Setting Up an Electrical Equipment Business in Vietnam

In the context of accelerating industrialization, modernization, and energy transition, the electrical equipment trading sector is becoming an investment choice for many individuals and organizations. Setting up an electrical equipment business in Vietnam is an important legal step, requiring investors to clearly understand regulations on business lines, operational conditions, and enterprise registration procedures in accordance with current laws. As a professional legal consultancy, Viet An Law always accompanies clients in reviewing legal risks, completing dossiers, and ensuring full compliance with regulations from the business start-up stage. The following contents clarify the core legal issues that need to be noted when establishing an enterprise in this field.

Electrical equipment trading activities

Electrical equipment is understood as machinery, tools, components, and systems that use electrical energy to serve the transmission, control, protection, and consumption of electricity in production, business, and daily life. In practice, electrical equipment may include specific products such as transformers, electrical cabinets, electric wires and cables, circuit breakers, switches, sockets, lighting equipment, electric motors, or household electrical appliances.

Electrical equipment trading activities in enterprises

Correspondingly, electrical equipment trading activities are implemented in various forms. For example, enterprises may carry out the following activities:

• Wholesale and retail of electric wires and cables, switches, and sockets for construction projects;
• Import of transformers and switchgear from abroad for domestic distribution;
• Processing and assembling control cabinets according to orders of factories and industrial zones;
• Provision of electrical system installation services, maintenance, and repair of electrical equipment for workshops, buildings, and residential areas.

Electrical equipment businesses in Vietnam (VSIC Codes – Vietnam Standard Industrial Classification)

Pursuant to Decision No. 36/2025/QD-TTg, enterprises registering for electrical equipment trading may select one or more of the following business lines, depending on their business needs. Specifically:

Setting up an electrical equipment business in Vietnam

Setting up an electrical equipment business in Vietnam

Procedures for setting up an electrical equipment business in Vietnam

Trading in electrical equipment is not a conditional business line listed in Appendix IV promulgated together with the Law on Investment 2020. Therefore, investors only need to carry out enterprise establishment procedures with the Business Registration Authority as usual. The procedural steps are as follows:

Step 1: Selection of business lines and preparation of dossiers

Investors select business lines for trading in electrical equipment according to the enterprise’s business needs.

Then, prepare the application dossier for establishing a company trading in electrical equipment, including the following basic documents:

• Application for enterprise registration
• Company charter (except for private enterprises)
• List of owners, members, or shareholders
• Copies of identification documents of relevant individuals and organizations
• Investment Registration Certificate

Step 2: Submission of dossiers

Individuals and organizations submit dossiers to the Business Registration Authority under the Department of Finance via online submission through the National Enterprise Registration Portal.

In addition, if individuals or organizations register an enterprise in Hanoi or Ho Chi Minh City, they will receive an electronic Enterprise Registration Certificate. For other provinces and cities, the Business Registration Authority still issues paper certificates as usual.

Step 3: Payment of fees

The applicant pays the enterprise information disclosure fee at the time of submitting the enterprise registration dossier. Disclosure fee: Pursuant to Circular No. 47/2019/TT-BTC, the enterprise information disclosure fee is VND 100,000 per submission (this fee is refundable if the enterprise registration dossier is not approved).

Step 4: Receipt and processing of dossiers by the Business Registration Authority
The Business Registration Authority receives and enters information into the National Enterprise Registration Information System when all of the following conditions are satisfied:

• The dossier is complete in accordance with regulations;
• The enterprise name has been filled in the application for enterprise registration;
• The applicant’s phone number is provided;
• All prescribed fees and charges have been fully paid.

The Business Registration Authority issues a receipt and an appointment slip for result notification to the applicant.

Step 5: Notification of results by the Business Registration Authority
The enterprise is issued the Enterprise Registration Certificate within 03 days from the date of receipt of a valid dossier when all of the following conditions are fully satisfied:

• The registered business lines are not prohibited from investment and business;
• The enterprise name is formulated in accordance with Articles 37, 38, 39, and 41 of the Law on Enterprises 2020;
• The enterprise registration dossier is valid;
• All prescribed enterprise registration fees have been fully paid in accordance with regulations on fees and charges.

Step 6: Publication of enterprise registration contents

The Business Registration Authority publishes the enterprise registration contents on the National Enterprise Registration Portal.

• Pursuant to Article 32 of the Law on Enterprises, the published contents include: Enterprise Registration Certificate;
• Business lines;
• List of founding shareholders; list of foreign investor shareholders in case of a joint-stock company (if any).

The time limit for public disclosure of enterprise information is 30 days from the date of publication.

Step 7: Post-establishment procedures to be carried out by the enterprise

• Seal engraving: Currently, the management and use of the seal are decided by the enterprise itself. Therefore, the enterprise has the right to decide on the seal design and engrave it at an authorized seal engraving facility.
• Installation of a signboard at the company’s head office address.
• Registration of digital signatures (if required by the enterprise).
• Registration of bank accounts.
• Tax registration and declaration: The enterprise logs into the electronic tax system with the account provided by the tax authority to register necessary tax declarations.
• Registration and notification of use of electronic invoices.

Practical experience in setting up an electrical equipment business in Vietnam

From the practical perspective of consulting and implementing dossiers for establishing enterprises trading in electrical equipment, Viet An Law finds that there are two core issues that investors often encounter and need to pay special attention to:

Determining the scope of business – the first critical step (Electrical equipment import, installation, maintenance)

• Common issue: Many enterprises register business lines in overly general terms, such as “wholesale and retail of electrical equipment”. This causes difficulties when they wish to expand operations to import, installation, maintenance, or processing and assembly of electrical cabinets, as they must carry out additional procedures to supplement business lines.
• Solution: Enterprises should proactively determine the entire chain of expected business activities (commercial, technical, and service activities). Then, register the appropriate list of business lines from the outset.
• Benefit: Avoids operational interruptions and unnecessary administrative procedures later.

Selecting an appropriate head office address – a foundation for sustainable development (Vietnam company address compliance)

• Common issue: Enterprise registration dossiers are often requested to be amended because the registered head office is located in apartment buildings or at locations without business functions.
• Special note: For enterprises trading in electrical equipment, especially those with warehouses or assembly activities, the selection of head office address and business locations must be consistent with planning regulations and permitted land-use purposes.
• Importance: Helps enterprises operate smoothly during inspections, examinations, and long-term development.

Is statutory capital required for setting up an electrical equipment business in Vietnam?

Pursuant to Appendix IV on the List of Conditional Business Lines under the Law on Investment 2020 and guiding documents, trading in industrial electrical equipment (transformers, electrical cabinets) is not included in the list of business lines subject to statutory capital requirements. Therefore, enterprises have the right to decide and register their charter capital in accordance with the Law on Enterprises 2020.

However, in order to ensure financial capacity when participating in bidding for M&E projects under the Law on Bidding 2023, investors should register a capital level commensurate with the expected contract scale.

What Fire Safety (PCCC) Standards apply to setting up an electrical equipment business in Vietnam?

Business activities and installation of charging station infrastructure must strictly comply with QCVN 06:2022/BXD (Amendment 1:2023) on fire safety for buildings and structures. In particular, charging equipment systems must meet the technical requirements under TCVN 13456:2022 (on electric vehicles and charging infrastructure), including regulations on fire spread prevention distances, solutions for compartmentalizing charging areas, and automatic power cut-off systems in case of fire or explosion incidents.

If you have any concerns regarding procedures for setting up an electrical equipment business in Vietnam, EV charger business compliance, fire safety (PCCC) standards, or other legal issues related to Vietnam company formation, please contact Viet An Law for timely support before compliance gaps turn into costly legal risks.