Conditions on establishment of 100% foreign invested enterprise (fie) for production

​I. Legal grounds

• Cam kết WTO và các Điều ước quốc tế về đầu tư mà Việt Nam tham gia ký kết hoặc gia nhập;
• Commitment in WTO and treaties which Vietnam is the member;
• Luật đầu tư 2020;
• Law on Investment 2020;
• Luật thương mại năm 2005.
• Law on Commerce 2005.

II. Conditions on investment in production for foreign investors

Field of production shall not be in the List of Conditional Investment and Business Fields in accordance with List provided in Law on Investment 2020. According to that List, there is no condition on rate of capital ownership of foreign investor and form of investment.

However, to produce in Vietnam, it is necessary for foreign investors to meet the following conditions:

Location of the project: Due to influence on environment, foreign investors need to meet conditions on prevention from and fight against fire, commitment related to environment, order and security. Therefore, the location shall be in the master plan of the authority which allows the production: Industrial zones, High-tech zones, Production zones and so on.

Before entering into rental location contract, it is important for foreign investors to scrutinize whether to produce their goods or not. Subsequently, foreign investors need to scrutinize dossiers of that location and define whether it is legal or not.

Products of FIE: It is necessary to scrutinize whether its product is allowed to produce in Vietnam or not.

Products which are not granted to produce in accordance with ASEAN Agreement on Comprehensive investment: Firecrackers, including fireworks; outdoor lights; fishery nets; dynamites; publication: all articles; printing industry, including: Books (those for the blind included), images, maps, commercial panels, instructional books, calendars; coin production, valuable documents, fake money, financial invoices, checks and so on; newspapers, periodicals, regular articles, fake stamps, diplomas, ID cards, passports and so on; cigarettes and cigars; alcoholic and gas beverage; oil and NPK fertilizer; glasses for construction; producing bricks from clay; producing equipment for brick, tile and cement kiln production; D6-D32 mm steel pipes for construction and D15-D114 m connecting steel pipes; gilded and colored steel; bulbs and fluorescence; sugar cane and so on.

Notes about investment capital: the minimum capital is not required to establish FIE. However, the investor shall have an appropriate capital to the project.

The abovementioned conditions and notes shall be paid attention by foreign investors and adhere to. Should you have any question, please do not hesitate to contact us via online consultation hotline: 0943891828 or via email, wechat and zalo.

We are willing to cooperate with You!

Sincerely./.