The Information Technology Foreign-invested Enterprises in Vietnam

Covid-19 pandemic has accelerated the demand and wave of digital transformation in the era of industrial revolution 4.0, whereby businesses have boldly invested in technology in their organizations, there are numbers of information technology (IT) companies were established and promises explosive growth, along with an increase in technology investment packages.

The technology sector is an industry prioritized for development by the Vietnamese government, attracting investors to participate to create a value chain for the market.

For foreign investors, according to the commitments when Vietnam joins the WTO, computer services and related services (CPC 841-845, CPC 849), foreign investors are allowed to set up a 100% foreign-invested enterprise or joint venture with a Vietnamese partner or through a business cooperation contract, after 3 years from the date of joining, allowing the establishment of a branch. In 2 years from the date of accession to WTO on 11/01/2007, 100% foreign-invested enterprises are only allowed to provide services to foreign-invested enterprises in Vietnam.

Contact us if you need further advice on your investment in the technology sector.

Note: This article is for informational purposes only and it is not a legal advice. The content of the article represents its own of TTVN Legal, it subject to change without prior notice.