Set up a German FDI company in Vietnam

Germany has long been an important development partner of Vietnam, contributing positively to the country’s industrialization and modernization. The cooperation between the two countries is not only based on historical foundations but also underpinned by shared economic interests and a commitment to promoting sustainable development. With major investments in the processing, manufacturing and automotive industries, along with the transfer of modern technology, Germany has helped Vietnam improve its production capacity, create more jobs and promote economic growth. In addition, Germany’s support in fields such as renewable energy, environmental protection and human resource training has contributed to building a sustainable Vietnam. Therefore, in order to promote the set up a German FDI company in Vietnam, Viet An Law would like to provide preliminary guidance on the above procedures through the article below.

Why should Germany set up a FDI company in Vietnam?

Vietnam, with its many advantages in terms of geographical location, young workforce, open policy and large consumer market, has become an attractive destination for German investors. However, to achieve the highest efficiency, German businesses need to choose industries that are suitable for the strengths of both countries.

Here are some industries that German businesses can consider investing in Vietnam:

Processing and manufacturing industry

• Automotive and components: Vietnam is an attractive destination for automobile and component manufacturers. German businesses with advanced technology can take advantage of this opportunity to expand production and supply high-quality products to the domestic and export markets.
• Electronics and computers: The electronics and computer industry is developing strongly in Vietnam. German businesses can invest in the production of electronic components, the assembly of computers and other electronic devices.

Energy industry

• Renewable energy: Vietnam has great potential for renewable energy such as solar and wind energy. German businesses can invest in renewable energy projects, contributing to environmental protection and ensuring energy security for Vietnam.
• Energy efficiency: German businesses can provide energy efficiency solutions to Vietnamese businesses, helping to reduce production costs and protect the environment.

Service Industry

• Tourism: Vietnam is an attractive tourist destination with many scenic spots. German businesses can invest in hotels, resorts, and tourism services.
• Education: Vietnam is in great demand for high-quality education. German businesses can cooperate with Vietnamese universities to provide training and research programs.
• Health: Vietnam’s health sector is growing rapidly. German businesses can invest in hospitals, medical centers, and provide high-quality medical services.

Information Technology Industry

• Software: Vietnam has abundant human resources in the field of information technology. German businesses can establish software research and development centers in Vietnam.
• IT services: German businesses can provide IT services such as consulting, security, and cloud computing to Vietnamese businesses.

The process of establishing a 100% German-owned company in Vietnam

Step 1: Apply for an investment certificate;

Step 2: Register to establish a 100% German-owned company in Vietnam;

Step 3: Proceed to engrave the legal entity’s seal when it has a tax identification number;

Step 4: Open an investment capital account and contribute capital;

Step 5: After completing the capital contribution procedure, business activities can be carried out. Note that it may be necessary to apply for sub-licenses for conditional business investment lines

Apply for an investment certificate to establish a 100% German-owned company in Vietnam

Dossier of application for an investment certificate

• Written request for implementation of the investment project;
• An investment project proposal includes the following contents: the investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, investment schedule, labor demand, proposal for investment incentives, impact assessment, etc socio-economic efficiency of the project;
• Dossier proving the company’s head office: Lease contract, Notarized copy of real estate documents of the lessor: Land use right certificate, Construction permit; if the lessor is a company: It is necessary to provide a copy of the enterprise registration certificate with the function of real estate business;
• Confirmation of account balance corresponding to the capital intended to establish an FDI company is consular legalized and notarized

Depending on whether the investor is an individual or a legal entity, it will be necessary to provide the following additional documents:

Place of application: Department of Planning and Investment where the head office is expected to be located.

Processing order: Within 15 days from the date of receipt of a complete and valid dossier, the Department of Planning and Investment will issue an Investment Registration Certificate to the foreign investor. In case of refusal, the Department of Planning and Investment will reply in writing and clearly state the reason.

Registration of establishment of a 100% German-owned company in Vietnam

Dossier of application for a certificate of registration of a German-owned enterprise

• Application for enterprise registration;
• Charter of the enterprise;
• List of members of a limited liability company with two or more members or a list of general partners;
• A notarized copy of the identity card or valid passport of the individual member; a notarized copy of the enterprise registration certificate of the member being an organization; a notarized copy of the valid identity card or passport of the legal representative of that organization;
• The investment registration certificate of the German investor has been completed above.

Place of application: Department of Planning and Investment where the enterprise is headquartered.

Duration: 03 – 06 working days.

Engraving the legal entity seal after having a tax identification number

After the business has a tax identification number, engraving the legal entity seal is an important step to complete the establishment procedure. The legal entity seal is an official identification sign of the business, used in transactions and legal documents.

Open an account with 100% German investment capital in Vietnam and contribute capital

Preparation of dossiers for opening investment capital accounts includes:

• Enterprise establishment license or investment registration certificate.
• Investor’s identity document (passport, visa).
• Documents proving the legal origin of the investment capital.

Place to apply: Submit the application at the selected bank.

The bank will conduct the appraisal of the dossier and open an investment capital account for the investor.

After having an investment capital account, the company with Thai capital contributed capital. Note that enterprises need to fully contribute the registered capital within 90 days from the date of issuance of the business registration certificate.

• Money transfer: Investors transfer money from an overseas account to an investment capital account opened in Vietnam.
• Confirmation: The bank will confirm the transfer of capital contribution.

Any request to set up a company in Vietnam, please contact Viet An Law for the best support.