Setting Up a Representative Office in Vietnam

Before committing capital to a legal entity, many foreign companies open a representative office (RO) in Vietnam to study the market, promote trade and build partnerships — a light, low-cost form of presence.

What an RO can and cannot do

Under Decree 07/2016, a representative office may not directly generate profit in Vietnam. It may conduct market research, promote contracts for its parent, supervise the performance of contracts and act as a liaison. It cannot sign commercial contracts in its own name or issue sales invoices.

Eligibility

The foreign trader must have operated for at least one year since its lawful establishment abroad. The file includes the parent's business registration (consular-legalised), financial statements, a lease for the office and the appointment of a chief representative.

Authority and term

The licence is issued by the provincial Department of Industry and Trade where the office is located (some specialised sectors by the line ministry). Processing takes roughly 7–10 working days. The licence is valid for 5 years and renewable. The office must file an annual activity report.

Frequently asked questions

Can a representative office sell goods or issue invoices?

No. An RO cannot carry out profit-generating activities; to trade you must set up a legal entity (foreign-invested company).

Can a newly formed foreign company open an RO?

It must have operated lawfully abroad for at least one year to qualify.

How long is the licence valid?

Five years, renewable; an annual activity report is required.

How LTV Law helps

LTV Law prepares the file, handles consular legalisation and obtains the RO licence, and advises on when to upgrade to a legal entity. Contact our team.

This article is for general information only and does not constitute legal advice.