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Establishing representative office in Vietnam is an ideal option for many foreign companies seeking to explore the market, promote trade, and establish an initial legal presence without making a full investment like setting up an FDI company. Although not permitted to conduct direct business, a representative office still offers significant legal and commercial advantages.
Benefits of opening a representative office
One of the greatest advantages is the ability to establish a legal presence in Vietnam without going through complex investment procedures. A representative office can perform trade promotion, market research, monitor contracts signed with Vietnamese partners, and maintain direct communication with local stakeholders.
In addition, it serves as a bridge between the parent company abroad and the Vietnamese market, helping build brand recognition, find potential partners, and enhance credibility with local clients. Operating costs for a representative office are also significantly lower than those of a foreign-invested enterprise.
Legal procedures for opening a representative office
Foreign companies must have been legally operating in their home country for at least one year to be eligible for establishing representative office in Vietnam. The application dossier includes: a request form, a notarized copy of the company’s business registration certificate, the latest audited financial statement, a decision appointing the chief representative, and a lease agreement for the office location in Vietnam.
Applications are submitted to the Department of Industry and Trade in the city or province where the office will be located. The licensing process usually takes 7–10 working days if the documents are complete. Once licensed, the representative office must register its seal, tax code, and notify the local labor authority of its operations.
Operational notes for representative offices
Representative offices are not permitted to generate revenue from business activities in Vietnam. All expenses and transactions must be transparent, aligned with the representative function, and regularly reported to the competent authorities. Violations may result in administrative penalties or license revocation.
Furthermore, the foreign company must ensure that the chief representative is competent, familiar with Vietnamese laws such as the Vietnam law firm ASL LAW, and clearly empowered to manage local affairs. Adhering to proper procedures and reporting obligations of representative office establishment in Vietnam helps ensure legal and efficient operations.
** Other article: You can also find the process of How to Set up A Foreign Company in Vietnam here.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for doing business in Vietnam. If you need any advice, please contact us for further information or collaboration.
