What Foreigners Must Know Before They Buy an Apartment in Vietnam: 7 Steps

  Foreigners have shown growing interest in Vietnam’s real estate market, not just for living, but also for long term investment or relocation. The law does allow foreigners to buy an apartment in Vietnam, but the process is sometimes not straight forward.

There are ownership limits, project eligibility rules, and strict regulations about how an apartment can be used. Some projects may not be legally open to foreign buyers. Others have unclear ownership structures, which could create long delays or real estate disputes later.

In here, we discuss several issue, giving some hints on what to check, what to avoid, and how to protect your rights when you decide to buy an apartment in Vietnam

What Foreigners Must Know Before They Buy an Apartment in Vietnam

What Foreigners Can and Cannot Buy?

Under Vietnamese law, foreigners are allowed to buy an apartment in Vietnam in specific conditions. Ownership is permitted only in commercial housing projects approved by competent authorities.

Here are the main points every buyer should know:

• Foreign ownership limit: Only up to 30% of total units in any apartment building can be owned by foreigners. Once that quota is full, further purchases by foreigners are not allowed.
• Ownership duration: A foreign buyer receives ownership for 50 years, renewable upon request to the authorities.
• Property type restriction: Foreigners can own apartments, not land or individual houses (except under rare conditions).
• Eligibility of the project: Only projects approved for foreign ownership can sell to non Vietnamese buyers.
• Location restrictions: Projects near military or security areas cannot be sold to foreigners, even if approved for local buyers.

If you plan to buy, it is crucial to confirm the project’s eligibility before paying a deposit. This verification prevents unnecessary risk.

Legal Risks Commonly Faced by Foreign Buyers

Many foreign buyers assume that once a developer offers a unit, the transaction is automatically legal. Unfortunately, that’s not always true. Below are the most frequent risks observed in practice.

Project not legally approved for foreign ownership

Some developers market apartments to foreigners even though the project has not yet received permission to sell to foreign individuals. This can later lead to cancellation or loss of deposit.

Misleading ownership structure

When projects are not eligible for foreign ownership, some developers use long term rental contracts (often 50 years) as a substitute for a sale contract. Legally, this is not ownership, it is a lease. The buyer cannot register ownership or sell it later as property.

Incomplete legal documents

A developer may not have all the required certificates such as the investment registration certificate, construction permit, or land use right certificate. Without these, ownership registration can be delayed or denied.

Illegal use of apartments

Apartments in residential buildings can only be used for living. Turning them into offices or using them for short term online accommodation activities violates housing regulations. Such operations require separate business licenses, fire safety approvals, and tax declarations.

Payments through improper channels

Paying in foreign currency or to personal accounts instead of authorized developer accounts can cause regulatory and tax issues. All payments should go through licensed Vietnamese banks under the buyer’s name.

Step by Step Process When You Buy an Apartment in Vietnam

The buying process may look simple, but each step involves specific legal documents and careful review. Here is a general outline of what to expect.

Step 1: Clarify your purpose and ownership eligibility

Before you begin, decide whether your goal is to live, rent, or invest.

If your purpose involves generating income, make sure the building’s legal status allows leasing, especially for short term or serviced apartment style operations.

Ask the developer whether:

• The project is approved for foreign ownership;
• The foreign ownership quota is still available;
• The area is not in a restricted security zone.

This early check will save time and prevent potential legal conflicts.

Step 2: Verify the developer’s legal status

Request the developer’s official documents, including:

• Investment Registration Certificate (IRC) in case of foreign developer,
• Enterprise Registration Certificate
• Construction Permit and approved design drawings
• Land Use Right Certificate for the project land
• Authorization to sell apartments to foreigners

A reliable developer will have these documents ready and be transparent about their contents. If the developer hesitates or delays, that is a warning sign.

Step 3: Review the draft Sale and Purchase Agreement (SPA)

The SPA is the central document defining your ownership rights. It should be bilingual (Vietnamese and English) and include:

• Apartment details (size, floor, design, finishing)
• Total price and payment schedule
• Handover and warranty obligations
• Penalties for delay or breach
• Procedure for ownership registration (pink book issuance)

Always have the draft SPA reviewed by a qualified lawyer before signing. Small wording differences can significantly affect your rights, especially concerning refund conditions or penalties.

Step 4: Deposit and payment schedule

Most developers require a deposit (around 5–10% of the purchase price) to reserve a unit. The deposit agreement must clearly state:

• Payment purpose and amount;
• Refund conditions if the sale cannot proceed;
• Deadlines for signing the SPA.

For off plan projects, payments are typically divided into several stages tied to construction progress. You should:

• Pay only through official banking channels in Vietnam;
• Avoid paying to personal accounts or in foreign currency;
• Keep all receipts for later registration.

Step 5: Construction progress and handover

Before handover, inspect the apartment carefully:

• Check the walls, floor, water and electricity systems;
• Test all fixtures and ensure the finishing matches the contract;
• List any defects and ask the developer to fix them before signing the handover record.

The handover report should include the date, names of parties, and confirmation of apartment condition. Only sign after you are satisfied.

Step 6: Ownership certificate (Pink Book) registration

Once the apartment is handed over and payment is complete, the developer must support you in applying for the ownership certificate, commonly called the “Pink Book.”

This certificate, issued by the Department of Natural Resources and Environment, proves your ownership. It records:

• Your name and nationality;
• Apartment address and size;
• Ownership duration;
• Legal rights and obligations.

Foreign buyers should ask the developer for a clear timeline and written confirmation of when the pink book will be issued. In some cases, delay happens because the developer has not completed tax obligations or legal procedures.

Step 7: Compliance during ownership

Even after obtaining ownership, foreign buyers have ongoing obligations:

• Pay management fees and maintenance funds to the building management company;
• Declare and pay personal income tax on rental income, if leasing;
• Comply with fire safety and building rules;
• Renew ownership before the 50 year term expires.

Proper record keeping ensures smooth renewal, resale, or inheritance later.

Understanding Use Restrictions in More Detail

Residential apartments are governed by Vietnam’s Housing Law, which defines their use strictly for living purposes.

If an owner uses the apartment for short term stays through online accommodation platforms, this activity is considered a commercial use and subject to different licensing. It may require:

• Business registration under the tourism or lodging category;
• Fire safety and security approval;
• Tax registration and regular declarations.

Without these, authorities may impose administrative fines or request suspension. This is why buyers intending to lease should clarify the project’s intended use at the start. Some mixed use or serviced apartment developments are legally structured to permit such operations, but most residential condominiums are not.

Due Diligence Checklist for Foreign Buyers

Before you buy an apartment in Vietnam, undertake due diligence and check the following items carefully:

No.	Item to Verify	Why It Matters
1	Project eligibility for foreign ownership	Only approved projects can sell to foreigners
2	Developer’s IRC, construction permit, and land use certificate	Confirms the project’s legal existence
3	Foreign ownership quota remaining	Ensures your unit can be registered
4	Draft SPA reviewed in both languages	Prevents contract disputes
5	Deposit and payment method via official bank	Ensures transaction legality
6	Handover inspection checklist	Protects your rights on defects
7	Pink book issuance timeline	Confirms ownership security
8	Restrictions on use (living vs leasing)	Avoids administrative penalties

Completing this checklist reduces exposure to hidden legal problems and helps ensure that your purchase proceeds smoothly.

Common Questions About Buying Apartments in Vietnam

Q1. Can foreigners really own apartments in Vietnam?

Yes. Foreigners may buy an apartment in Vietnam in approved projects, within the 30% ownership limit of a building.

Q2. How long is ownership valid?

Usually 50 years, renewable upon request to the authorities. The renewal is generally straightforward if you continue to meet eligibility requirements.

Q3. Can I buy multiple apartments?

Yes, provided that total ownership by foreigners in the building does not exceed the legal limit.

Q4. Can I lease my apartment?

You can lease it on a long term basis and pay income tax on the rent. Short term online leasing is considered a business activity and may need additional licensing.

Q5. Can I sell the apartment before the 50 year term expires?

Yes, you can transfer ownership to another eligible buyer. The buyer’s ownership period will continue for the remaining years of the original term.

Q6. What taxes apply when buying or selling?

Buyers pay registration and notary fees. Sellers pay a 2% transfer tax on the sale price. Rental income is also taxable.

Q7. What is the difference between a sale contract and a 50 year lease contract?

A sale contract grants ownership registered with a pink book. A 50 year lease gives only usage rights for the duration of the lease and cannot be transferred as ownership.

Q8. Can I finance my purchase through a local bank?

Some banks offer limited financing for foreigners with long term visas or local income. However, most foreign buyers purchase with cash or funds transferred from abroad.

Q9. What happens if the developer delays handover or pink book issuance?

The SPA usually provides for penalties or compensation. You can enforce the terms through negotiation or, in serious cases, legal proceedings.

Q10. Can I inherit or transfer my apartment to my family?

Yes, inheritance by eligible heirs is allowed. If the heir is a foreigner, they must also meet eligibility conditions or sell the property.

Key Legal Advice to Protect Your Rights

• Engage a local lawyer to verify all documents before signing.
• Confirm project eligibility for foreign buyers and check foreign ownership quota.
• Ensure contracts are bilingual and notarized.
• Pay only via legal banking channels and keep receipts.
• Avoid “early sale” or “deposit” offers when the project is not fully licensed.
• Respect use restrictions, residential apartments cannot be used as offices or for short term rentals without proper registration.
• Keep communication written with the developer and agent to prevent disputes.
• Monitor ownership renewal before expiry.
• Declare taxes properly to maintain compliance.
• Consult professionals early if you face delays or unclear terms.

Conclusion

Buying property in a foreign country always involves more than signing a contract. In Vietnam, the key challenge is understanding what you can legally own and how to maintain that ownership safely.

When you plan to buy an apartment in Vietnam, focus on the legal foundation rather than marketing promises. Ensure the project is eligible for foreign ownership, verify documents, and make payments only after clear approval.

With careful preparation and accurate information, foreign buyers can navigate Vietnam’s legal system confidently and avoid unnecessary risks. The process requires patience and attention to detail, but the reward is secure ownership in compliance with local law.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/library/7-steps-buy-an-apartment-in-vietnam.html

12 Challenges Petitioners Face and How Trial Counsel in Vietnam Bring Clarity and Hope

  Court is a maze. Time matters. Documents matter more.

For overseas clients and local businesses alike, the difference between progress and delay often comes down to the quality of guidance from trial counsel in Vietnam.

In here, we explain the real challenges that make litigation hard, the common points where cases stall, and the practical ways to move forward. The core problem is procedural and cultural complexity. The solution is a disciplined plan with clear steps, transparent costs, and reliable coordination led by experienced trial counsel.

How Trial Counsel in Vietnam Bring Clarity and Hope

Introduction

Vietnamese litigation looks simple from the outside and very technical from the inside. Many clients underestimate the level of detail that Vietnam courts require before a judge will even accept a case file. Within the first weeks you will face strict formats, legalization and translation rules, and a careful review by the court clerk and the judge. With guidance from trial counsel in Vietnam, parties can prepare a clean file, avoid rejections, and reduce costly delay. The following sections turn the hidden work of courtroom preparation into an easy path you can follow.

The Role and Why It Matters

Courtroom advocacy is only the tip of the iceberg. Most of the heavy work happens in preparation. Evidence must be collected, authenticated, translated, arranged, and filed in the right order. Hearings are short and focused, so preparation must be precise. Clients who work early with trial counsel give themselves a real advantage because procedural mistakes are hard to fix later.

Petition Drafting and Strict Formats

A petition can be rejected for small errors. Courts check party names, addresses, business registrations, claim amounts, evidence lists, jurisdiction, and payment of court fees. Judges look closely at whether the claim is clear and whether the requested remedy is legally grounded. Experienced trial counsel in Vietnam know how to meet formal requirement and how to structure the petition so that the court understands the dispute from page one.

Powers of Attorney and Consular Legalization

When a petitioner or a corporate representative is abroad, the power of attorney usually needs attestation: notarization, consular legalization, and certified translation or in some countries such are called apostille. Processing times vary by country. The file often returns for correction when a signature block is incomplete or the corporate seal is missing. Careful checklists from trial counsel in Vietnam can save weeks and protect filing timelines.

Translation Quality and Terminology Control

Courts require Vietnamese language filings. Commercial contracts often contain technical clauses that lose meaning in weak translations. A single mistranslation can change a liability clause or alter a limitation of damages. Trial counsel use translators who understand legal terminology and maintain a term base so that key phrases remain consistent across all documents.

Cultural Expectations and Judge Led Process

Many foreign clients expect aggressive, adversarial hearings. Vietnamese judges often prefer order, clarity, and reasonable settlement attempts. Courts may encourage conciliation, mediation at multiple points. Counsel who explain these expectations early reduce frustration and improve outcomes. Trial counsel in Vietnam balance firm advocacy with respectful engagement that aligns with courtroom culture.

Evidence Authentication and Chain of Custody

Screenshots, emails, and invoices need proper source descriptions and validation. Originals or certified copies are often necessary. When evidence originates overseas, the court may ask for legalization or apostille and full translations. A systematic evidence map prepared by trial counsel in Vietnam helps the judge follow the chain from source to conclusion.

Administrative Follow Ups and Requests for Clarification

Courts send notices that require fast responses. Missing a deadline can push a case back to the starting line. Many files stall because a clerk letter sits unanswered. You would need a trial counsel in Vietnam track every notice, maintain a response calendar, and keep the client informed so that no window is missed.

Timelines, Hearings, and Realistic Expectations

Even simple cases can run for months. More complex matters can take longer for collection of evidence and prepare proper explanation in the right format. A transparent timetable set by trial counsel in Vietnam helps clients plan budgets and manage internal expectations. Realism reduces stress and prevents rushed decisions that weaken a case.

Costs, Deposits, and Value Management

Litigation involves court fees, service costs, translation fees, and enforcement expenses. Clear fee letters and staged budgets allow clients to choose the right mix of action and negotiation. Thoughtful trial counsel use early case assessment to decide whether to settle, mediate, or proceed to trial with focused claims.

Cross Border Issues and Coordinating Foreign Evidence

Corporate records, board resolutions, and bank documents often sit in other countries. Gathering them requires cooperation with notaries, consulates, and translators. Coordinated plans led by trial counsel in Vietnam align overseas timelines with local filing deadlines so that the court receives a complete, admissible file.

Enforcement is A Second Campaign

A judgment is a promise until it is enforced. Debtors may shield assets or delay. The civil judgment enforcement agency must locate assets and implement measures. Strategic trial counsel prepare for enforcement from the beginning with asset mapping, contract clause analysis, and security strategies that increase recovery probability.

Arbitration and Court Support

Many commercial contracts contain arbitration clauses. 

Many businesses and even legal practitioners in Vietnam would not know that arbitration clause in a contract which might be limited to a few lines but is considered a separate agreement, independent from the underlying contract. Arbitration clause might be governed by another law, which is different from the law of the contract.

Vietnamese courts can support arbitration through interim measures, evidence taking, and recognition and enforcement of awards. Clients benefit when trial counsel can operate in both venues and can move smoothly between arbitration and the court system when the law allows.

10 Step by Step Guide to Work Effectively with Trial Counsel

Step 1: Define objectives and desired outcomes.

Step 2: Share all contracts and messages even if they look unimportant.

Step 3: Confirm jurisdiction and limitation periods with trial counsel.

Step 4: Prepare powers of attorney with notarization and consular steps arranged in advance.

Step 5: Build an evidence map that links each fact to a document.

Step 6: Approve a translation plan with terminology control and quality checks.

Step 7: File the petition and fee receipts as a complete package under counsel guidance.

Step 8: Respond to court notices within the deadline tracked by trial counsel.

Step 9: Plan settlement options parallel to trial preparation to keep leverage.

Step 10: Prepare an enforcement roadmap before judgment to protect recovery chances.

Frequently Asked Questions

Q1: Can a foreign lawyer speak in a Vietnamese court

No. Only a locally licensed lawyer can appear. A foreign lawyer may advise in the background but cannot address the court. This is why coordination with trial counsel in Vietnam is essential.

Q2: How long does it take to legalize a power of attorney from abroad

Processing can take several weeks depending on the country. Early planning with trial counsel in Vietnam reduces risk of missed filing windows.

Q3: Can I file in English and translate later

Courts require Vietnamese language filings. It is safer to translate first with guidance from trial counsel  so that the petition meets formal standards.

Q4: Is settlement a sign of weakness

No. Courts value clarity and good faith. Well prepared trial counsel in Vietnam pursue settlement from a position of strength while preserving trial options.

Q5: What happens after I win

The enforcement phase begins. Asset discovery, coordination with enforcement officers, and negotiation follow. A proactive plan from trial counsel in Vietnam improves recovery.

Q6: Do courts accept electronic evidence

Yes with proper authentication and clear descriptions of source and integrity. Validation steps are easier when trial counsel in Vietnam design the evidence record from the start.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/trial-counsel-in-vietnam-12-challenges.html

Vietnam Corporate Compliance: 7 Balancing Acts. What Regulators Expect and What Your Foreign Owned Company Needs To Do

  Generally, Vietnam welcomes foreign investment. At the same time, the country expects order and discipline. Vietnam corporate compliance is not only forms and stamps. It is daily practice. It shows respect for law, people, and the environment. For foreign owned companies, rules can feel complex and fast changing. From government’s angle, there are logics behind such. 

In here, we discuss why the compliance rules exist from a government view, why companies struggle in practice, and how to handle the main areas in the right direction.

When stakeholders understand the purpose behind the rules, Vietnam corporate compliance rules becomes more practical and less stressful.

Why the Agencies in Vietnam Concerns

From the state’s view, compliance serves public goals. Taxes fund public infrastructure projects. Labor rules protect fair pay and safety. Environmental rules protect health and nature. Customs rules protect revenue and keep unsafe goods out. Foreign exchange rules keep money flows legal and stable. When companies follow these goals, trust rises between government and the enterprises and the growth is sustainable. With this in mind, Vietnam corporate compliance becomes normal business practice, not a one time project.

7 Balancing Acts. What Regulators Expect and What Your Foreign Owned Company Needs To Do

Investment Licensing and Reporting

Why it matters.

Foreign investors are issued Investment Registration Certificate (IRC), and Enterprise Registration Certificate (ERC) when they apply for project to invest and set up company in Vietnam.  Authorities need an accurate picture of who you are, what you do, where you operate, and how much capital you commit. If your business changes, your licenses must change too. Treat this as core Vietnam corporate compliance.

When you must update IRC/ERC?

• New or additional business lines, products, or services.
• Change of head office, factory, or warehouse address.
• Change of company name or legal representative.
• Change of charter capital or ownership structure.
• Change of project timeline or investment objectives.

Procedure to adjust the IRC and ERC include:

• Internal decision. Prepare a board resolution that approves the change (scope, location, capital, timeline).
• Collect documents. Typical items include lease or land use files for new sites, draft charter amendments, updated list of members/shareholders, and proof of capital capacity (if increasing capital).
• File IRC amendment. Submit the application to the Department of Finance (Department of Planning and Investment in the past),  or the industrial-zone management board, if applicable. Track the status on the investment portal.
• Receive amended IRC. Check that scope, address, capital, and timelines are correct.
• File ERC amendment. Update enterprise registration to align with the IRC: company name, business lines, charter capital, legal representative, head office.
• Publish enterprise info. Update the national business registration portal, company seal or specimen signatures if needed, and notify banks, tax office, customs, and partners.
• Ongoing reports. File quarterly and annual investment reports through the investment system. Keep copies with acknowledgment receipts. These reports are part of Vietnam corporate compliance.

Corporate Governance and Basic records

Why it matters.

Clean records help banks, tax, customs, and labor offices trust your documents. This is the principle of Vietnam corporate compliance.

Records you should always keep current.

• Charter and all amendments (latest consolidated version).
• Board and members’/shareholders’ resolutions.
• Register of members/shareholders and capital contributions.
• Specimen signatures, powers of attorney, and signatory matrix.
• List of company seals and digital signatures in use.

Procedure when leadership changes.

• Approve a resolution on the change (e.g., new legal representative).
• Amend ERC and publish the change on the business portal.
• Update tax authority, banks, customs, social insurance, and e-invoice accounts with new signatory information.
• Replace or revoke old powers of attorney and digital tokens.
• Keep a change log that lists what changed, the effective date, and where it was updated. This log proves ongoing Vietnam corporate compliance.

Tax and Transfer pricing

Why it matters.

Authorities want fair taxation and honest pricing among related parties. Clean process and plain documentation are central to Vietnam corporate compliance.

Routine tax procedures.

• Registration and onboarding: tax code activation, e-invoice registration, bank account notice.
• Periodic filings: VAT returns, withholding/PIT returns, social insurance.
• Year end: audited financial statements, corporate income tax finalization, and statutory reports.
• Retention: keep vouchers, contracts, bank statements, and e-invoice archives in an orderly structure.

Transfer pricing procedures.

• Identify related parties and intercompany transactions for services, royalties, goods, loans.
• Intercompany agreements: put the pricing and scope in writing; describe deliverables in plain language.
• Benefit test: keep evidence that services were actually provided in memos, reports, emails, meeting notes.
• Benchmarking: check that margins are reasonable for your functions and risks.
• Documentation set: prepare and store local file and group reports.
• Annual declarations: include related party disclosures with year end returns.
• Attention required: if margins are off target, record year end adjustments with clear explanations.

These will help strengthen Vietnam corporate compliance.

Customs and Trade

Why it matters.

Correct declarations protect revenue and product safety. Customs is a frontline part of Vietnam corporate compliance for importers and exporters.

Before importing or exporting.

• HS code plan: build an internal HS database for your top SKUs. Keep a short note explaining why each code fits the product.
• Origin mapping: know which trade agreements apply and how you will prove origin with supplier declarations, and manufacturing records.
• Valuation method: document how you determine transaction value and any adjustments
• Licenses: check if your goods need prior approvals for example, special product safety, energy standards, or special permits.

At the time of clearance.

• Prepare contracts, invoices, packing lists, and transportation documents.
• Ensure the broker uses the correct HS, origin, and valuation on the declaration.
• Keep certificates of origin and conformity ready to present.
• Retain all documents for post-clearance checks.

After clearance and for manufacturers.

• Post-clearance audit readiness: maintain a folder system by SKU and by shipment month.
• For processing/production: control raw material consumption norms, bill of materials, and inventory reports; reconcile imports, production, and exports.

Labor, Work Permits, and Social Insurance

Why it matters.

Authorities protect the local labor market and want social funds paid correctly and sufficiently. Labor compliance is people focused Vietnam corporate compliance.

Expatriate work permit procedure

• Position need approval: explain why the role requires a foreign expert including title, duties, location, duration.
• Work permit application: submit education, experience letters, health check, and criminal records as required.
• Visa/TRC process: after the work permit or in parallel, process visa or temporary residence card.
• Labor contract: sign a contract that matches the approved role and location.
• On the job changes: if the role, location, or employer entity changes, review whether a new permit or amendment is required.

Domestic labor procedures.

• Use written employment contracts with clear titles, wages, and work sites.
• If you have a larger workforce, register internal work rules and keep a salary scale and payroll records.
• Submit semi annual and annual labor reports where required.

Social insurance procedures.

• Register the company and each eligible employee with social insurance.
• File monthly contributions on time; keep payroll, attendance, and contribution proofs aligned.
• Coordinate HR, payroll, and accounting so filings match payments. This alignment is visible Vietnam corporate compliance.   

Environment: Permits, Wastewater, and Hazardous waste

Why it matters.

Environmental rules protect public health and the reputation of industrial zones. Consistent practice shows serious Vietnam corporate compliance.

Permits and monitoring.

• Obtain the environmental permits that fit your activities, for example, wastewater discharge or emissions, if applicable.
• Keep periodic monitoring reports (water, air, noise) on file.
• Record incidents and corrective actions in a simple log.

Hazardous waste procedures.

• Classify and label each waste stream; use correct containers and signage in the storage area.
• Contract only licensed collectors for your specific waste types.
• Use transfer documents/manifests for each pickup and file them chronologically.
• Keep capacity and storage time within permitted limits; do not mix incompatible wastes.
• Train plant staff on handling, and emergency steps.

Fire safety.

• Maintain approvals and acceptance records for fire safety systems.
• Keep inspection and maintenance logs for equipment and safety gear.

These items are often reviewed together with environmental files in Vietnam corporate compliance checks.

Foreign Exchange and Capital Flows

Why it matters.

Clean money trails support financial stability and anti money laundering aims. This is a central pillar of Vietnam corporate compliance for FDI companies.

Accounts and equity flows.

• Open a direct investment capital account (DICA). Use this account for all equity contributions, share transfers involving foreign investors, and profit remittance.
• Keep a separate operating account for day-to-day revenues and expenses.
• Contribute capital through the DICA according to the approved schedule for instance 90 days since the establishment of the company; keep bank confirmations and member/shareholder register updates.

Foreign loans.

• Review whether the loan needs registration or notification based on its tenor and terms.
• File the registration (or change registration) within the time window if required.
• Service the loan through the correct account and keep repayment schedules, interest calculations, and bank advices.
• File periodical reports if the rules require them.

Profit remittance.

• Complete year end tax finalization and any financial obligations first.
• Approve a board resolution on profit distribution or repatriation.
• Prepare a remittance documents i.e. audited financials, tax proofs, bank forms and instruct the bank to remit via the DICA.
• Keep copies of SWIFT messages and bank advices as part of Vietnam corporate compliance.

Step-by-Step Guide for Business Owners

Step 1: Understand the purpose.

Train internally.  Teams follow rules better when they know the why. This supports Vietnam corporate compliance across all functions.

Step 2: Map your obligations.

List the seven areas including licensing, governance, tax or transfer pricing, customs, labor, environment, and foreign exchange or capital flows. Note key deadlines, permits, and approvals.

Step 3: Assign one owner per area.

Name a person for each area. Keep a short description of their tasks and who can act when they are away. Clear ownership strengthens Vietnam corporate compliance.

Step 4: Create a calendar.

Put reporting dates, permit renewals, and payment deadlines on one calendar. Review it briefly in weekly or bi weekly meetings.

Step 5  Keep evidence tidy.

Store approvals, filings, and explanations in one structured folder. Use clear file names and last updated dates. This makes Vietnam corporate compliance easy to follow.

Step 6: Focus on real activity.

Check that what is written in licenses, contracts, and transfer pricing files matches how the business actually operates.

Step 7: Prepare for changes early.

Before opening a new site, changing scope, or adjusting capital, review licensing, tax, customs, labor, and foreign exchange activities together.

Step 8: Run a brief internal review each quarter.

Make sure filings are on time, permits are valid and documents match reality.  Regular reviews keep Vietnam corporate compliance healthy.

Step 9: Train new managers.

Give a short onboarding on rules that affect their teams to helps them handle Vietnam corporate compliance with confidence.

Step 10: Communicate respectfully with authorities.

Answer requests clearly and completely. If a mistake happened, explain the fix and how you will prevent it. This builds trust in your Vietnam corporate compliance.

FAQs

Is Vietnam corporate compliance only a legal task?

No. Finance, HR, Operations, Logistics, and Plant teams all play roles. Legal coordinates, but day to day work happens in the business.

When should we start Vietnam corporate compliance?

Start at company setup. If not, start now. Do a simple gap check, then fix the highest risk items first.

How much detail do auditors expect?

Enough to show intent, traceability, and timeliness. Clear checklists, approvals, and evidence are better than long manuals.

What triggers audits despite strong Vietnam corporate compliance?

Chronic losses, unusual margins, HS inconsistencies, missing manifests, off channel capital flows, or late filings.

Can we remit profits before tax finalization?

No. Finish tax obligations first, then prepare a clean remittance request through the DICA channel.

Do job titles have to match work permits exactly?

They should match in substance. If duties change, review permits early to avoid mismatch.

How do we manage hazardous waste under Vietnam corporate compliance?

Label storage, keep transfer notes, use licensed contractors, and keep lab reports. Recheck vendor licenses regularly.

Our company grows fast. How do we keep licenses current?

File updates before or soon after the change.

What language should we use in documents?

Vietnamese.

What if different agencies ask for different things?

Ask for written requests. Provide what each law requires. Keep a record of what you submitted and when. Consistency helps your Vietnam corporate compliance efforts.

Remember, corporate compliance is ongoing and one needs to follow regularly.

Conclusion

Vietnam wants investment that creates value and good jobs. Investors want clarity, predictability and stability. If a foreign-owned company keeps steady habits across the above seven areas from licensing, to governance, tax and transfer pricing, customs, labor, environment, and foreign exchange, then Vietnam corporate compliance becomes a normal routine. It protects the business, supports the community, and helps the company operate in a clear, professional way.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/vietnam-corporate-compliance-7-acts.html