Thinking of opening a business in Vietnam? You’re not alone. Vietnam is rapidly becoming a magnet for foreign direct investment (FDI) due to its stable economy, young workforce, and favorable trade agreements. But while opportunities are vast, the legal and administrative landscape can be challenging — especially if you go in unprepared.
To help you avoid costly delays and compliance issues, here are the top 5 mistakes foreign investors make when registering a company in Vietnam – and how to avoid them.
🚫 1. Choosing the Wrong Business Structure or Sector
Many investors jump into registration without carefully analyzing the right legal entity or checking whether their intended business requires special licenses or government conditions.
❌ Common Issues:
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Selecting a Joint Stock Company when an LLC would be more efficient
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Entering a conditional sector (e.g., e-commerce, education, advertising) without understanding local restrictions
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Ignoring foreign ownership caps in some industries
✅ Solution:
Consult with a legal team familiar with Vietnam’s investment laws. They’ll help you identify the ideal structure based on your capital, partners, and future plans.
🚫 2. Incomplete or Incorrect Documentation
Vietnamese authorities are very specific about documentation. Missing, outdated, or incorrectly notarized/legalized documents can lead to weeks of delay or outright rejection.
❌ Typical Mistakes:
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Notarizing documents in a foreign country without proper consular legalization
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Submitting old or inconsistent business plans
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Forgetting to include passport notarization or bank statements
✅ Solution:
Work with a bilingual FDI consultant who can help prepare your documents to local standards and check for consistency before submission.
🚫 3. Underestimating Capital Requirements and Timing
Many investors think they can register with a low amount of capital or contribute it whenever they want. In reality, Vietnam requires that capital be declared and contributed within 90 days of company licensing.
❌ Risks:
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Bank rejections due to insufficient capital
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Compliance violations for late capital contribution
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Trouble hiring staff or applying for visas with low declared capital
✅ Solution:
Plan your capital structure carefully. Even if it’s just for the first year, declare enough to cover essential expenses and contribute it on time to stay compliant.
🚫 4. Assuming Everything is “One-Stop” and Automatic
Setting up a business in Vietnam is not just about getting the license. Many foreign investors forget about post-licensing obligations, such as:
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Opening bank accounts
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Registering electronic invoices
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Declaring labor and tax information
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Signing office leases and local contracts
✅ Solution:
Use a full-service FDI firm that manages your setup and guides you through compliance steps post-registration.
🚫 5. Lack of Local Representation or Ongoing Support
After setup, your company still needs to comply with:
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Monthly tax filings
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Payroll and social insurance
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Annual audits and financial statements
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Licensing renewals or expansions
Foreign owners often overlook the need for a Chief Accountant, or a licensed tax agency to maintain operations legally.
✅ Solution:
Partner with a local accounting & tax service provider that specializes in foreign-owned companies to keep your operations smooth and penalty-free.
🌐 Avoid These Pitfalls with FDIinVietnam.com
At FDIinVietnam.com, we’ve supported 300+ foreign investors in avoiding these mistakes — and setting up compliant, thriving companies in Vietnam.
Our all-in-one setup package includes:
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Company formation (IRC & ERC)
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Legal consulting for business structure
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Post-licensing support
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Accounting and tax services
📞 Ready to Set Up Your Business the Right Way?
Let us handle the paperwork so you can focus on growth.
👉 [Book a Free Consultation]
👉 [Download Our FDI Setup Checklist]