Vietnam is recognized as a highly open destination for foreign investment, attracting international companies looking to expand their presence. If your business is considering company formation through a branch office in Vietnam, our local incorporation specialists are ready to provide comprehensive, step-by-step support. With deep expertise in foreign investment procedures, we guide you on how to open a branch in Vietnam—ensuring legal compliance and efficient market entry.
💡 Quick Facts
| Applicable legislation: |
Home country law |
| Best Used For: |
Banking, finance |
| Minimum capital: |
None |
| Setup timeline: |
Approx. 12 weeks |
| Management: |
Local |
| Legal representative required: |
Yes |
| Local bank account: |
Yes |
| Parent company link: |
Fully dependent |
| Parent liability: |
Full liability for the branch office’s obligations |
| Corporate tax rate: |
20% on profits earned in Vietnam |
| Local hiring: |
Allowed |
| Branch definition: |
A branch office in a foreign country means that a company has established a physical presence in that country to conduct business activities |
| Business licenses requirement: |
Mandatory |
| Incentives: |
Preferential tax rates, tax holidays, land rental exemption policy |
| Company name: |
Unique, must follow Vietnam’s regulations |
| Registered capital: |
No minimum registered capital required |
| Approval Timeline for branch incorporation: |
30-60 days |
| Legal representative assistance: |
Mandatory appointment; assistance available |
| Standard VAT rate: |
10% |
| Employment Laws: |
Must adhere to Vietnamese labor laws |
| Office space: |
Physical address needed |
| Activities: |
Parent-linked business |
📄 Table of Contents
- Requirements to open a branch office in Vietnam in 2025
- The structure of a branch office in Vietnam
- Registering a branch office in Vietnam
- Documents needed to set up a branch in Vietnam
- The manager of a branch in Vietnam
- Activities that can be completed by a Vietnam branch office in 2025
- Advantages of a branch office in Vietnam
- Restrictions imposed on branches in Vietnam
- Why open a branch office in Vietnam in 2025?
- Taxation of branch offices in Vietnam
- Economic facts for 2025
- Frequently Question & Answer
✅ Requirements to open a branch office in Vietnam in 2025
When setting up a branch in Vietnam, foreign companies must meet specific conditions to ensure legal compliance. To open a branch office in Vietnam, your parent company must be officially recognized by the relevant authorities in its home country and have been operating in its local market for a minimum of 5 years.
💡 Expert Tip: If you are planning to open a branch office in Vietnam in 2025, our company incorporation consultants are ready to provide expert, step-by-step support. We offer detailed guidance on every aspect of the process, from required documentation to regulatory approvals. For those seeking a convenient solution, our team also specializes in online incorporation, helping you explore all available Vietnamese company structures that can be registered online.
Contact our consultants today to streamline your journey of setting up a branch in Vietnam, whether you prefer in-person or online incorporation support.
🏢 The structure of a branch office in Vietnam
When setting up a branch in Vietnam, the branch office acts as an official extension of the foreign parent company on the Vietnamese market. A branch office is allowed to establish its own functional departments—such as accounting, marketing, and human resources—mirroring the organization of its parent company.
These departments enable the branch office to represent the foreign company with local authorities and ensure full compliance with Vietnamese regulations. By maintaining in-house teams, the branch can efficiently handle commercial operations, customer relations, and business administration on behalf of the head office.
✍️ Registering a branch office in Vietnam
When registering a branch office in Vietnam, foreign companies must work with the Department of Industry and Trade, as branch offices are not registered with the Ministry of Planning and Investment. The branch office is required to use the same name as the parent company and must have an official seal that matches this name.
To ensure a smooth process for branch office incorporation, it is highly recommended to appoint a local agent who can manage all registration and licensing procedures. One of the most important steps is obtaining an establishment license, which is mandatory before the branch can begin operations in Vietnam.
Our experienced company formation specialists in Vietnam are ready to assist you at every stage, from preparing documentation to securing the necessary permits. In addition to registering a branch office in Vietnam, we also provide full support for setting up any type of company, helping you understand all local regulations and choose the best structure for your business goals.
📋 Documents needed to set up a branch in Vietnam
To successfully set up a branch in Vietnam, foreign companies must prepare and submit a comprehensive set of documents. Submitting the correct paperwork is essential for a smooth branch office incorporation process. For expert guidance and to avoid unnecessary delays, it is highly advisable to work with experienced company formation agents in Vietnam.
Key documents required to register a branch office in Vietnam include:
- ✅ A notarized copy of the parent company’s certificate of incorporation (issued by the Trade Register in its home country)
- ✅ A notarized copy of the parent company’s statutory documents (from the same Trade Register)
- ✅ A notarized copy of the latest audited financial statements of the parent company.
- ✅ Meeting minutes from the parent company related to the latest audited financials
These documents must be submitted to the Department of Industry and Trade, along with:
- ✅ A notarized copy of the branch’s rental contract or office lease
- ✅ A notarized copy of the local branch representative’s passport
- ✅ The original incorporation documents of the branch office
- ✅ A completed application form (as prescribed by the Ministry of Trade)
❗️ Important Note: All documents must be officially translated into Vietnamese.
If you need clarification on any requirements or want to ensure your application is complete, our company formation agents in Vietnam are ready to support you.
For further advice on document preparation, branch office incorporation, or trademarking your services in Vietnam, reach out to our specialists for tailored support.
👨💼 The manager of a branch in Vietnam
When setting up a branch in Vietnam, it is mandatory to appoint a branch manager who is a resident of Vietnam. The branch manager is responsible for overseeing daily operations, representing the branch with local authorities, and serving as the primary liaison between the branch office and its parent company. In addition, the manager handles employee recruitment and ensures that all branch objectives are met.
Foreign companies can nominate a manager from their home country, but in such cases, the individual must obtain a Vietnam work permit to legally assume this position. Our company formation consultants in Vietnam can provide full guidance on the work permit application process.
📈 Activities Allowed for a Branch Office in Vietnam in 2025
Once you have completed branch office incorporation, your branch is entitled to perform a wide range of business activities under Vietnamese law. These include:
- 🤝 Entering into commercial contracts and agreements on behalf of the parent company
- 🛍️ Selling and purchasing goods or services in Vietnam
- 👷 Hiring Vietnamese employees or bringing in staff from the parent company’s home country (with appropriate permits)
- ⚖️ Conducting all business strictly within the scope of the granted establishment license
For expert assistance in obtaining an establishment license and ensuring full legal compliance, consult our Vietnam company formation team.
🌟 Key Advantages of Setting Up a Branch in Vietnam
1. Attract and retain new clients
Opening a branch in Vietnam gives your business access to new customer bases and markets, helping you grow your client portfolio and explore new revenue streams.
2. Reduce operating costs
Setting up a branch in Vietnam offers substantial opportunities to optimize your overall operating costs, making your business more competitive and resilient in both the short and long term.
By expanding into Vietnam, companies benefit from lower labor costs, more affordable materials, and cost-effective access to local suppliers and logistics. This directly reduces per-unit expenses for manufacturing, shipping, energy, and administrative operations.
When you leverage local talent and resources, your branch can streamline production, improve productivity, and efficiently manage day-to-day operations.
A diversified branch network also helps you mitigate financial risks. If one location faces a downturn or underperforms, profits generated by other successful branches can offset these losses, maintaining the company’s overall financial stability. This multi-location structure cushions the impact of market fluctuations, enhances business continuity, and enables flexible resource allocation across your organization.
Furthermore, branch office incorporation empowers your business to scale up with greater purchasing power—buying in bulk and negotiating better contracts, thus maximizing economies of scale. You can centralize certain administrative tasks, share staff or technology resources, and reduce duplicated efforts.
For international enterprises, Vietnam’s strategic position in Southeast Asia and its trade agreements open doors to regional expansion, helping you cut cross-border costs and optimize your supply chain throughout Asia.
🤝 Looking for Guidance? If you want to unlock these cost-saving advantages and craft a sustainable market entry strategy, our company formation consultants in Vietnam are here to guide you at every stage—from initial planning and paperwork to full branch office setup and ongoing operational support.
3. Expand market reach and improve resilience
A branch office lets you diversify your business operations and tap into emerging opportunities. It also helps mitigate risks, as strong performance in one branch can offset weaker results elsewhere.
If you are considering setting up a branch in Vietnam, our company formation consultants are available to guide you through every stage of the process—from documentation to business launch—ensuring a successful and compliant market entry.
⚠️ Restrictions imposed on branches in Vietnam
While setting up a branch in Vietnam is an attractive option for many foreign companies, there are important restrictions to consider. Not all types of foreign businesses are eligible to establish branch offices in Vietnam. For example, financial companies providing accounting, auditing, or bookkeeping services are not permitted to set up branches. Similarly, credit rating agencies and commodity trading platforms are restricted from operating under the branch office model.
Vietnamese law sets out clear limitations to ensure only certain industries and business activities can qualify for branch office incorporation. If your company’s main activity falls under a restricted sector, you may need to consider alternative business structures or consult with local experts for tailored solutions.
Additionally, every branch office in Vietnam is required to comply with local tax regulations. Even if your branch does not generate sales or issue invoices, you must still file regular VAT returns and meet all tax declaration deadlines. Maintaining full compliance often requires the support of a professional accountant familiar with Vietnamese business regulations.
🚫 Important: For up-to-date guidance on industry eligibility and compliance requirements, our company formation consultants in Vietnam are available to provide expert advice and help you navigate any regulatory challenges when establishing your branch office.
Why open a branch office in Vietnam in 2025?
There are compelling reasons for foreign companies to open a branch office in Vietnam in 2025. With favorable investment policies and a dynamic business environment, setting up a branch in Vietnam allows your company to:
- 🏢 Secure office space and equipment: Lease or rent premises and assets needed to run your operations locally, supporting smooth business activities in Vietnam.
- 💰 Remit profits internationally: Legally transfer profits back to your home country in accordance with Vietnamese regulations, ensuring financial flexibility for your global operations.
- 🛒 Serve Vietnamese customers directly: Market and deliver your products or services straight to clients in Vietnam, expanding your reach and brand presence.
- 🏦 Open local bank accounts: Establish bank accounts in VND or foreign currencies, streamlining business transactions and financial management.
- 📦 Source from local suppliers: Purchase goods and services within Vietnam, taking advantage of competitive pricing and efficient supply chains under your branch office’s business license.
If you are interested in setting up a branch in Vietnam or want tailored advice for your sector, our experienced company formation consultants are ready to guide you through every step of the process.
📊 Taxation of branch offices in Vietnam
When it comes to branch office taxation in Vietnam, foreign branches are subject to the same corporate income tax (CIT) rules as locally incorporated businesses. The standard corporate income tax rate in Vietnam is 20%. However, companies involved in the oil and gas sector may face higher rates, ranging from 32% to 50% depending on their specific operations.
Vietnamese regulations offer favorable tax treatment for corporate owners—dividends paid from a Vietnamese branch or subsidiary to its parent company are exempt from taxes, and no withholding tax is imposed on dividend payments to foreign company shareholders. For individual shareholders, a 5% withholding tax is applied to dividends.
Additionally, royalties and interest payments made to non-resident entities are subject to withholding taxes at rates of 5% and 10%, respectively.
To ensure full tax compliance and optimize your branch office’s tax position, it’s advisable to work with experienced company formation consultants in Vietnam who can provide up-to-date guidance on applicable rates, exemptions, and reporting requirements.
📈 Vietnam Economic Outlook for 2025
Vietnam’s economic outlook for 2025 remains highly positive. The country is projected to achieve the fastest GDP growth among the six largest Southeast Asian economies, with forecasts ranging from 6% to 7%. Key growth drivers include strong export performance, robust domestic demand, and rising levels of foreign investment in Vietnam.
Some local research institutes even anticipate growth rates reaching up to 8%. This dynamic environment presents new opportunities for international businesses seeking to expand in Vietnam.
For more insights and tailored guidance, connect with our company formation consultants in Vietnam.
❓ Frequently Question & Answer
Q1: What are the minimum operating requirements and documentation standards for opening a branch in Vietnam compared to other major Asian markets?
A1: Vietnam requires a notarized copy of the parent company’s incorporation certificate, statutory documents, latest audited financial statements, a rental contract for office space, and appointment of a legal representative. The parent company must have operated for at least five years. While standards are similar to some Asian markets, document legalization and Vietnamese translations are strictly enforced.
Q2: Are there any restrictions or sector-specific limitations that could affect the eligibility of my group’s main business activities for branch registration in Vietnam?
A2: Yes, not all business sectors are eligible for branch registration. Certain financial, audit, and credit-related services are restricted, and some regulated industries require extra permits. It’s important to confirm sector eligibility before proceeding.
Q3: What is the real timeline for branch incorporation—including regulatory approvals and post-licensing procedures—and which steps typically cause delays?
A3: The full process usually takes 8–12 weeks. Main delays occur during document legalization, translation, and review by the Department of Industry and Trade. Prompt and complete document submission helps avoid most bottlenecks.
Q4: How does parent company liability and branch governance work under Vietnamese law—especially in the event of a dispute or regulatory breach?
A4: The parent company is fully liable for all branch obligations, debts, and regulatory breaches. Branches are not separate legal entities, so risks are directly borne by the headquarters. Proper oversight and local compliance are essential to limit exposure.
Q5: What are the main compliance obligations—accounting, tax, licensing, HR—that must be met on an ongoing basis after the branch is operational?
A5: Ongoing requirements include tax registration and filings (VAT, corporate income tax), maintaining statutory accounting records, adhering to employment law, renewing business licenses as needed, and submitting periodic reports to authorities.
Q6: What are the most common reasons foreign branch applications in Vietnam get delayed or rejected, and how can we proactively avoid these pitfalls?
A6: Common issues include incomplete or incorrectly legalized documents, unclear business activities, sector ineligibility, and errors in the application form. Engaging experienced local advisors and double-checking paperwork minimizes these risks.
Q7: Are there any specific tax incentives or profit repatriation rules that my group should consider when operating a branch versus other legal entity options in Vietnam?
A7: Branches generally benefit from the same corporate tax rate (20%) as local companies and may access preferential tax rates or tax holidays in specific sectors. Profits can be remitted abroad, provided tax compliance is maintained. No withholding tax applies to dividends remitted to corporate parents.
