Business Knowledge, Finance & Accounting Knowledge, Lasted News, Legal News

FDI Company Setup in Vietnam: Business License & Complete 2026 Guide

Posted on 30/12/202530/12/2025 by ASS

Why Setting up Company in Vietnam is the Strategic Choice for 2026?

The year 2026 marks a pivotal turning point for foreign investors in Vietnam. With significant reforms in the Law on Investment and a roadmap to reduce conditional business lines, the process for setting up a company in Vietnam is becoming more transparent and streamlined than ever.

However, to operate legally in specialized sectors such as retail, distribution, or logistics, investors must follow a structured path from obtaining an IRC and ERC to securing a specific business license.

1. Why Foreign Investors Need a Clear Roadmap in 2026

Starting a business in Vietnam as a foreigner offers immense potential, but understanding the 2026 regulatory landscape is crucial to avoiding delays or rejected applications.

a. FDI Opportunities in 2026

Vietnam maintains its position as Southeast Asia’s “global factory” based on four key pillars:

Extensive FTA Network: Leverage tariff incentives from the CPTPP, EVFTA, and RCEP.
New Incentive Policies: Strong focus on high-tech projects, circular economy, and renewable energy.
Flexible Ownership Structures: 100% foreign ownership is permitted in most sectors, including manufacturing, IT, consulting, and trading.
Digitalized Procedures: Significant reduction in waiting times through the National Business Registration Portal.

b. When is a Business License (Trading License) Mandatory?

While many sectors are open, a Business License (Trading License or Retail Distribution License) is still mandatory for foreign investors in “conditional” sectors under WTO commitments and Vietnamese Law.

Even with eased regulations, a separate Business License is required after company formation for:

Retail Sales: Directly providing goods to end consumers.
Distribution & Import: Applied to restricted or specialized commodity groups.
Specialized Services: Logistics, education, healthcare, and F&B.
Important Note: By July 1, 2026, sectors like accounting and insurance brokerage will see further liberalization. However, for Retail & Distribution, investors must still seek approval from the Ministry/Department of Industry and Trade.

c. Distinguishing IRC vs. ERC vs. Business License

Understanding these three acronyms is vital for any foreigner setting up a company in Vietnam:

Permit Type	Issuing Authority	Primary Role
IRC (Investment Registration Certificate)	Department of Planning and Investment (DPI)	Approves the investment project (capital, objectives, location).
ERC (Enterprise Registration Certificate)	Business Registration Office	Creates the legal entity and issues the Tax ID.
Business License	Relevant Ministry or Department	Grants permission to operate in conditional sectors (Retail, etc.).

The Standard Sequence: IRC (Project Approval) → ERC (Company Formation) → Business License (For specific sectors).

2. 5-Step Process for Setting Up Company in Vietnam in 2026

The average timeline for completion ranges from 1 to 2 months, depending on the complexity of your business lines.

Step 1: Choose a Legal Structure & Check Ownership Limits

The most common choice is a Limited Liability Company (LLC) due to its flexibility and limited liability protection. Foreigners must verify if their specific sector requires a Joint Venture (JV) with a Vietnamese partner.

Step 2: Obtain the Investment Registration Certificate (IRC)

Investors submit the application to the DPI. Key documents include:

Detailed Investment Project Proposal.
Proof of Financial Capacity (Bank statements or audited reports).
Office Lease Agreement or Memorandum of Understanding (MOU).
Timeline: 15 – 35 working days.

Step 3: Obtain the Enterprise Registration Certificate (ERC)

Once the IRC is issued, the ERC application is typically processed within 3 – 7 working days. This step officially grants your business its legal status.

Step 4: Post-Registration Procedures (Operational Compliance)

Obtaining the ERC is only the beginning. Within 90 days, investors must fulfill these mandatory obligations:

Open a Direct Investment Capital Account (DICA): This is the most critical step. All capital contributions, profit repatriations, and share transfers must flow through this account.
Capital Contribution: Ensure the total committed capital is transferred into the DICA within 90 days of ERC issuance.
Online Investment Reporting: Businesses must report project progress quarterly and annually on the National Investment Information System. Missing these deadlines can lead to heavy administrative fines.
Initial Tax & Accounting Setup: Register digital signatures, set up e-invoice templates, and pay Business License Tax (License Fees). Appointing a Chief Accountant or an outsourced accounting representative is a legal requirement for signing financial statements.

Step 5: Specialized Business License (If applicable)

For retail and distribution entities, authorities will assess the application based on local planning and socio-economic impact. Note the Economic Needs Test (ENT) requirement if you plan to open a second retail outlet or more.

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3. Required Documents & Checklist

All foreign documents must be Consularly Legalized, translated into Vietnamese, and notarized.

Individual Investors: Notarized passport + Bank balance confirmation.
Corporate Investors: Parent company’s Certificate of Incorporation + Audited financial statements (last 2 years) + Resolution appointing the authorized representative.
Project Documents: Detailed Business Plan and proof of right to use the business location.

4. Vina TPT: Your Trusted Partner for FDI Success in Vietnam

Establishing a legal entity is just the start. To thrive in the Vietnamese market, businesses need a solid foundation in Accounting, Tax, and HR from day one.

Vina TPT is proud to be a strategic partner, helping foreign investors remove language barriers and navigate local legal complexities:

Expert Consulting: From initial setup to tax structure optimization. We keep you updated on the latest regulations, including Global Minimum Tax and 2026 tax incentives.
Payroll & HR Management: We handle labor contracts, Social Health & Unemployment Insurance (SHUI), and Personal Income Tax (PIT) finalization for both expats and locals, ensuring absolute confidentiality.
Lifecycle Partnership: With over 20 years of experience, Vina TPT provides an “All-in-one” ecosystem. You focus on growth; we handle the administration.
No Language Barrier: Our trilingual team (English – Japanese – Vietnamese) ensures transparent communication and seamless management reporting.

Optimize your resources and minimize legal risks with Vina TPT. Contact us today for a 1-on-1 specialized consultation for your 2026 project.

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Accounting & Tax, Lasted News

When to Switch Accounting Services in Vietnam: Key Indicators for Businesses

Posted on 08/12/202517/04/2026 by ASS

1. Key Indicators Bookkeeping Service Should Improve

Businesses should consider improving their accounting services when they notice the following signs:

Inaccurate or opaque reporting, making it difficult to assess the financial situation.
Delays in preparing monthly/quarterly/annual reports, affecting business decisions and legal compliance.
Service costs are too high compared to the quality and scope of service.
Lack of financial strategy consulting support, preventing businesses from optimizing cash flow or budget.
Expanding business but current services are not meeting the increased volume of books and reports.

These signs are signals to consider finding a more reliable accounting partner.

2. Assessing Your Business Requirements

To decide whether to switch to a new bookkeeping or accounting service, businesses need to conduct a comprehensive assessment of their current needs. A correct assessment will help you choose the right type of service, the right level of support and optimize costs.

2.1 Assess the volume of documents and the complexity of transactions

Businesses need to answer the following questions:

Is the number of input and output invoices increasing each month?
Are there complex transactions such as: import, export, transfer pricing, authorization, cross-border service contracts?
Do the transactions require cost allocation, depreciation, asset capitalization, and exchange rate difference handling?
If the volume of documents is increasing or the transactions are complicated, businesses need an accounting unit with in-depth expertise, instead of just simple bookkeeping.

2.2 Assessing Tax Compliance

Vietnam has many taxes with constantly updated regulations: VAT, CIT, PIT, FCT, electronic invoices…

Enterprises need to consider:

Are tax reports submitted on time?
Have you ever been fined for incorrect declaration or late submission?
Does the current unit warn the business of new regulations or tax risks?
Does it ensure complete documentation when the tax authority inspects?

If the answer to any question is “No”, the business should consider changing to a unit with stronger tax consulting capacity.

REVIEW YOUR CURRENT SYSTEM

2.3 Reporting frequency and transparency level

Each business has different reporting needs:

Internal management reports by month/quarter
Reports as required by the parent company (e.g., for Japanese, Korean, Singaporean businesses)
Reports analyzing costs, cash flow, and profits by segment

Businesses need to evaluate whether the current unit:

Does it provide reports on time and in the required format?
Does it explain the data clearly, or does it just send files without consulting?
Does it support customizing reports according to management needs?
If it does not meet these requirements, the business needs a more professional partner.

2.4 Ability to accompany the business when it expands

You need to consider:

Does the business plan to open branches, increase capital, or increase staff size in the coming year?
Can the current accounting unit meet the increased workload?
Do they have experience in handling FDI or large-scale enterprise records?

A small or unsystematic unit often has difficulty keeping up with the growth rate of the enterprise.

2.5 Evaluate the appropriate bookkeeping service model

When assessing the needs, you also need to determine the ideal model:

Fully outsource?
Specialized service?
A combination of internal + outsourced bookkeeping?

Part 3 below will have a comparison table to help you decide exactly which model is most suitable.

3. Comparing Bookkeeping and Accounting Options

Below is a comparison table of popular options: full outsourcing, hiring specialized services, and building an internal accounting team.

Evaluation Criteria	Outsourced Bookkeeping / Full Accounting Outsourcing	Specialized Accounting Services (Tax, Review, Financial Reporting)	Internal Accounting Team
Operating cost	Low, fixed monthly fee	Medium, depends on the specialized service scope	High, includes salary, social insurance, training, and management cost
Professional expertise	High, especially with reputable firms such as Vina TPT	Very high, suitable for complex financial and tax matters	Varies by individual capability, risk of dependency
Tax advisory capability	Good, with regular regulation updates	Excellent, strong in tax planning and risk management	Limited, as internal staff have less exposure to diverse industries
Staff stability	Stable due to dedicated service teams	Very stable	Unstable, employees may resign and require rehiring and retraining
Best suited for	SMEs, FDI companies, fast growing businesses	Companies needing deep tax expertise, reviews, or complex reporting	Large enterprises that require strong internal control
Speed of implementation	Fast, can start immediately	Depends on scope or project complexity	Slow, requires recruitment and training
Data control	Good when handover processes are well managed	Very strong and detailed	Good but depends heavily on internal personnel
Legal compliance risk	Low due to expert handling	Very low due to constant regulatory updates	Higher if the internal team is not updated on tax regulations
Scalability	Flexible based on business growth	Flexible based on project needs	Limited, scaling requires hiring additional staff
Best case to choose this option	When businesses want cost savings and on time reports	When advanced tax, audit support, or financial management expertise is required	When the company is large and needs deep internal control

4. Key Benefits of Switching to a Reliable Bookkeeping Service Partner

When switching to a better service provider, businesses will receive:

Significant cost savings: No need to recruit, train, or maintain an internal accounting team.
Improve accuracy and transparency: Bookkeeping is standardized, consistent, and in compliance with regulations.
Ensure compliance with the law: Tax reporting and financial reporting are done on time and in compliance with regulations, avoiding the risk of being fined.
Optimize financial processes: A scientifically organized accounting system supports better decision making for the board of directors.

5. Steps to Seamlessly Transition Bookkeeping Service

Transitioning to a new accounting unit will go smoothly if the business prepares properly. Here are simple but effective steps to reduce risks and avoid reporting disruptions:

Step 1: Assess the current state of bookkeeping services

Businesses need to review the quality of reports, progress of declaration submission, accuracy and coordination ability of the current accounting unit. From there, accurately determine the reason for the transition and specific requirements for the new unit.

Step 2: Prepare documents & data for handover

Including financial reports, books, tax declarations, labor contracts, software accounting data, and related documents. Arranging complete documents will help the new unit to receive quickly and not miss tax obligations.

Step 3: Make a detailed transition plan

Agree with the new accounting unit on the scope of work, start time, responsibilities of each party and method of receiving data. In this step, the business also determines the closing time to avoid duplication.

Step 4: Handover of books & check for completeness

All data is handed over according to the agreed list. The new unit will check for completeness, compare data and detect problems (if any) before official operation.

Step 5: Trial operation & adjustment

In the first 1-2 cycles (month or quarter), the new accounting unit will re-check the accounting, ensuring that tax reports and management reports are prepared correctly. If there are any discrepancies from the old unit, the two parties will immediately adjust to avoid tax risks.

Step 6: Officially switch to stable operation

After testing and comparison, the business can operate stably with the new accounting provider, ensuring a smooth, transparent process and in accordance with management requirements.

6. Why Vina TPT Is the Preferred Choice for Businesses

Vina TPT is considered the best bookkeeping services in Vietnam with many outstanding advantages:

Comprehensive and specialized services: From bookkeeping services, accounting services to complex tax consulting for FDI enterprises.

Ability to receive books at any time: Whether the enterprise transfers accounting services at the beginning, middle or end of the year, Vina TPT still ensures:

Review old data
Adjust errors
Complete unfinished records
Continue to record books for the next phase

All are done quickly – transparently – in compliance with the law.

Smooth transition process: Vina TPT has experience in handling interrupted records, incomplete books, or delayed tax reports.

Highly specialized team: Accounting – tax experts with many years of experience, knowledgeable about FDI enterprises and domestic enterprises.

BOOK A FREE CONSULTATION

Accounting & Tax, Labor & Insurance Knowledge, Lasted News

Best Bookkeeping Services for Startups in Vietnam

Posted on 05/12/202517/04/2026 by ASS

Best-Bookeeping-Services-for-Startups-in-Vietnam-Vina-TPT

1. Common Accounting Challenges Faced by Startups

Bookkeeping services are essential because startups in Vietnam often face many difficulties in accounting and financial management. First is the limited human resources, as many new businesses only have a few employees or do not have a dedicated accounting department.

Second is the high cost of hiring full-time staff or hiring an unsuitable accounting service company. Startups often have to consider limited budgets, while maintaining an internal team is expensive in terms of salary, benefits and training.

Finally, many startups lack experience in financial management and tax compliance. Errors in VAT, CIT, PIT declarations or social insurance payments can lead to legal risks, tax arrears or administrative fines. This is why many startups choose outsourced accounting services to ensure accurate financial operations and compliance with Vietnamese law.

SOLVE YOUR ACCOUNTING CHALLENGES

2. Core Accounting Services for Startups

Startups need essential accounting services to operate effectively and remain compliant with the law. Key services include:

Bookkeeping:

- Record all transactions, invoices, and documents according to Vietnamese accounting standards. Classify and organize financial data, making it easy to track cash flow.

Monthly & Year-End Reporting:

- Prepare monthly/quarterly financial reports to evaluate business performance.
- Prepare year-end reports to meet audit and tax requirements.

Tax Compliance:

Businesses must ensure full and timely compliance with Vietnam’s tax regulations, including Value Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT), and Foreign Contractor Tax (FCT). Key responsibilities include:

Preparing accurate tax reports in accordance with current tax laws.
Submitting monthly, quarterly, and annual tax declarations to avoid penalties or late-filing fines.
Maintaining clear, consistent accounting records to support all reported figures.
Providing explanations and supporting documentation to tax authorities when required, including clarifying discrepancies or responding to official notices.
Handling tax audits and inspections professionally to ensure consistency between records and declarations.

Ensuring compliance with all tax obligations not only minimizes legal risks but also builds long-term credibility with regulatory authorities.

Payroll & Insurance Management:

This service ensures accurate and compliant management of employee compensation and social insurance obligations. Key responsibilities include:

Preparing payroll and calculating Personal Income Tax (PIT) for all employees.
Paying social insurance, health insurance, and unemployment insurance contributions in accordance with Vietnamese law.
Registering new employees for social insurance and processing all related insurance documents.
Submitting labor reports and mandatory filings to relevant authorities as required by labor regulations.
Ensuring compliance with labor laws and personal income tax obligations for all employees.

Effective payroll and insurance management helps businesses minimize legal risks, maintain employee satisfaction, and ensure smooth operations in accordance with Vietnamese regulations.

Financial Consulting:

Cash flow analysis, cost optimization and budget planning.
Support startups to make accurate and timely financial decisions.

These services help startups operate transparently financially, save time and focus on product and market development instead of struggling with complicated accounting.

4. How Outsourced Bookkeeping Ensures Accuracy

Vina TPT’s outsourced accounting service helps startups standardize all books and financial reports in accordance with Vietnamese accounting standards. All transactions, invoices and documents are systematically recorded, classified and checked, helping to ensure that all financial data is accurate and transparent. This process not only minimizes human errors but also creates clear and complete records, serving monthly, quarterly and year-end reporting. Thanks to that, startups can grasp cash flow, manage costs and evaluate business performance in a timely manner, thereby making more accurate financial decisions.

Moreover, Vina TPT also ensures full compliance with legal regulations on tax and financial reporting. Each report is cross-checked, compared with original documents and accurately calculates taxes payable, limiting the risk of being overcharged or administratively fined. In addition, the service also provides transparent, easy-to-read reports, helping investors, banks or partners clearly understand the financial situation of startups. Thanks to that, businesses not only feel secure about accuracy but also save operating time, focus on product and market development, and build credibility with business partners.

5. Why Vina TPT Is the Go-To Accounting Firm for Startups

Vina TPT Accounting Service is an ideal partner for startups in Vietnam thanks to:

Comprehensive services: bookkeeping, monthly/quarterly/annual reports, tax declarations, payroll management, financial consulting.
High expertise for startups: understanding the specifics of limited budgets, simple but legal processes.
Transparent processes: clear reports, easy to check and manage cash flow.
Reduced operational load: startups do not have to worry about accounting staff or legal errors, focus on business development.
Language advantage : services are available in both Vietnamese, English & Japanese, facilitating communication for foreign founders and easing compliance with local regulations.

Vina TPT helps startups operate finances effectively, comply with the law and develop sustainably.

BOOK A FREE CONSULTATION

Accounting & Tax, Business Knowledge

Trading Companies: Streamlined HCM Bookkeeping Services

Posted on 24/11/202528/11/2025 by ASS

Bookkeeping services for trading companies in Ho Chi Minh City by Vina TPT

1. The Complexity of Bookkeeping in HCM’s Trading Sector

Bookkeeping services play a crucial role in helping trading companies control their financial data accurately. Trading companies in Ho Chi Minh City often have to manage many different types of transactions from import, export to domestic and online retail. Each transaction generates invoices, documents and requires timely tax declaration according to the regulations of the Vietnamese tax authorities.

The process of declaring VAT, CIT and import-export tax is constantly changing, making it difficult for businesses to update, calculate and store documents correctly. In addition, comparing invoices between branches or with foreign suppliers increases the possibility of errors if the business does not have a systematic accounting system.

If processed manually, businesses will spend a lot of time, easily make mistakes and fall into a situation of late tax payment, lack of valid documents or incomplete declaration, leading to administrative fines and affecting cash flow.

2. Challenges Small Trading Companies Face in Daily Accounting

Small trading companies often face common problems such as managing paper documents, reconciling invoices, calculating VAT, CIT and import taxes. Consolidating financial statements from multiple branches or separate business units is also difficult, especially when data is not standardized.

Many businesses lack professional accounting staff and have to rely on people who are not experienced in handling complex operations. This leads to the risk of declaring incorrect tax figures, not submitting reports on time or having problems in auditing. Common errors can be incorrect invoices, mismatching import documents with tax declarations, or missing deductible expenses.

3. Outsourced Bookkeeping as a Solution for Efficiency

Hiring outsourced bookkeeping services is an effective solution to help trading companies save on personnel costs, reduce the risk of errors and increase productivity. Vina TPT provides a complete service from collecting documents, entering data, preparing periodic reports to checking data, ensuring all figures are accurate and in accordance with Vietnamese tax laws.

With a team of experts who understand the regulations for trading businesses, Vina TPT can handle complex operations such as calculating VAT for imported goods, calculating corporate income tax, comparing invoices between branches and standardizing data to easily consolidate reports. This helps businesses reduce management pressure, save time and focus on business development.

BOOST YOUR BUSINESS WITH OUTSOURCED BOOKKEEPING

4. Ensuring Accuracy and Compliance Through Streamlined Processes

Vina TPT applies standardized accounting processes, ensuring accurate and audit-ready data, while complying with Vietnamese laws. This system helps track cash flow, manage costs and control invoices effectively. All VAT, CIT and financial reports are prepared and thoroughly checked before submitting to the tax authorities, minimizing the risk of fines and errors.

In addition, applying an online system allows businesses to track documents and reports anytime, anywhere, increasing transparency and internal control. Businesses using professional services like Vina TPT can confidently expand operations and develop markets without worrying about compliance.

5. Tailored Bookkeeping Solutions by Vina TPT for Trading Companies

Vina TPT provides accounting and bookkeeping services customized to the needs of each trading company. Services include:

Preparing and managing complete accounting books
Preparing periodic financial reports and VAT, CIT, and import tax reports
Auditing support and preparing audit-ready documents
Setting up an online document management system, allowing businesses to track all transactions, minimizing the risk of errors

Vina TPT’s team of experts has many years of experience in bookkeeping in the trading field in Ho Chi Minh City, understanding the complex operations and legal requirements of tax authorities. Thanks to that, businesses not only save costs and time but also ensure compliance with the law, accurate and transparent data.

Ready to take control of your bookkeeping with confidence? Contact Vina TPT today for a complete outsourced bookkeeping service tailored to trading companies in Vietnam.

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