access commitments. 
  • ENT evaluation for retail operations involving multiple stores. 

Restricted Product Categories and Conditional Business Lines 

Certain products are restricted or required special conditions under the Investment Law and Decree 09/2018/ND-CP, such as explosives, printing materials, and pharmaceuticals. 

Summary table: 

Product Category  VSIC Code  Restrictions 
Explosives  2029  Import prohibited except for national defense purpose
Printing Materials  1811  Requires approval from Ministry of Information 
Pharmaceuticals  2100  Foreign ownership limited to 49% 

Verification checklist: 

  • Check the national portal for conditional business lines. 
  • Assess legal risks with a local lawyer. 
  • Monitor the draft replacement of Decree 09 for 2026 updates. 

setting-up-a-company-in-vietnam-trading-Vina-TPT-Tax-Consultant

4/ Choosing the Right Business Structure 

Selecting the right business structure for your trading company depends on its scale and ownership. Under the Law on Enterprises 2020, the two most common forms are the Limited Liability Company (LLC) and the Joint Stock Company (JSC), with the LLC being ideal for smaller businesses due to its simpler procedures. 

  • LLC Pros & Cons: Flexible, liability limited to contributed capital; drawback: harder to raise large capital. 
  • JSC Pros & Cons: Easier to list on stock exchanges; drawback: more complex structure, requires at least 3 shareholders. 

Comparison table: 

Structure  Number of Members  Legal Liability 
LLC  1–50  Limited to contributed capital 
JSC  Minimum 3  Limited to share capital 

For foreign investors with limited capital, an LLC is the best choice for a fast start. 

LLC vs. JSC: Which is Best for Trading? 

Detailed comparison: 

LLC  JSC  Best for Trading 
Simple procedures, flexible capital  More complex, easier expansion  High for small businesses, local distribution 
No board of directors required  Requires diverse shareholders  Lower if needing large capital for exports 

LLC is generally more suitable for trading due to its flexibility. For example, a foreign agricultural trading company often opts for an LLC to quickly begin import operations. 

Consult a Business Setup Expert

5/ Capital Requirements and Financial Planning 

Vietnam imposes no fixed minimum capital for trading companies, but charter capital must be “reasonable” to demonstrate operational capability. A typical recommendation is USD 10,000–50,000, depending on the business plan. Total investment capital includes charter capital and other expenses, with full contribution required within 90 days of registration. 

Financial preparation checklist: 

  • Estimated setup costs: USD 3,000–10,000 for procedures and office. 
  • Reserve for VND/USD exchange rate risks. 
  • Budget for taxes and employee salaries. 

Estimated capital table: 

Recommended Capital  Purpose 
USD 10,000  Basic operations, small-scale distribution 
USD 50,000  Expansion of import/export activities 

6/ Essential Steps to Setting Up a Company in Vietnam as a Foreign Investor 

Setting up a foreign-invested company in Vietnam requires following a clear, structured process to ensure full legal compliance and smooth operations. This step-by-step guide is tailored for foreign-owned trading or commercial entities. 

Step 1: Prepare Your Investment Documentation 

Gather all necessary paperwork for your investment project. This includes defining your business model (e.g., Limited Liability Company – LLC, joint venture, or representative office), choosing the right structure, and outlining main activities. Verify that your industry allows foreign ownership under Vietnamese law. 

Step 2: Submit Application for the Investment Registration Certificate (IRC) 

The IRC is the foundational approval for foreign-invested enterprises. It authorizes your project and details the charter capital, scale, location, and business scope. Without an IRC, you cannot proceed to company registration. 

Required documents: 

  • Application form and a detailed project proposal (objectives, scale, capital, location, and timeline). 
  • Proof of financial capability (bank statements, audited financials, or credit agreements). 
  • Legal documents: notarized passport (individuals) or business registration certificate (organizations), both legalized. 
  • Proof of location (lease agreement or land use rights). 
  • Power of attorney (if using a third-party service). 

Foreign documents require consular legalization and official Vietnamese translation. Partnering with a professional company setup service such as Vina TPT is recommended to avoid delays. 

Step 3: Obtain the Enterprise Registration Certificate (ERC) 

After the IRC issuance, register the company to receive the ERC, which establishes its legal identity in Vietnam. 

Step 4: Open a Corporate Bank Account and Inject Charter Capital 

Open a dedicated capital account at a licensed Vietnamese bank. Contribute the full charter capital within 90 days of ERC issuance to avoid penalties and ensure the credibility for future permits. 

Step 5: Complete Tax Registration and Post-Licensing Formalities 

Register for a tax ID, VAT, and fulfill obligations such as social insurance and labor compliance if hiring staff. 

Step 6: Secure Industry-Specific Licenses (If Applicable) 

Sectors like trading, retail, F&B, education, or e-commerce may require additional permits. 

By following these steps and staying updated on regulations, foreign investors can successfully set up company in Vietnam.

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7/ Taxation, Compliance, and Ongoing Operations 

Foreign-invested trading enterprises (FDIs) in Vietnam must strictly comply with tax, labor, and periodic reporting obligations to avoid penalties and maintain legal standing. 

A – Taxes: 

  • Corporate Income Tax (CIT): 20% (15–17% incentives for SMEs from late 2025 if revenue < VND 50 billion); quarterly provisional payments (at least 80% of annual obligation); due by the 30th of the first month of the following quarter; annual declaration within 90 days after the fiscal year-end. 
  • Value Added Tax (VAT): 8–10% (reduced to 8% until 2026); monthly declaration (revenue > VND 50 billion/year) or quarterly declaration; due by the 20th of the following month or the end of the first month of the next quarter; retain invoices for deductions. 
  • Personal Income Tax (PIT): 5–35% (residents) or 20% (non-residents); withholding and declaration monthly/quarterly, aligned with VAT; annual employee declaration. 
  • Other fees (environmental protection, resource tax, land use): Usually annually or on an event basis, with changes required to be reported within 30 days.

B – Laws and Other Compliance: 

  • Labor Law 2019 (amended): Work permits for foreigners; quarterly labor reports; standard contracts; monthly social insurance contributions (pension, health, unemployment insurance). 
  • Intellectual Property: Registration and monitoring (annual review recommended). 
  • Financial Reporting: Annual audited financial statements for FDI, submitted with final CIT. 
  • Transfer Pricing: Local/master file prepared annually, submitted within 90 days after the fiscal year-end if thresholds are met. 

Compliance Checklist: 

Requirement  Details  Frequency  Deadline  Penalties if Violated 
VAT Declaration & Payment  Input/output, deductions (Form 01/GTGT or 04/GTGT)  Monthly (>50B VND) or quarterly  20th of next month or end of first month of next quarter  0.03%/day interest, disallowed deductions, audits 
PIT Withholding & Declaration  Employee withholding (Form 05/KK-TNCN)  Monthly/quarterly  20th or end of the first month of next quarter; annual within 90 days  Daily fines, criminal liability 
Provisional CIT Payment  Estimated profit-based  Quarterly  30th of the first month of next quarter  Interest if below 80% the annual obligation 
Social Insurance  Contributions and reporting  Monthly  Aligned with PIT monthly/quarterly  Late fees, hiring restrictions 
Labor Usage Report  Employee numbers and changes  Quarterly  End of the quarter  Administrative fines, suspension 
FCT Declaration  Payments to foreign contractors  Monthly or per payment  20th of the next month or 10 days after payment  Employer liability, heavy fines 
Transfer Pricing  Local/master file  Annually  90 days the after fiscal year-end  Audits, tax adjustments 
Audited Financial Statements  VAS-compliant with independent audit  Annually  With final CIT (90 days)  Mandatory audits, penalties for errors 

FDI companies should engage professional accounting services and monitor updates such as Decree 132/2025/ND-CP on CIT, ensuring electronic filing with digital signatures. 

8/ Frequently Asked Questions (FAQs) 

  • Can foreigners own 100% of a trading company in Vietnam? 

Yes, foreign investors can own up to 100% in most sectors, including import-export and distribution. Exceptions apply to restricted sectors such as pharmaceuticals, oil and gas, or printing, where ownership may be limited or may require a local partner. 

  • What is the minimum capital required? 

No fixed minimum capital exists for most trading companies. Charter capital must be reasonable to support operations. Authorities often recommend at least USD 10,000 to show financial capability and avoid delays. The exact amount depends on your business plan and scale. 

  • How long does it take to set up? 

Setting up a business in Vietnam as a foreigner typically takes 1–2 months, depending on the complexity and the province. The IRC usually takes 30–45 working days, the ERC follows in 7–14 days. Additional licenses and post-registration steps may extend the timeline. 

  • Do I need a local partner? 

For general trading (import, export, wholesale, and distribution), no local partner is needed—100% foreign ownership is allowed. In restricted or conditional sectors (e.g., multi-outlet retail, pharmaceuticals, and media), a local partner or joint venture may be required. 

  • How to start a business in Vietnam as a foreigner? 

Follow these key steps: obtain the Investment Registration Certificate (IRC), then the Enterprise Registration Certificate (ERC), secure trading or sector-specific licenses, open a corporate bank account, contribute charter capital, and complete tax registration. Using professional services like Vina TPT’s company setup service ensures accuracy and efficiency. 

Vina TPT – Your Trusted Partner for Foreign Businesses in Vietnam 

Vina TPT is one of Vietnam’s leading company formation consultancies, specializing in helping foreign investors to set up companies in Vietnam for trading, manufacturing, and services. With over 20 years of experience, Vina TPT has assisted hundreds of FDI companies from Europe, the US, Japan, Korea, and Singapore in successfully obtaining IRCs, ERC, and required licenses in minimal time. 

  • Multilingual Expert Team: Lawyers, accountants, and registration specialists fluent in English, Japanese, and more for seamless communication. 
  • Fast and Transparent Process: Commitment to completing the IRC in 30–45 working days and the ERC in 7–14 days, with a near-100% success rate. 
  • Full-Service Package: From company registration to capital advisory, bank account opening, tax filing, work permits, social insurance, and transfer pricing support. 
  • Competitive and Transparent Pricing: Clear quotes with no hidden fees, ideal for SMEs. 
  • Long-Term Post-Setup Support: Daily operational guidance and updates on the latest laws (including the 2025 Investment Law changes) to minimize risks and support sustainable growth. 

We go beyond simply setting up a company in Vietnam – we help you build a strong foundation for success. With our commitment to “Fast – Accurate – Cost-Effective” service, Vina TPT saves time, reduces legal risks, and lets you focus on business growth. Hundreds of satisfied clients trust Vina TPT – contact us today for a free consultation and a personalized quote tailored to your needs. 

BOOK A FREE CONSULTATION

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Legal News

Top 10 | Ideas for small business in Vietnam for Foreign Investors

Posted on by SEN

1. Overview of Business Opportunities for Foreigners

If you’re exploring ideas for small business in emerging markets, Vietnam stands out as one of the fastest-growing economies in Southeast Asia, backed by a young population, a dynamic workforce and rising consumer demand. Foreign investors can tap into numerous developing sectors.

The Vietnamese market is particularly attractive due to the growth of the middle class, new consumer habits and high demand for quality services. Large cities such as Hanoi, Ho Chi Minh City, Da Nang are ideal destinations to test small business models and implement innovative ideas.

2. Profitable Ideas for Small Business

Below are ideas for small business suitable for foreign investors in Vietnam, detailed implementation so that customers can evaluate the potential:

F&B (Food & Beverage):

  • Coffee shops, restaurants, milk tea stalls with creative concepts.
  • Delivery services, processing organic food, healthy food.
  • Business in foreign specialties or combining local culinary culture.

Education services:

  • Foreign language centers, skills training, teaching STEM or coding for children.
  • Online classes, edu-tech models combined with offline.

E-commerce:

  • Online retail, dropshipping, or specialized sales platforms.
  • Providing unique imported products, targeting middle-class customers.

Light Manufacturing:

  • Processing agricultural products, packaged foods, manufacturing handmade products.
  • Producing small consumer products, souvenirs or fashion accessories.

Support and logistics:

  • Transportation, warehousing, fulfillment for e-commerce.
  • Business consulting, marketing, or office rental services.

Tourism & Travel:

  • Boutique travel agencies, guided tours, eco-tourism, and adventure trips.
  • Services combining local culture, culinary experiences, and foreign-language support.

Health & Wellness:

  • Fitness studios, yoga centers, spas, wellness retreats.
  • Health coaching, organic/natural product shops, or dietary consultation services.

Tech & Digital Solutions

  • App or software development for small businesses, fintech solutions.
  • Digital marketing agencies, social media management, or website development.

Creative & Arts Services

  • Photography studios, interior design, handmade crafts, or art workshops.
  • Event planning, wedding services, or cultural experience workshops for foreigners.

Green & Sustainable Businesses

  • Eco-friendly products, recycling services, sustainable packaging, or zero-waste shops.
  • Solar energy solutions or small-scale environmental consulting for local businesses.

These ideas for small business are suitable for small and medium investment capital, flexible in implementation and can be tested in big cities or niche markets.

4. Key Considerations for Compliance and Operations

When planning to implement ideas for small business in Vietnam, foreign investors need to understand some basic factors about operations and legal compliance. Although you do not need to go into the details of the law, understanding these points will help avoid future risks and ensure the company operates smoothly.

4.1 Tax compliance and financial reporting

Every business in Vietnam must declare value-added tax (VAT), corporate income tax (CIT) and personal income tax (if it has employees). Preparing accounting books from the beginning will help businesses easily prepare monthly, quarterly and year-end financial reports, and avoid tax arrears or administrative fines.

4.2 Social insurance and employee benefits

If a business hires local workers, paying social insurance, health insurance and unemployment insurance is mandatory. This is an important factor to ensure employee benefits and compliance with Vietnamese labor laws.

4.3 Compliance with basic industry and legal regulations

Some industries, such as F&B, education or logistics, require specific business licenses or sub-licenses. A basic understanding of these requirements will help investors choose the right business model and avoid legal risks.

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4.4 Manage operations and administrative records

Preparing basic procedures such as registering for a tax code, opening a corporate bank account and keeping complete records will help businesses operate effectively right from the start.

In short, understanding the above notes helps investors plan in advance, minimize risks and focus on implementing business ideas, without having to go too deep into detailed regulations on laws and taxes.

5. How Vina TPT Supports Foreign Investors

Vina TPT provides comprehensive services for foreign investors, including:

  • Company setup & registration at state agencies and corporate bank account opening.
  • Accounting & tax compliance: bookkeeping, financial reports, tax registration, declarations, and handling tax inquiries.
  • Payroll & social insurance: payroll calculation, insurance registration, and labor report submissions.
  • Work permit & visa support for foreign employees.
  • Ongoing legal compliance to ensure smooth operations.

With more than 20 years of experience supporting startups and FDI enterprises in Vietnam, Vina TPT commits to providing fast, transparent and legally compliant services, helping investors feel secure from the company setup step to initial operation, optimizing time and costs, while ensuring the business operates effectively and safely.

Explore business opportunities in Vietnam and start your investment journey with Vina TPT

BOOK A FREE CONSULTATION

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Company Formation

Open Business Bank Account in Vietnam for Foreign-Invested Enterprises (FDI)

Posted on by SEN

 

How to Open Business Bank Account in Vietnam for FDI: Step-by-Step Guide

Are you a foreign investor setting up an FDI company in Vietnam? Opening a business bank account is not just the first essential step—it’s a legal requirement to manage investment capital and daily operations. This comprehensive 2025 guide walks you through every stage, from document prep to account activation, based on the Investment Law 2020 and Enterprise Law 2020. Let’s get your open best business bank account for LLC or corporation up and running—fast and compliant. 

1. Why Foreign Investors Need to Open Business Bank Account in Vietnam 

Opening business bank account in Vietnam is critical for FDI compliance and financial transparency. The State Bank of Vietnam (SBV) mandates that all FDI entities maintain dedicated accounts to contribute charter capital and conduct international transactions. This protects assets and enables legal profit repatriation. Here’s why it matters. 

Strategic Importance 

  • Efficient foreign exchange management: Seamlessly transfer funds globally and access offshore loans.
  • Financial transparency: Track expenses, taxes, and annual audits with ease.
  • Build credibility: A dedicated account boosts trust with partners and Vietnamese authorities.
  • Flexible profit repatriation: Move earnings abroad after tax obligations—via the right account.

The Two Essential Accounts 

FDI companies must open two core accounts:  

  • Direct Investment Capital Account (DICA) – for capital contributions.
  • Current Account – for daily operations.

DICA is opened first and is non-negotiable for receiving registered capital. 

2. Step-by-Step Guide to Open Business Bank Account 

The process typically takes 1 week, depending on the bank and document readiness. We break it into four logical phases: Preparation, Bank Selection, Submission, and Activation—all aligned with the Banking Law 2010 and 2025 forex rules. 

Phase 1: Pre-Registration Requirements 

Complete business registration before approaching any bank. 

Legal Entity Establishment 

  • Register with the Department of Planning and Investment (DPI) to obtain:
  • Investment Registration Certificate (IRC) – for the investment project.
  • Enterprise Registration Certificate (ERC) – for company setup.
  • Secure a tax code and enterprise code.
  • Prepare valid passport and visa for the legal representative.

Capital Commitment 

The capital amount stated in the IRC must be fully contributed within 90 days of ERC issuance. The bank opens a DICA to monitor inflows—ensuring SBV compliance. 

Example: If registered capital is $100,000, the full amount must enter the DICA before the deadline. 

Phase 2: Choosing Your Bank Wisely 

Choosing the best business bank account impacts fees, speed, and English support. Prioritize institutions with proven FDI experience.

Key Selection Criteria 

  • FDI expertise: Banks that have processed thousands of DICA openings.
  • Low forex fees: Competitive VND/USD conversion rates and free large transfers.
  • English digital banking: 24/7 mobile apps for international wires.
  • Branch network: Presence in Ho Chi Minh City, Hanoi, and Da Nang.

Top Recommendations (2025) 

  • HSBC & Standard Chartered: Best for global FDI—fast forex, full English support.
  • Vietcombank & BIDV: State-owned, low fees, strong local DICA experience.

Tip: Consider ACB, UOB, or VietinBank for additional best business bank account options. 

Phase 3: Documentation and Submission 

This is the core phase. All documents must be notarized or translated into Vietnamese if required. 

Mandatory Document Checklist

Document  Requirement 
Investment Registration Certificate (IRC)  Notarized copy 
Enterprise Registration Certificate (ERC)  Notarized copy 
Account Opening Resolution (Board-approved)  Original, signed by legal rep 
Passport & visa of legal representative  Notarized copy 
Proof of company address (lease agreement)  Notarized copy 
Chief Accountant / Finance Manager details  Original (if applicable) 
Specimen signature & company seal  Original 

Note: Requirements follow SBV guidelines and may vary slightly by bank. 

Power of Attorney (POA) 

If the legal representative cannot sign in person, a notarized POA (at a Vietnamese notary or consulate) is required. It must explicitly authorize account opening and management. 

Phase 4: Account Activation and Initial Deposit 

Banks review applications in 3–7 days. Once approved: 

  • Transfer capital from abroad into the DICA.  
  • Activate online banking and access rights.  
  • Set up transaction alerts for forex monitoring. 

Capital Contribution Deadline 

Per the Investment Law, full capital must arrive within 90 days of ERC issuance. Late contributions risk VND 10–50 million fines or license revocation. Banks report violations to the SBV.

3. Understanding the Two Mandatory Account Types for FDI 

FDI firms must maintain separate accounts under SBV forex rules. This ensures transparency and prevents misuse of investment capital.

3.1 Direct Investment Capital Account (DICA) 

A dedicated account for direct investment, opened in the currency registered in the IRC (usually USD or VND).

Purpose and Permitted Transactions 

  • Receive capital contributions from foreign investors.  
  • Accept international loans.  
  • Repatriate profits and dividends (post-tax).  
  • Repay foreign debt. 

Strict Compliance Rules 

Every DICA transaction requires supporting documents (invoices, loan agreements). Violations may trigger account freezes under Decree 88/2019/ND-CP. 

3.2 Current Account (Operating Account) 

Opened after DICA and linked to it—for daily business spending. 

Purpose and Permitted Transactions 

  • Pay salaries and VAT.  
  • Purchase local goods and services.  
  • Receive payments from Vietnamese clients.  
  • Make VND domestic transfers. 

Interplay Between Accounts 

Funds flow one-way only: DICA → Current Account. Reverse transfers are prohibited to protect investment capital. 

Bonus: You may open additional accounts (e.g., payroll, project, escrow, or multi-currency) based on operational needs. 

4. Common Challenges and Expert Solutions 

Based on 2025 FDI consulting experience, here are frequent hurdles—and how to solve them. 

Challenge 1: Foreign Currency Management 

Risk: VND/USD rate fluctuations erode profits. 

Solution: Open a parallel foreign currency account with DICA. Use HSBC’s hedging tools to lock rates. Monitor daily SBV conversion limits. 

Challenge 2: KYC/AML Delays 

Risk: Incomplete Ultimate Beneficial Owner (UBO) data extends review by 2–4 weeks. 

Solution: Submit UBO passports and financial history early. 

Challenge 3: Legal Representative Changes 

Risk: Delays in updating DPI and bank records. 

Solution: File updated resolution + new POA. Takes 5–10 days. 

Challenge 4: Profit Repatriation 

Risk: Complex documentation delays transfers. 

Solution: Prepare audited financials, tax clearance from the Tax Department, and route via DICA. Processing: 15–30 days (Circular 19/2014/TT-NHNN). 

5. Value-Added: Comparison of Top Banks for FDI (2025) 

Bank  DICA Opening Fee  English Support  Processing Time  FDI Experience 
HSBC  Free  High  3–5 days  Excellent (Global) 
Standard Chartered  Low  High  4–7 days  Strong 
Vietcombank  Free  Moderate  5–10 days  High (Local) 
BIDV  Low  Moderate  7–14 days  Good 

6. Simplify the Process with Vina TPT Accounting Services 

As a leading provider of accounting, tax, and FDI consulting in Vietnam, Vina TPT Accounting Services has supported over 200 foreign companies in compliant financial setup—including opening business bank accounts, VAT/PIT/CIT reporting, and multinational HR. 

Our all-in-one support includes: 

  • Bank selection advisory: Match HSBC, Standard Chartered, or Vietcombank to your capital and forex needs.
  • Full document preparation & verification: IRC, ERC, POA, signatures—100% notarized and compliant.
  • Proxy submission & KYC follow-up: Reduce approval time to 3–5 business days.
  • Capital contribution guidance: Ensure 90-day compliance and avoid penalties.

Special: Open DICA + Current Account simultaneously with instant English online banking.

Contact Vina TPT now for consultation on opening a business bank account

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