1. Vietnam’s Growing Appeal to Foreign Investors
Vietnam continues to be a top destination for foreign investment, driven by strong GDP growth, a young and dynamic workforce, and strategic access to key Asian markets. As interest increases, one of the most common questions asked is:
Can foreign investors own 100% of a business in Vietnam?
The answer is yes, but it depends on the industry.
2. 100% Foreign Ownership: What’s Allowed in 2025?
Under the Law on Investment (amended 2020, effective from 2021), foreign investors can establish Wholly Foreign-Owned Enterprises (WFOEs) in many sectors without needing a local partner.
Sectors that allow full foreign ownership include:
- Information technology (IT) and software development
- Import-export businesses
- E-commerce and digital platforms
- Industrial manufacturing and processing
- Professional services (consulting, business management, marketing)
These sectors offer simplified registration processes, no local capital requirement, and various incentives depending on the investment zone and size.
3. Restricted or Conditional Sectors
While Vietnam encourages foreign investment, some industries are subject to ownership restrictions, licensing, or require Vietnamese joint ventures. These industries are considered sensitive or critical to national security.
Common restricted or conditional sectors:
- Logistics and transportation
- Education and training
- Media, advertising, and broadcasting
- Banking, insurance, and finance
- Telecommunications
- Security and defense industries
In these sectors, foreign capital may be capped (e.g., 49%, 65%) or subject to special permits and joint venture requirements. Compliance with WTO and FTAs (Free Trade Agreements) may also apply.
4. Legal Risks of Non-Compliance
Setting up a business in a restricted sector without understanding the regulations can lead to:
- Rejection of your investment registration certificate
- Delays in licensing
- Forced restructuring of your business ownership
- Legal penalties or license revocation
Pro tip: Choose the right business activity and get proper legal guidance before proceeding.
5. How to Legally Set Up a Foreign-Owned Business in Vietnam
Navigating Vietnam’s business laws can be complex. To avoid costly delays and legal issues, foreign investors should work with local experts who understand:
- Market feasibility and legal eligibility
- Business classification and investment licensing
- Tax registration and labor compliance
- International treaty alignment
At Green NRJ, we provide end-to-end services for foreign investors including:
- Market research and legal assessments
- Company structure advice
- Drafting investment documents
- Application and license processing
6. Need Help Setting Up a Foreign-Owned Company in Vietnam?
Whether you’re looking to open a trading company, start an IT business, or launch a consulting firm in Vietnam, we can help.
Green NRJ specializes in helping foreign investors:
- Own 100% of their Vietnam-based business
- Navigate legal procedures smoothly
- Comply with both Vietnamese law and international agreements
📩 Contact us today for a free consultation and take the first step toward building your business in Vietnam with confidence.
