- Opening a Construction Company in Vietnam as a Foreigner
- Types of Construction Activities Foreign Investors are Allowed to Carry Out
- Legal Requirements for Foreigners Wanting to Open Construction Company in Vietnam
- HR requirements for construction companies
- Timeline for Registration of a Construction Company
- How Can Cekindo Help?
The construction sector in Vietnam is one of the most lucrative sectors in the Asia-Pacific (APAC) region. Despite the impacts of COVID-19, it grew rapidly in 2020. In Q3 2020, the General Statistics Office (GSO) of Vietnam reported a 5.7% year-on-year growth in the construction sector. As a consequence, the cumulative growth rate for the first three quarters was 5%.
Moreover, the construction industry is expected to contribute significantly to Vietnam’s economic growth, with a projected value of USD 94.93 billion by 2026, indicating an annual growth rate of approximately 8.71% (1).
Investing in Vietnam? See Cekindo’s Business Incorporation Services
Furthermore, the quality of the country’s general infrastructure has increased as a result of the government’s efforts, with investments in infrastructure building, tourism infrastructure, and housing projects all throughout the country. As a result, foreign investors looking to start a construction firm in Vietnam will find this sector to be lucrative.
In this article, we will discuss in detail the aspects of opening a construction company in Vietnam for foreign investors.
Opening a Construction Company in Vietnam as a Foreigner
Foreign enterprises as juridical persons of a WTO (World Trade Organisation) member could establish a commercial presence (100% foreign-invested enterprises or branchings) in the country.
General construction work for buildings (CPC 512), general construction work for civil engineering (CPC 513), installation and assembly work (CPC 514, 516), building completion and finishing work (CPC 517), and other activities (CPC 511, 515, 518) are all permitted.
As a result, foreign investors can establish a 100% foreign-owned business or branch to carry out the building and engineering services mentioned above.
Types of Construction Activities Foreign Investors are Allowed to Carry Out
Construction activities allowed for foreigners are as following:
- Project management, etc.
Moreover, foreign businesses can conduct business in almost any sort of construction project as long as they have the necessary sub-license(s) for the associated construction types and classifications.
Legal Requirements for Foreigners Wanting to Open Construction Company in Vietnam
The legal requirements for foreigners looking to set up a construction company in Vietnam are similar to the requirements for opening a regular company like a registered office, legal representative, and the minimum capital requirements are also similar.
Please keep in mind that you’ll require a substantial amount of capital to get approved and apply for a sub-license.
Additional sub-license(s) are required to undertake conditional construction activities once the firm is created, based on construction types and categorization.
RELATED: Vietnam’s Impressive GDP growth Report For 2021 and Beyond
HR requirements for construction companies
To apply for the company’s sub-licenses, employees must have a specific degree, experience, and certificates based on the construction types and classifications.
Timeline for Registration of a Construction Company
It takes 2-3 months to register a construction-related company that does not engage in conditional construction-related activity.
Obtaining sub-licenses for conditional construction related commercial operations once the firm is established will take 6-12 months for each sub-license.
How Can Cekindo Help?
Company incorporation in Vietnam consists of multiple procedures that are time-consuming and overly official, including that of construction firms. Having company registration professionals, like Cekindo by your side can save you a great deal of time as well as provide you with a hassle-free experience. Cekindo provides a wide spectrum of ancillary services related to company registration, like legal consultancy, licenses and other documents acquisition, tax and accounting, and HR services.
Let’s start by filling out the form below and talk to one of our professional counselors.