To set up an FDI company is becoming a trend of interest to many Middle Eastern investors in the context of expanding economic cooperation between Vietnam and Saudi Arabia. However, for the investment project to be deployed smoothly, investors need to clearly understand the provisions of investment law, enterprise law, and related regulations. The following article will comprehensively analyze the conditions, procedures, and important legal notes when you set up an FDI company with Saudi Arabian capital in Vietnam.
Over the years, the cooperative relationship between Vietnam and the Kingdom of Saudi Arabia has continuously expanded in many fields such as trade, investment, energy, construction, labor, and agriculture. The two countries established diplomatic relations in 1999 and regularly maintain dialogue mechanisms, investment promotion as well as high-level delegation exchanges to promote bilateral economic cooperation.
Saudi Arabia is currently one of the largest economies in the Middle East region and a member of the Gulf Cooperation Council (GCC). With the Saudi Vision 2030 strategy, the Saudi Arabian Government is promoting the diversification of outward investment, reducing dependence on oil, and expanding business operations in developing economies, among which Vietnam is evaluated as a market with high potential for Saudi Arabian foreign direct investment Vietnam.
Conversely, Vietnam is also actively attracting high-quality FDI capital from Middle Eastern countries by improving the investment environment, simplifying administrative procedures, and perfecting the legal system on investment and enterprises. This is an important foundation to help Saudi Arabian businesses be more favorable when deploying investment projects in Vietnam.
Thanks to a stable investment environment and high growth potential, Vietnam is attracting the attention of many Saudi Arabian investors in the following fields:
Saudi Arabian investors have strengths in the energy sector, so they are often interested in electricity, renewable energy, logistics, seaports, and transport infrastructure projects in Vietnam.
Food, chemical, construction material, machinery, and industrial equipment production projects are evaluated as having high potential thanks to competitive production costs and export capabilities.
Vietnam has an advantage in agricultural raw materials, creating conditions for Saudi Arabian businesses to invest in producing food, beverages, and Halal-standard products to serve the Middle East market.
Sectors such as commercial real estate, hotels, resorts, trade, and services are also industries that attract Saudi Arabian investors as consumer and tourism demand in Vietnam is increasing. Here, they often choose to open FDI company Saudi capital to operate efficiently.
Establishing an FDI company in Vietnam brings many benefits for Saudi Arabian investors in the process of expanding business operations and market development.
To establish a company helps investors directly manage production, business activities, labor recruitment, contract signing, and build long-term development strategies in Vietnam.
Through an FDI enterprise, investors can exploit Vietnam’s market of nearly 100 million people, while taking advantage of the favorable geographical location to expand business operations to countries in the Southeast Asian region.
Vietnam is a member of many FTAs such as CPTPP, EVFTA, and RCEP. This is an advantage that helps FDI enterprises have the opportunity to export goods to many markets with preferential tariffs when meeting regulatory conditions.
For projects in investment incentive sectors or geographical areas, enterprises can enjoy preferential policies on taxes, land rental, or other investment support according to the provisions of the Law on Investment 2025 and guiding documents. This strongly encourages Saudi Arabian foreign direct investment Vietnam.
According to Clause 19, Article 3 of the Law on Investment 2025, foreign investors include individuals with foreign nationality or organizations established under foreign law carrying out business investment activities in Vietnam. Thus, individuals and enterprises with Saudi Arabian nationality or established in Saudi Arabia fully have the right to invest in Vietnam if they meet the conditions prescribed by law.
Besides, Article 19 of the Law on Investment 2025 also stipulates that foreign investors can establish economic organizations in Vietnam after meeting conditions on market access, investment forms, capital ownership ratios, and performing investment procedures according to regulations.
However, the investment rights of Saudi Arabian investors are not absolute. For some conditional business lines or those on the list of restricted market access for foreign investors, enterprises still must meet specific requirements on capital contribution ratios, scope of operations, or specialized conditions.
One of the most important contents when you set up an FDI company is to determine whether the intended business line is subject to market access restrictions.
According to Article 8 of the Law on Investment 2025, foreign investors are subject to the following market access principles:
Market access conditions may include:
Therefore, before making an investment decision, investors need to carefully review the business lines to determine whether it is necessary to apply for additional approval or meet special conditions.
Not all industries allow foreign investors to own 100% of capital or invest unconditionally. Some sectors such as education, logistics, transportation, retail distribution, advertising, telecommunications, financial services, or real estate may be subject to certain restrictions on capital contribution ratios or operating conditions.
In addition, if the enterprise plans to operate in conditional business lines under Vietnamese law, after establishment, it must apply for corresponding specialized licenses before officially going into operation. This is especially true for those looking to establish FDI company Saudi Arabia.
Therefore, reviewing the business lines right from the stage of preparing the investment dossier is of special importance, helping investors choose the appropriate model and limit legal risks during project implementation.
For the general procedures to establish a company as an FDI enterprise, clients please refer to the article content: https://vietanlaw.com/set-up-fdi-company/
According to Point a, Clause 1, Article 26 of the Law on Investment 2025, investment projects of foreign investors are required to apply for an Investment Registration Certificate.
Yes, if the intended business line is not on the list of restricted market access or there are no regulations limiting the ownership ratio of foreign investors. When they open FDI company Saudi capital, having 100% ownership is quite common in unrestricted sectors.
Normally, documents proving the legal status of foreign organizations or individuals used in the investment dossier must be consularly legalized, translated into Vietnamese, and authenticated according to regulations, unless exempted.
Yes. According to Article 28 of the Law on Investment 2025, investors have the right to choose to register for investment under the provisions of this Article for investment projects in industrial parks, export processing zones, high-tech parks, concentrated information technology parks, free trade zones, international financial centers, and functional areas in economic zones, except for projects that require investment policy approval according to the Government’s regulations.
Projects registering for special investment do not have to perform procedures for investment policy approval, technology appraisal, environmental impact assessment report preparation, detailed planning preparation, issuance of construction licenses, and procedures for approval, acceptance, or permission in the fields of construction and fire prevention and fighting.
If investors need to set up an FDI company with Saudi Arabian capital in Vietnam, please contact Viet An Law Firm for detailed consultation and quick, effective support.
Lawyer in charge: Lawyer Trung Thi Lieu
Article censor: Trainee Lawyer Do Quynh Trang
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