Capital restructuring leading to foreign control<\/li>\n<\/ul>\nFor example, if a foreign logistics group acquires a 60% stake in a Vietnamese transportation company to expand its Southeast Asia network, the resulting entity will be considered a foreign-invested enterprise and must apply for an IRC if it launches new projects, branches, or subsidiaries in Vietnam.<\/p>\n
Legal basis and implications<\/p>\n
This provision is outlined in Articles 23 and 24 of the Law on Investment (2020), and is reinforced by guidelines from the Ministry of Planning and Investment (MPI). Foreign investors must carefully assess equity structures and business plans to determine whether their transaction triggers IRC obligations.<\/p>\nForeign investors must carefully assess equity structures and business plans to determine whether their transaction triggers IRC obligations<\/em><\/figcaption><\/figure>\nFailing to obtain an IRC in such cases can result in:<\/p>\n
\nAdministrative penalties for unauthorized investment<\/li>\n Delays in tax registration and licensing<\/li>\n Invalidation of contracts involving land, labor, or financial services<\/li>\n<\/ul>\nWhen foreign investors hold more than 50% of capital in a Vietnamese company, the enterprise is legally classified as a foreign-invested entity. As a result, any new business activity or expansion undertaken by the company must be registered through the IRC process to ensure full compliance with Vietnam\u2019s investment regulations.<\/p>\n
Organizations under foreign control<\/h3>\n Vietnamese law extends IRC obligations beyond direct foreign investors to cover Vietnamese legal entities that are indirectly controlled by foreign investors. These entities are often structured as local companies but have a foreign ownership trail, and are therefore legally required to register new investment activities under the foreign-invested framework.<\/p>\nVietnamese law extends IRC obligations beyond direct foreign investors to cover Vietnamese legal entities<\/em><\/figcaption><\/figure>\nWhat qualifies as foreign control?<\/p>\n
Under Article 23 of the Law on Investment 2020, a Vietnamese enterprise is considered under foreign control if:<\/p>\n
\nIt is owned by a foreign investor or foreign-invested entity holding more than 50% of charter capital, or<\/li>\n The majority of its members\/shareholders are foreign entities, or<\/li>\n It is controlled via indirect ownership (e.g., through a parent company or affiliated group)<\/li>\n<\/ul>\nThis applies even if the company is registered as a Vietnamese legal entity, operates under a local name, or has a Vietnamese legal representative.<\/p>\n
When does this trigger the IRC requirement?<\/p>\n
Once a company is deemed under foreign control, any new investment project, business expansion, or establishment of new branches must be registered through the Investment Registration Certificate (IRC) process\u2014even though the company is technically \u201cVietnamese\u201d on paper.<\/p>\nOnce a company is deemed under foreign control, any new investment project, business expansion,… must be registered through the IRC<\/em><\/figcaption><\/figure>\nThis includes:<\/p>\n
\nOpening a new office or factory<\/li>\n Adding new business lines or revenue-generating activities<\/li>\n Acquiring land or entering long-term lease agreements<\/li>\n Applying for tax, customs, or import-export privileges under FDI regulations<\/li>\n<\/ul>\nLegal and practical implications<\/p>\n
This provision aims to close regulatory loopholes where foreign investors might use a series of \u201cVietnamese shell companies\u201d to bypass IRC requirements. Authorities now look at substantive ownership and control, not just the nationality stated in business registration documents.<\/p>\nThis provision aims to close regulatory loopholes where foreign investors might use<\/em><\/figcaption><\/figure>\nIn practice, many foreign groups establish a Vietnam-based subsidiary (company A), which then owns another local entity (company B). If company A is foreign-invested, then company B also becomes subject to IRC obligations when conducting new projects.<\/p>\n
Failure to recognize this control structure can lead to:<\/p>\n
\nDelays in investment licensing<\/li>\n Regulatory fines<\/li>\n Risk of retroactive invalidation of project approvals<\/li>\n<\/ul>\nCompanies registered in Vietnam but indirectly controlled by foreign investors\u2014through ownership chains or majority voting rights\u2014are still subject to IRC requirements under Vietnamese law. This ensures transparency and regulatory oversight of all foreign-influenced investment activities, regardless of how the control is structured.<\/p>\n
Step-by-step process to apply for an IRC<\/h2>\n Applying for an Investment Registration Certificate (IRC) is a fundamental legal step for most foreign investors before incorporating a company or implementing an investment project in Vietnam. While the process has been significantly streamlined over recent years, foreign applicants must still navigate a multi-stage procedure involving legal documentation, government approvals, and potential regulatory reviews.<\/p>\nThe process of applying for an IRC still has many stages and has not been significantly simplified<\/em><\/figcaption><\/figure>\nBelow is the standard 3-step process to apply for an IRC, based on Vietnam\u2019s Law on Investment 2020 and practical experience from successful FDI projects:<\/p>\n
Step 1: Prepare required documents<\/h3>\n The first step in obtaining an Investment Registration Certificate (IRC) in Vietnam is to prepare a complete and accurate set of application documents. Proper documentation is crucial to avoid delays during the licensing process.<\/p>\nPreparing a complete application is an important step<\/em><\/figcaption><\/figure>\nAccording to the Law on Investment 2020 and practical guidelines from the Ministry of Planning and Investment (MPI), a standard IRC application dossier should include:<\/p>\n
Application form for investment project registration (using MPI\u2019s prescribed template)<\/p>\n
\nLegal documents of the investor: notarized passport for individuals or legalized Certific<\/li>\n Proof of financial capacity: recent bank statements, audited financial reports, or capital commitment letters<\/li>\n Project proposal: detailing business objectives, capital structure, location, timeline, and revenue expectations Legal documents of the company\u2019s legal representative in Vietnam (if applicable)<\/li>\n Additional approvals for conditional sectors or projects requiring environmental\/social impact assessments<\/li>\n<\/ul>\nThe business address stated in the IRC must match a commercially zoned office, not a residential property. Using ineligible locations is one of the most frequent causes of application rejection.<\/p>\n
Step 2: Submit application via national investment portal<\/h3>\n After preparing all required documents, foreign investors must submit their IRC application through both online and offline channels. This dual submission ensures that the project is registered digitally while complying with official licensing procedures.<\/p>\nThen, foreign investors must submit their IRC application through both online and offline channels<\/em><\/figcaption><\/figure>\nOnline submission via National Investment Information Portal<\/p>\n
Through this portal, investors must:<\/p>\n
\nCreate an account or authorize a licensed legal representative<\/li>\n Upload digital copies of all documents (PDF format)<\/li>\n Complete the online application form<\/li>\n Track processing status in real time<\/li>\n<\/ul>\nOnce submitted online, the system will issue a registration code for reference throughout the licensing process.<\/p>\n
Physical submission at the local authority<\/p>\n
Within 3 working days of submitting online, the investor (or their authorized agent) must deliver a hard copy of the complete dossier to the competent authority:<\/p>\n
\nDepartment of Planning and Investment (DPI) of the province\/city where the project is located<\/li>\n Or the Management Authority of Industrial or Export Processing Zones, if the project is inside a zone<\/li>\n<\/ul>\nThe DPI will cross-verify the physical documents with the online registration, confirm their validity<\/em><\/figcaption><\/figure>\nSubmission confirmation and waiting period<\/p>\n
If the application is complete and complies with all regulatory requirements, the licensing authority will begin reviewing the project dossier. From this point, the standard processing time is 15 working days, as stipulated under Article 38, Law on Investment 2020.<\/p>\n
Many cases have encountered delays due to:<\/p>\n
\nUploading incomplete or unsigned PDF files on the e-portal<\/li>\n Using personal email accounts instead of official company emails<\/li>\n Not submitting physical copies within the required timeframe<\/li>\n<\/ul>\nStep 3: Receive IRC from DPI or zone authority<\/h3>\n Once the application dossier has been fully submitted and validated, the Department of Planning and Investment (DPI) or the relevant Industrial\/Economic Zone Authority will proceed with the review and decision-making process.<\/p>\nDPI or the relevant Industrial\/Economic Zone Authority will proceed with the review and decision-making process<\/em><\/figcaption><\/figure>\nStandard processing timeline<\/p>\n
As stipulated in Article 38 of the Law on Investment 2020, the licensing authority is required to issue the Investment Registration Certificate (IRC) within 15 working days from the date of receiving a complete and valid application.<\/p>\nThe licensing authority is required to issue the IRC within 15 working days from the date of receiving a complete<\/em><\/figcaption><\/figure>\nHowever, actual processing time may vary depending on:<\/p>\n
\nProject scale and capital structure<\/li>\n Business sector (especially if conditional or sensitive)<\/li>\n Whether approvals from other ministries are required<\/li>\n Completeness and clarity of documents submitted<\/li>\n<\/ul>\nIn straightforward cases (e.g. non-conditional business lines, 100% foreign ownership, commercial lease in compliant office buildings), IRC issuance may take 7\u201310 working days.<\/p>\n
Mode of delivery and what to check<\/p>\n
The IRC is issued as an official printed certificate, signed and sealed by the licensing authority. It will include:<\/p>\n
![\"The](\"https:\/\/maisonoffice.vn\/en\/wp-content\/uploads\/2025\/04\/2-IRC-is-an-official-document-issued-by-the-Vietnamese-government-to-foreign-investors-1.jpg\")
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