Permitted Business Activities for Foreign-Owned Companies in Vietnam.
Business codes allowed for 100%FDI in Vietnam
When choosing a business sector in Vietnam, the first step is to determine your startup budget, as this will directly affect the scale of your project. It is advisable to focus on areas where your experience and skills can be utilized most effectively. A practical approach is to shortlist several business ideas, then analyze each one in detail, including licensing requirements, premises, equipment, staffing, and operational costs before making a final decision.
Not all business sectors in Vietnam are equally accessible to foreign investors. Some activities can be carried out through a 100% foreign-owned company (100% FDI company) with relatively few restrictions, while others require additional licenses, special approvals, or even partnership with a Vietnamese citizen or company.
It is also important to understand that in Vietnam the key factor is not the general business description itself, but the specific VSIC business code, licensing requirements, and the approval practice of the local authorities in the particular province where the business is being registered.
Business Activities Available for 100% FDI Companies in Vietnam Without Significant Restrictions
- IT development and related services
(except fintech and telecommunications, which require additional licensing and approvals); - Digital marketing and SMM;
- Computer and related services;
- Consulting services not related to regulated industries, including business consulting and information services;
- Other service-related business activities;
- Contract manufacturing;
- Wholesale trade;
- Import and export activities
(some categories of goods require additional licenses).
Business Activities Requiring Additional Licenses or Special Conditions
- Food and beverage business
(sanitary certificate, fire safety approval, alcohol license); - Retail business
(Department of Industry and Trade retail license for each retail location); - E-commerce
(registration/license with the Department of Industry and Trade); - Education, training, and related services
(education license plus mandatory security deposit); - Manufacturing of food products and industrial goods
(sanitary approvals, fire safety, environmental compliance); - Tourism business
(tourism license plus mandatory security deposit); - Car and motorbike rental business;
- Real estate business;
- Organization of sports and entertainment events
(in practice, obtaining the necessary licenses often requires partnership with a Vietnamese partner).
In many cases, foreign investors mistakenly assume that company registration automatically grants the right to conduct business activities. In practice, after establishing an FDI company, additional operational licenses are often required before business activities can legally begin.
Common Mistakes Foreign Investors Make When Starting a Business in Vietnam
Attempting to Register Too Many Business Activities
One of the most common mistakes is trying to include an excessively broad list of business activities “for future use.” Many investors believe it is better to register everything at once: trading, manufacturing, consulting, marketing, education, import-export, and numerous additional activities. In practice, this approach often creates the opposite effect in Vietnam.
The broader and more complex the list of registered activities, the higher the likelihood of additional questions from licensing authorities. As a result, the registration process may become significantly longer and more complicated.
The simpler and more transparent the company structure is during the registration stage, the easier the project approval process usually becomes. In practice, it is often much more effective to establish the company for its core activity first and add additional business lines later as the business develops.
Confusing Company Registration With the Right to Operate
Many foreign investors mistakenly believe that after obtaining:
- IRC (Investment Registration Certificate),
- ERC (Enterprise Registration Certificate),
the company automatically receives full legal authorization to operate in all registered business sectors. In Vietnam, this is often not the case.
Company registration is only the first step. For many industries, additional operational licenses and permits must be obtained after the company has already been established.
This is where many foreign investors encounter serious problems: the company has already been registered, office rent has been paid, employees have been hired, but actual business operations cannot legally begin due to missing licenses or regulatory approvals.
A successful business launch in Vietnam is not only about company registration, but also about building the correct legal and operational structure of the project from the very beginning.
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