Procedure for Construction Materials Company Formation in Vietnam

The construction materials business is closely linked to the production, construction, and infrastructure development chain, playing a crucial role in the economy. To enter this market, businesses need not only financial capacity and a stable supply but also must fully meet legal requirements from the establishment stage. From a corporate legal consulting perspective, Viet An Law Firm will provide information on the Procedure for Construction materials company formation in Vietnam, thereby helping clients be more proactive in preparing and implementing their business plans in accordance with legal regulations.

Overview of construction materials company

Construction Materials

According to Article 3 of Decree 09/2021/ND-CP, construction materials are products and goods used to create construction works, excluding electrical equipment and technological equipment. Construction materials can be grouped as follows:

• Basic construction materials: Sand, stone, gravel, cement, lime, …
• Structural construction materials: Bricks, concrete, reinforced concrete, construction steel, …
• Finishing materials: Tiles, paint, glass, wood, decorative stone, gypsum ceilings and walls, …
• Metal materials: Steel, stainless steel, aluminum, copper used for structure and finishing, …
• Insulation, soundproofing, and waterproofing materials: Fiberglass, EPS/XPS foam, waterproofing membranes, sound-absorbing materials, …
• New, environmentally friendly construction materials: Non-fired bricks, lightweight concrete, recycled materials, green materials, …

Construction materials business

The construction materials business is a commercial activity involving the buying, selling, distribution, production, or supply of materials for civil, industrial, infrastructure, and finishing works in accordance with the law. Some of the main construction materials business activities currently include:

• Manufacturing of construction materials
• Production of bricks, concrete, building components, and finishing materials.
• Buying and selling, distribution of construction materials
• Wholesale and retail sale of sand, stone, cement, steel, bricks, and finishing materials.
• Import and export of construction materials
• Import of equipment and materials; export of materials according to market demand.
• Transportation and warehousing of construction materials
• Providing warehousing, loading, unloading, and transportation services to construction sites.
• Processing and preliminary processing of construction materials
• Cutting steel, mixing concrete, processing, and packaging materials.
• Consulting and supplying construction material solutions
• Consulting on material selection, providing quotations, and offering technical solutions suitable for the project.

Conditions for Foreign investors to access the construction materials market in Vietnam

Based on Vietnam’s Specific Commitments on Services in the WTO and the new generation Free Trade Agreements (CPTPP, EVFTA), Vietnam has significantly expanded the scope of business for foreign investors in the wholesale and retail of construction materials (industry codes CPC 622, 6113, 6121 and CPC 631, 632).

Currently, foreign-invested companies (FDI) are allowed to provide agency, wholesale, and retail services for most products manufactured in Vietnam or legally imported. In particular, previous restrictions on cement, iron and steel, and fertilizers have been lifted for investors from CPTPP member countries (from 2024) and EVFTA member countries (from 2025).

Regarding the distribution network, the Economic Needs Test (ENT) barrier for establishing a second or subsequent retail outlet has also been simplified or completely eliminated according to international commitments. Specifically:

• ENT is completely waived for investors from the EU and CPTPP countries according to the FTA roadmap.
• ENT is waived for retail outlets with an area of ​​less than 500m2 located within shopping malls.

Thus, foreign investors in Vietnam are now not only unrestricted on the percentage of capital contribution (they can own up to 100% of the capital) but also have full market access to key construction materials such as steel and cement, creating equal conditions with domestic businesses.

Procedure for construction materials company formation in Vietnam

Step 1: Selecting the Industry code and preparing the documents

Investors choose the industry code for the construction materials business according to the business needs of the enterprise. Some industry codes for construction materials business according to Decision 36/2025/QD-TTg include:

• 4673: Wholesale of other construction materials and installation equipment
• 4752: Retail of hardware, paint, glass, other construction materials and installation equipment

Then, prepare the registration documents for establishing an agricultural machinery business company, including the following basic documents:

• Application for business registration
• Company charter (except for private enterprises)
• List of owners, members, and shareholders
• Copies of documents of individuals and organizations involved
• Investment registration certificate

Step 2: Submitting the application

Individuals and organizations submit their applications to the Business Registration Authority under the Department of Finance online through the National Business Registration Portal.

Additionally, if individuals or organizations register a business in Hanoi or Ho Chi Minh City, they will receive an electronic Business Registration Certificate. For other provinces and cities, the Business Registration Authority will still issue a paper copy as usual.

Step 3: Paying the State Fees

• Applicants pay the business information publication fee at the time of submitting the business registration application.
• The business information publication fee: According to Circular No. 47/2019/TT-BTC, the business information publication fee is 100.000 VND/time (This fee is refundable if the business registration application is not approved).

Step 4: Business Registration Authority receives and processes

The business registration authority enters the information into the National Business Registration Information System when the following conditions are met:

• All required documents are available;
• The business name has been filled in on the business registration application form;
• The applicant’s phone number is available;
• All required state fees have been paid.

The business registration authority issues an application receipt and schedules a date for the applicant to receive the results.

Step 5: Business Registration Authority notifies the applicant of the results

• Case 1: Notification of the requirement to amend or supplement the business registration application
• Case 2: Issuance of the Business Registration Certificate

Step 6: Publicizing the business registration information

The deadline for publicly announcing business information is 30 days from the date of publication.

Step 7: Procedures the business must carry out after establishment

Such as seal engraving, signboard installation, tax registration, electronic signature, electronic invoice registration,…

Is trading in construction materials a conditional business activity?

According to the List of Conditional Business Activities in Appendix IV of the 2020 Investment Law, trading in construction materials is not a conditional business activity. Therefore, the business can commence operations immediately after registration.

What incentives are available for businesses in the construction materials industry?

According to Clause 1, Article 16 of the 2020 Investment Law, the following industries and professions are entitled to investment incentives (including exemptions and reductions in corporate income tax and other incentives):

“Production of new materials, new energy, clean energy, renewable energy; production of products with added value of 30% or more, energy-saving products.”

Essentially, current law does not provide incentives for the trading of conventional construction materials (such as opening a store selling cement, steel,…). Incentives mainly focus on the production of new/environmentally friendly materials.

In general, understanding and correctly implementing Procedure for Construction materials company formation in Vietnam is a crucial foundation for the business to operate legally, stably, and sustainably. With extensive experience in corporate law consulting, Viet An Law Firm is ready to accompany and support clients throughout the process of establishing and operating businesses in accordance with legal regulations.